Preparing For Winter Feed and Taxes

By Scout Nelson

As winter approaches, it is important for livestock producers to assess available feed and plan for the months ahead. A final hay and feed inventory helps determine whether current supplies can meet the needs of the herd throughout the season.

Producers should count bales, measure silage, evaluate pastures, and estimate crop residue grazing opportunities. Considering both best- and worst-case scenarios, including potential cold or snowy conditions, ensures preparedness.

It is also important to account for the number of animals being fed and the quality of feed required. Different classes of cattle, such as calving cows versus growing stockers, have varying nutritional needs.

Storage and feeding losses must also be considered. Silage stored outside or improperly covered hay can lose over 25 percent of dry matter. Feeding methods can further increase losses if not managed carefully.

After completing the feed inventory, planning the next steps is critical. Extra feed that may spoil can be sold to generate income, while a shortfall may require purchasing additional feed or adjusting herd numbers Early planning helps manage costs and reduces the risk of being caught unprepared during harsh winter months.

In addition to feed management, producers must prepare for the tax season. Many pay independent contractors, self-employed workers, or landowners. IRS regulations require issuing 1099 forms to non-employees paid over $600 in a calendar year, rising to $2,000 in 2026.

Common forms include 1099-MISC for services, rent, or interest, 1099-INT for interest payments, and 1099-C for debt cancellations. These forms must be provided by January 31 to ensure timely tax reporting.

Maintaining accurate records throughout the year helps producers meet 1099 filing requirements and avoid penalties. Consulting with a tax advisor or attorney is recommended for clarity on obligations. Proper planning in both feed management and tax reporting supports herd health, financial stability, and regulatory compliance.

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