Purdue News
Purdue News
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June 11, 1999
Prices shrink under weight of so much hayWEST LAFAYETTE, Ind. -- It's a hay-buyer's market. And according to the assistant director of the Purdue University Cooperative Extension Service, it'll likely stay that way for a while."As a result of the larger supplies, prices of hay are the lowest since 1991 and '92," said Dave Petritz, assistant director for Purdue Extension's agriculture and natural resources program and an agricultural economist. "Mid-May prices of alfalfa hay in the nation averaged $82.40 per ton compared to $108 in May of 1998." Nationally, hay stocks on May 1 were estimated at 24.8 million tons, 14 percent larger than a year ago, and the largest since 1992, Petritz said. In Indiana, he said, stocks stood at 350,000 tons on May 1. That's 7 percent greater than a year ago, more than double the 1997 level, and the largest May 1 stock since 1991. Because 1998 hay production was up nationwide, hay prices dropped sharply in early summer last year. The trouble for hay producers is they didn't bounce back. "Even the typical seasonal rise between summer harvest and the peak winter feeding period did not occur because of the large supplies," Petritz said. However, because low prices encourage use, hay disappearance rose by 7 percent nationally from Dec. 1, 1998, through May 1. The increase was much more dramatic in Indiana, where usage increased 60 percent compared to the same period a year ago, Petritz said. "While snow cover led to increased feeding by the state's livestock producers, no doubt an increased amount of Indiana hay moved into hay-deficit areas in the South and Southeast," he said. "Hay disappearance within Indiana during the past year totaled 2.7 million tons, an increase of 23 percent from a year earlier." According to Petritz, results for the year ahead will be ruled by the weather, which will affect hay quality and quantity. In its March report, the U.S. Department of Agriculture said Indiana hay producers planned to harvest 775,000 acres this year, or 3 percent more than in 1998. "If actually achieved," Petritz said, "this would be the largest acreage harvested since 1989." Kentucky producers said they, too, will harvest about 3 percent more acres, but growers in Ohio, Illinois and Michigan expect to harvest fewer acres, and the Wisconsin estimate matches last year's harvest. Given Indiana's potential for an even larger hay crop this year, a sharp rise in hay production expected in Texas and Oklahoma, and the already large hay carryover, Petritz said prospects for price increases are dim: "Producers should be prudent in considering further expansion of hay production unless they have a consistent market outlet that will return a profitable price." How to cope with low hay prices will be a key discussion topic when hay producers gather at Purdue's annual Hay Day, Thursday, June 24, at the Feldun-Purdue Agricultural Center west of Bedford, Ind. The field day begins at 8:30 a.m. and will end at 4 p.m. "The goal is to inform farmers on how to produce and use forages," said Keith Johnson, Purdue Extension forage specialist. "It also gives farmers the opportunity to interact with producers of like interest, agribusiness personnel and university personnel." The event will feature seminars by specialists on reducing the risk of rain-damaged hay and losses from the potato leafhopper, forage performance trials, improved sorghum-sudangrass, and how best to provide water in a pasture. Farmers also can compete in a hay quality contest by bringing one unbroken bale of hay as an entry. The hay will be tested at Purdue, and winners will be announced within 10 days of the field day. Each winner will win a certificate and forage-related products. Hay Day is free, and lunch is available at a minimal price. For more information, contact the Purdue Extension educator in your county or call Purdue Extension toll free at (888) EXT-INFO.
Sources: Dave Petritz, (765) 494-8494; dpetritz@purdue.edu Keith Johnson, (765) 494-4800; johnsonk@purdue.edu Writer: Amy H. Raley, (765) 494-6682; ahr@aes.purdue.edu Purdue News Service: (765) 494-2096; purduenews@purdue.edu
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