In this article we attempt to explain what is happening to feed costs, including the likely consequences of the recent ethanol boom on these costs and how the different sectors—beef, dairy, pork, and poultry—are adjusting to higher costs. Importantly, speed of adjustment will vary significantly as industries with shorter production cycles, such as poultry, are able to respond in a matter of months whereas adjustments in industries with longer production cycles, such as beef, can take a period of several years.