Friday, May 18, 2018

Northwest hay stocks tight, producers say

The National Agricultural Statistics Service reports on-farm hay stocks up in Oregon and Idaho and down in Washington from a year ago. But sources in Oregon and Washington say most everything on farms is sold and that inventories are tight.

On-farm hay stocks are up from a year ago in Idaho and Oregon and down in Washington, according to the USDA National Agricultural Statistics Service.
But an Oregon producer and shipper and an Ellensburg, Wash., exporter both said on-farm stocks are sold and that overall inventories are low.
“I think inventory numbers are skewed. NASS will get bit in the butt because so many alternative crops are going in, dryland crops because of the shortage of water. NASS missed the mark the last three years,” said Scott Pierson, Silver Lake grower and vice president of the Oregon Hay Growers Association.
People are ordering hay way earlier, fearing volumes will be low because of the lack of water, especially in the Klamath Basin, Pierson said. California producers are switching into almonds, he said.
Corey Rogers, president of Ward Rugh Inc. in Ellensburg, Wash., said new crop alfalfa prices will be up because inventory is so tight. A lot of the Idaho and Oregon on-farm stocks are probably sold but have been slow to move because of issues with trucks. Pierson said Obama administration regulations are hampering trucking. Hours of operation were limited by new regulations.
A May 10 NASS report shows Oregon with 330,000 tons of hay on farms on May 1, up 22 percent from a year earlier and down 1.4 million tons since Dec. 1.
Idaho is at 660,000 tons, up 29 percent from a year ago and down 1.5 million tons since Dec. 1.
Washington, at 230,000 tons, is down 30 percent from last May and 920,000 tons lower than Dec. 1.
U.S. stocks are 15.7 million tons, down 36 percent from a year ago and down 70.6 million tons since Dec. 1, according to NASS.
Shawn Clausen, a Warden, Wash., grower, said Washington supply is short and acres are down because of low prices. People haven’t been replanting alfalfa, he said.
Mike Cobb, an Ephrata, Wash., grower, said he thinks Idaho and Oregon inventories are up because production was up last year and the light winter required less feed.
Washington inventories are down because it’s closer to Ellensburg exporters, he said.
“Exporters like our hay and have been pretty aggressive contracting ahead of time on the 2018 crop,” Cobb said.
For high-quality hay, exporters are paying $185 a ton, up $20 from last year and feeder hay is $145, also up $20, he said.
“Those are good prices but compared with 2013 and 2014, they’re low. I don’t like to see $200 hay because then everyone jumps in and starts growing hay and it crashes. I can make it work at an $165 average,” Cobb said. “Everyone needs to win, to get their share. I’d rather have the market steady than a roller coaster.”
First cutting alfalfa is just starting in the lower and upper Columbia Basin. It’s about a month out in Silver Lake and southcentral Oregon since it’s at a higher elevation, 4,300 to 4,800 feet above sea level.

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