Tuesday, September 4, 2018

Hay production falls, prices rise due to drought

Price breaks not expected before next marketing year.

Katelyn McCullock, senior economist with the Livestock Marketing Information Center (LMIC), recently reported to Kansas State University’s "Agriculture Today" that despite an expected increase in the alfalfa yield this year, other hay production has suffered due to ongoing drought.
Alfalfa yield per acre will be well above 2017 levels, up about 12%, but shy of prior record levels. Alfalfa production is pegged to be at about 5% above 2017.
However, a yield drop for other hay is expected to be significant, 11% below 2017 and the lowest number since 2012. This puts total production 7% below last year.
“We have seen some late-season precipitation in the southern Plains,” McCullock noted. “Does that mean we can get some cool [season] grasses going and possibly some other forage? Absolutely, but I think expectation-wise, you’re looking at tighter hay supplies into next year.”
The lower production has resulted in several states reporting that hay prices have moved higher during a time when hay prices typically begin moving lower.
“There are several states that are over $200 per ton for all hay, and those states are going to really struggle to see any kind of price break before the next marketing year," she said.
The University of Wisconsin Extension reported that markets have been stronger as dry weather is forcing livestock producers to take inventory of winter feed and as short pastures have forced farmers to begin using stored feed in place of pasture or move livestock to market early.

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