Grain or Grazing?

Making the Most of 80 acres in Illinois.

By Katelyn Engel, Agricultural Communications student, University of Illinois

Central Illinois has long been defined by its rich black soil and expansive flatlands — landscapes that make it ideal for high-yield grain production. But with cattle prices at an all-time high and continuing to climb, many farmers are at a crossroads. Grain has long dominated the region’s agricultural economy, but shifting markets and rising livestock values have sparked a new question for landowners, renters, and next-generation producers alike: Should I utilize my 80 acres for grain farming or as a cattle operation?

The answer depends on what fits your goals and land the best. Factors to consider include financial risk, lifestyle preferences, and how each producer defines long-term success.

From crops to cows

The traditional corn-soybean rotation remains the bread and butter of most Illinois farms. With average corn yields near 200 bushels per acre and recent commodity prices hovering around $4.50 per bushel, the gross revenue on 80 acres of corn might reach $80,000. However, profitability is squeezed by rising input costs.

Input costs for corn, including seed, fertilizer, herbicide and machinery can easily run around $900 per acre as summarized in recent outreach materials from Iowa State University Extension. These tight margins leave little room for potential losses.

Farmers often rely on crop insurance and marketing tools to manage price risk. Yet according to Mary Kurzweil, a livestock analyst with CattleFax, export instability is weighing heavily.

“One risk grain producers are facing now is a drop in corn exports, especially to countries like China,” she says. “There’s not a lot of optimism in corn outlooks, and that uncertainty affects decision-making.”

Meanwhile, cow-calf production is gaining attention. A well-managed 80-acre operation might comprise 65 acres of rotational pasture, 10 acres of hay and up to five acres of handling facilities including working chutes, holding and crowding pens, and more. With current calf prices ranging from around $1,200 to $1,500 per head, gross income can rival or exceed grain on a per-acre basis, particularly for existing cattle operations and improved margins.

“They were near break-even not long ago, and now they’re very positive and expected to stay that way for at least a few more years,” Kurzweil says.

This surge is driven by tight supplies and resilient demand. The drought in Texas and other key cow-calf regions has reduced the national herd. At the same time, demand for both domestic and exported beef is holding strong.

Still, getting into cattle requires capital. Heifer and bred cow prices are high, as are interest rates. The cost of borrowing makes getting into the cattle business risky, especially since you are waiting a year or more to see any return, Kurzweil says.

Nik Jakobs, a cattle producer in Sterling, Illinois, knows risk well. “It’s not how much you receive for your cattle, it’s more important how much it costs to replace them,” he says. Right now, replacement costs are remarkably high, ranging from as much as 100 percent more than just five years ago.

Even so, Jakobs values the flexibility of having cattle and crops. “There’s a symbiotic relationship,” he says. “Cattle produce manure, which builds our soil’s water-holding capacity and resilience. And instead of trucking grain offfarm, we walk it off through our cattle.”

Labor and lifestyle

One of the biggest differences when comparing grain farming and cattle raising is the daily commitment livestock requires. Grain farming is seasonal; it is intensive during planting and harvest, but with more flexibility the rest of the year.

In contrast, a cow-calf operation runs on a 365-day clock.

“There’s no skipping out in March or December,” Jakobs says. “Cows don’t wait on your schedule. You’re calving or feeding no matter what the weather looks like.”

That constant attention is not for everyone. But for many cattle producers, it is not a burden — it is a lifestyle. “All of our kids spend time on the farm,” Jakobs says. “We bring them around all the time because we want them to love this farm as much as we do. If we are not bringing them around, why are we doing it?”

Still, labor is a finite resource, especially as farm families stretch to manage multiple enterprises or off-farm jobs. One kind of landowner might find the autonomy of grain farming more appealing. For others, the hands-on nature of cattle raising gives purpose, and builds legacy.

Weighing the future

Experts agree that both systems carry risk. Grain farming is vulnerable to global market shocks and climate extremes. Cattle operations face disease, price fluctuations, and high input costs. But both now have tools to help producers navigate uncertainty.

“USDA has added more tools for cattle producers,” says CattleFax’s Kurzweil. “Livestock Risk Protection is a big one that helps producers lock in prices. There’s also drought insurance, which is becoming more important even in the Midwest.”

Land use adds another layer of complexity. According to Dr. Lee Schulz in the Ag Decision Maker Newsletter, “on-farm land use decisions involve trade-offs.” If a producer uses land for hay or pasture, they forgo potential income from row crops. Opportunity cost plays a pivotal role in choosing how best to allocate limited land resources.

The publication also emphasizes the role of preferences in land-use choices. “Some people really like seeing cows on pasture and realizing the environmental benefits of grazing cattle,” Schulz writes.

For producer Jakobs, success lies in diversity. “Some years cattle margins are tight. Other years, grain is underwater. But rarely are both bad at the same time. That’s the power of diversification.” And Illinois is one of the unique places where diversifying is possible.

Environmental sustainability is also becoming a bigger factor. Practices like rotational grazing, manure application and cover cropping can make livestock and crop systems mutually beneficial. Kurzweil believes those synergies will matter more in the future. “There’s growing interest in sustainability metrics,” she says. “Some buyers are already paying premiums for cattle raised under specific environmental protocols.”

Ultimately, the question is not just about land use, but also about values. What does success look like for producers? Is it yield per acre, or time spent with family? Is it flexibility or predictability?

“Right now, if you already have cattle, you’re in a strong position,” Kurzweil says. “Even if you’re just getting in, the next couple years could still offer strong returns if you manage your risk and costs.”

Jakobs sums it up more personally: “We’re not just raising calves; we’re raising the next generation. This isn’t just about income. It’s about identity.”

In central Illinois, where every acre has value and every season carries risk, there may be no one-size-fits-all answer. But for those willing to think beyond tradition, and invest in what matters most, the land may be more versatile than ever imagined.