Dairy farms are discovering significant financial and nutritional benefits by integrating high-oleic soybeans into their cattle feed. One New York dairy, Half Full Dairy, saved $0.37 per cow per day by switching to high-oleic soybeans in 2020, primarily due to rising palm fat prices and supply chain disruptions. This move allows dairies to replace expensive purchased fat products and bypass proteins, utilizing homegrown feed instead.
The nutritional impact is also notable; for example, one dairy observed a butterfat increase of about two-tenths of a percentage point, with energy-corrected milk and protein percentage also rising. During one feeding season, a herd's butterfat climbed from approximately 4.2% to 4.5% even under heat stress. Farmers like Chris Elbe, who milks 2,900 cows, are growing their own high-oleic soybeans (Pioneer's Plenish variety) and partnering with neighboring farmers to meet demand, also investing in on-farm roasting and storage facilities.
The economic advantages are substantial, with some farms saving between $0.25 and $0.50 per cow per day in feed costs. Michigan State University modeling indicated an average income-over-feed-cost advantage of $0.65 per cow per day for farms growing and roasting their own high-oleic soybeans, and about $0.27 per cow per day for those purchasing roasted beans. The initial investment in roasting and storage facilities can pay off quickly, with some dairies seeing a return within 12 to 18 months due to improved milk production, component gains, and reduced purchased fat.
High-oleic soybean acreage in the U.S. was nearly 1 million acres across 16 states last year, with projections for a seven-fold expansion to between 5 million and 7 million acres within a decade. Growers typically receive a premium of $0.75 to $1.25 per bushel over conventional varieties, locked in by contracts before planting. The United Soybean Board has invested over $130 million in developing high-oleic traits, resulting in over $400 million in premiums for farmers, driven by demand from both dairy farmers and industrial users like Nestlé and Frito-Lay.
