Managing volatile input costs in livestock farming
By Chantal Brown
The recent conflict in Iran has once again highlighted the vulnerability of our farming systems to global events. With urea prices rising by as much as 50% and supply becoming increasingly uncertain, many of us are feeling the pressure of higher input costs. At LENs, we have long encouraged and supported farmers to use fewer external inputs. Now is an excellent time to explore practical ways to reduce risk and protect profitability on your farm.
Livestock systems often possess more flexibility than we realise. When faced with challenges, many farmers have turned adversity into opportunity by adopting regenerative practices. Some made bold changes almost overnight, while others introduced smaller adjustments that built steadily over time. There is no single right approach. The key is to consider your own farm context, your appetite for risk and to make changes that feel manageable and sustainable for you.
Here are three areas worth examining closely to help de-risk the impact of rising input costs.
1. Assess your stocking rate
Every farm has an ecological carrying capacity. Pushing stock numbers beyond that point usually depends on extra fertiliser and imported feed. Take a careful look at the true cost of production for those additional animals. In many cases, lowering stocking rates slightly can reduce overall costs while improving animal performance and pasture health.
Focus on lowering the cost of production per kilogramme of meat or litre of milk. Prioritise growing more of your own feed and improving nutrient cycling within the farm gate. By supporting the biology in your soil, you can gradually build resilience and, over time, often support higher stocking rates with fewer purchased inputs.
The benefits include reduced fertiliser use, deeper roots, stronger soil biology, and greater flexibility to respond to seasonal conditions and market opportunities.
2. Optimise your grazing management
Good grazing management is one of the most powerful tools we control completely, and it has a direct effect on farm profit.
Consider pushing feed in front of stock earlier in the rotation to ensure animals have plenty of fibre. This encourages higher intake and supports the liquid carbon pathway through increased photosynthesis. Think carefully before reaching for the baler. Could deferred grazing, sometimes called standing hay, work on some paddocks? Allowing pasture to recover fully can replenish soil biology and often leads to higher production in the following two seasons.
Focus on recovery rather than simply rest. A paddock rested for only thirty days may not be fully recovered. Aim for the third leaf stage, when quality returns and the plant has rebuilt its root system. Longer recovery periods have shown benefits even in difficult seasons. Healthy, well-recovered pastures create a more resilient system with better liquid carbon flow and improved soil structure.
3. Support the nitrogen cycle
The atmosphere and our soils already contain vast amounts of nitrogen. The challenge is to harness this free resource more effectively through healthy soil biology and plant cover.
Well-managed grazing can return significant amounts of nitrogen to the soil. For example, producing fifteen tonnes of dry matter per hectare through grazing can cycle up to four hundred kilograms of nitrogen per hectare back into the system via manure and urine. To support this process:
- Feed your soil biology: provide air, water, food, and shelter for bacteria, fungi, protozoa, earthworms, and other organisms. Avoid compaction wherever possible, as it is one of the greatest threats to soil life.
- Increase species diversity: supply a wider range of microbial foods through root exudates.
- Use microbial stimulants: apply substances such as seaweed, humates, and fish hydrolysate to boost biological activity.
- Protect soil life: maintain ground cover to moderate temperature extremes and reduce unnecessary chemical or mechanical disturbance.
- Address mineral deficiencies: correct limitations in the nitrogen cycle. Simple soil and plant tests can identify opportunities to supplement elements such as sulphur, molybdenum, cobalt, and calcium. Correcting these deficiencies often improves nitrogen efficiency dramatically.
- Improve nitrogen efficiency: only 40-50% of applied nitrogen is typically taken up by plants. Foliar applications at lower rates, buffered with humates, can significantly increase uptake. Consider using cyclone sprayers or tow-and-fert systems to dissolve nitrogen in the spray tank. Adding carbon sources such as humic and fulvic acids helps bind nitrogen and reduce leaching.
- Plan for the spring: feed biology in autumn so it can work through winter and deliver a strong spring flush. When applying lime, consider broadcasting diverse seed with it, such as clover, plantain, and chicory, particularly on ryegrass-dominant pastures. This can improve rooting depth and create a more productive sward for the following season.
By focusing on these practical steps, livestock farmers can reduce their dependence on expensive and uncertain inputs while building systems that are more resilient and profitable in the long term. Many farmers who have made this journey report improved soil health, better animal performance, and greater peace of mind even when input prices rise.
Small, consistent improvements often compound into remarkable results over time. Your experience, curiosity and observation are your greatest assets.
At LENs, we remain committed to supporting farmers who want to farm with fewer external inputs. If you would like to discuss any of these ideas further, please get in touch with Chantal Brown at: chantal.brown@3keel.com