Hay Prices

[blacksnake]

I know hay is getting expensive in the southwest but I didn't think it would get to this stage around here. I am in central IL and just saw an add for 2010 alfalfa hay priced $350/ton. I've seen several ads for around $250 /ton and thought that was high.

 

[kjonesel]

I helped my son with planting 12 acres of orchard grass and timothy this fall. He worked the ground by subsoiling, discing it three times over a months period of time and then multiple times with the chain harrow, liming it with 3 tons of lime per acre along with fertilizer batched with primarily potash and phosporus. He has a wonderful stand but when he takes his imput costs and apply it to what it makes I am sure it will be shocking. Nitrogen has doubled in cost in the last 15 months and I quit keeping up with the rest of the fertilizer prices. Alfalfa seed was up this past fall and the roundup ready Alfalfa was hundreds of dollars per bag so seed has increased just as much. Hay and pasture quality ground is now renting in Southern Indiana from 75 to over 100 dollars per acre and they are waiting in line for it.
I believe that there will continue to be less hay produced over the next few years because more land is being removed from grass production and shifted to row crops. I contribute this to the ethanol industry primarily and also to the weak value of our dollar overseas allowing foreign countries to compete against domestic markets, such as the livestock industry.
What I have done is to maximize my forage efficiency by reseeding pastures, controlled grazing, multple applications of my fertilizers, and paying more attention to when I harvest my hay. In the past I always stored my round bales outside but within the next 4 months I intend to build a hay barn, knowing that the hay saved will justify the cost. Another area that I am pursuing is the ability of the Gelbvieh breed to do well strictly on grass with no grain. Though I have always seen the benefit of supplementing the cows with a small amount of grain it may impossible to continue. These are just a few of the items to consider in the year ahead and it may mean staying in business or loading the cows out.

 

[bigbull338]

I know hay is getting expensive in the southwest but I didn't think it would get to this stage around here. I am in central IL and just saw an add for 2010 alfalfa hay priced $350/ton. I've seen several ads for around $250 /ton and thought that was high.

the reason that your seeing high hay prices in your area is because people are cashing in on the drought here in texas.an most all of your extra hay is being hauled to texas.

 

[lynnmcmahan]

Just saw in the paper that a Mississippi man had a scam hay business. He was selling what he didn't have. Hope they hang him.

 

[kjonesel]

I can agree with you on the hay being exported from our area but it's not more than any other year. My brother's who put up the large square bales have actually had less demand for their hay this year. Last year they hauled it down to Tennesee and the very north part of Alabama where they experienced a drought. Fuel costs along with the high prices for cattle are actually decreasing the demand for high priced hay. Farmers are actually cashing in instead of feeding their hay, my brother in law hauled off 12 heifers Sunday instead of breeding them and will sell the hay he had for them. Now the pasture that the government paid to put a fence around two years ago is sitting empty. Now he'll go to Florida for 2 weeks this Christmas with cash in his pocket. Overall the cattle industry is going to be a wild ride over the next decade.

 

[HomePlaceAngus]

I too hope they hang him :clap: :clap: :clap:

 

[kjonesel]

Naw forget hanging, put him in a pen with a starving bull.

 

[James T]

I know hay is getting expensive in the southwest but I didn't think it would get to this stage around here. I am in central IL and just saw an add for 2010 alfalfa hay priced $350/ton. I've seen several ads for around $250 /ton and thought that was high.

the reason that your seeing high hay prices in your area is because people are cashing in on the drought here in texas.an most all of your extra hay is being hauled to texas.

BB I think I just saw your front yard pulled through town on an 18 wheeler in the form of round bales. Last round I bought was $140 for a 4x5. They said it was Coastal but I saw East Texas tree branches in the net wrap and part of a Kubota tractor.

 

[tsmaxx47]

just took delivery of the second half of my annual hay order; $45/round bale for mixed praire grasses....

 

[novatech]

This always kills me when a farmer is finally making a little money you want to hang him. Yet you will go to the store a pay a 300% mark up a freaking shirt or up to 3000% on prescription drugs. So if some dumb A pays way to much for a calf you fed with that high priced hay, you going to send some money back.
The buyers make a choice, buy the hay or sell the cows. When you decide not to sell the cows then which of you is really at fault for the high price of hay?

 

[Red Bull Breeder]

Just saw in the paper that a Mississippi man had a scam hay business. He was selling what he didn't have. Hope they hang him.

This is the guy they want to hang Nova.

 

[TexasBred]

This always kills me when a farmer is finally making a little money you want to hang him. Yet you will go to the store a pay a 300% mark up a freaking shirt or up to 3000% on prescription drugs. So if some dumb A pays way to much for a calf you fed with that high priced hay, you going to send some money back.
The buyers make a choice, buy the hay or sell the cows. When you decide not to sell the cows then which of you is really at fault for the high price of hay?

I think they only wanted to hang the one that sold hay he didn't even have. That's not gouging..... it's theft.

 

[Red Bull Breeder]

Nova justs needs more coffee this morning.

 

[hayray]

This is a good topic. Inputs for hay production will not pencil out if you go by the book unless you are a dairy producer. Selling hay and or beef cattle are not going to pay for 400 lbs. per acre/year of commercial fertilizer so you can get a 5 ton per acre yield. Inputs are based largley on a corn growers salery, at least in this part of the country, probably alot different for you in Texas. Take a defensive - pro-active approach now to stay in business, don't play the mainstream game unless you are a large producer. Amercian farms and ranches are getting bigger in order to survive because compared to 30 years ago the profit per unit of production is so much less, so smaller producers need to find a better method to survive. It is getting now that in my area a 100 cow dairy is a thing of the past, they can't compete for land to survive, most of the dairys are starting to milk close to a 1000 head or more.

 

[dun]

This is a good topic. Inputs for hay production will not pencil out if you go by the book unless you are a dairy producer. Selling hay and or beef cattle are not going to pay for 400 lbs. per acre/year of commercial fertilizer so you can get a 5 ton per acre yield. Inputs are based largley on a corn growers salery, at least in this part of the country, probably alot different for you in Texas. Take a defensive - pro-active approach now to stay in business, don't play the mainstream game unless you are a large producer. Amercian farms and ranches are getting bigger in order to survive because compared to 30 years ago the profit per unit of production is so much less, so smaller producers need to find a better method to survive. It is getting now that in my area a 100 cow dairy is a thing of the past, they can't compete for land to survive, most of the dairys are starting to milk close to a 1000 head or more.

The only dairys around here that milk less then 70 head (average around 45) are only in business because they own the land already. One young lady we know has just jumped up to 80 head but is marketing home delivery whole milk. I have no idea how they got the additional expenses to pencil out but at 8 bucks a gallon delivered they seem to be at least making a little.

 

[CottageFarm]

Yep, prices are real high here too. Have been all summer.
Alfalfa is running $300-350/ton
Grass $250-$300/ton
Weeds $200-250/ton

 

[novatech]

Nova justs needs more coffee this morning.

I agree hang the Bast..... My mistake.
And you were right about the coffee.

 

[Wisteria Farms]

Before I say anything else... let me say, we pay cash at delivery for our hay...so this isn't a case of slowpay/nopay.

We've been trying for WEEKS to get our winter supply from a supplier that we've bought from for years... we do not wait until the last minute and he knew we would be buying from him again this winter just as we have in the past. HOWEVER, our supplier (as suspected) has been taking everything to Texas. I don't blame the guy for making a buck... he's helping those in need and helping his own pocketbook... that's great. But DONT screw your regular customers... as you MIGHT just need us again one day when the south is back on their feet.

Today we FINALLY got our first Semi-load and I was informed my price was going up and he MIGHT be able to give me one more load (I need 3). I ignored the "might" and told him to go ahead and bring the second Semi NOW. I'm afraid if he doesn't, it'll wind up in Texas! I don't mind paying more because there are people in dire straights paying LOTS more but when you take product from your regular customers because you can get double-money...THATS GREED... its going to eventually come back and bite you.
Ok... I'm done griping now. :secret:

 

[hayray]

I agree with ya Wisteria, that is bad business that he is doing that to you. What comes around, goes around. There are just as many years of a slow hay market as a good one and a hay producer needs to keep his customers in business. Selling hay at a average price to steady customers is just as good as high prices one year and low prices the next. For me, I like to know that I have a place for my hay to go at a nice profit to keep cash flow rather then play the crazy market.

 

[highgrit]

Some folks will do anything for a dollar. That just makes no business sense to me at all.