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 A Penton Media Publication January 15, 2008 |  
Ehay WEEKLY CONTENTS
Top of the News USDA Report Shows Increase In Hay Stored On Farms
More News Growers Talk Marketing At Symposium, Feb. 4-5 Texas Dairies Create Growing Demand For Hay Feed Prices Expected To Impact Dairy Growth In 2008
State Reports Kansas Minnesota
Events Idaho Conference Set For Burley, Feb. 26-27 Calendar
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Top of the News
USDA Report Shows Increase In Hay Stored On Farms
Stocks of all hay stored on farms totaled 104 million tons on Dec. 1, 2007, up 8% from the December 2006 number, according to last Friday's USDA report. Hay disappearance from May to December 2007 totaled 61.3 million tons, compared with 67.1 million tons for the same period one year earlier.

Compared with Dec. 1, 2006, hay stocks increased in most of the Great Plains, eastern Rocky Mountain, Delta and Southeastern states. Good growing conditions prevailed in many of these states, resulting in higher hay production. Meanwhile, stocks decreased throughout the upper Mississippi Valley, central Corn Belt, Ohio and Tennessee Valleys, Mid-Atlantic, and the western Rocky Mountain regions. These areas experienced drier-than-normal to drought conditions and lower hay production.

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More News
Growers Talk Marketing At Symposium, Feb. 4-5
Organic grower Bill Simon believes in diversification -- in crops and in sales. So he markets part of the 7,000 acres of hay his family operation produces to seven organic dairies but also uses a hay dealer. Simon, Fairfield, ID, will tell how he made his start and where his operation is headed during a grower marketing panel on the second day of the National Alfalfa Symposium, to be held Feb. 4-5.

Tom Bailey, Ephraim, UT, and his brother, Ken, produce and market roughly 200,000 tons of alfalfa and other forage products to markets around the world. Tom, too, will speak on the grower panel. The Bailey Brothers started producing double-compressed bales in different sizes in 1998. He'll talk about their journey from local to international marketers and discuss the growth of their operation to include three hay processing plants.

Kirk Shane, Atkinson, NE, will tell of the challenges of producing and marketing alfalfa in the midst of corn and soybean country. Another grower who believes in diversification, Shane also produces corn, soybeans, wheat and livestock with two brothers, Scott and Todd, and his son, Perry.

The symposium will be held at the Ramada Inn and Conference Center in Kearney, NE, in conjunction with the Nebraska Alfalfa Marketing Association's Mid-America Alfalfa Expo, Feb. 5-6.

For details on the symposium schedule or to register, visit alfalfasymposium.com, or call 800-722-5334, ext. 14695. For information on the expo, visit alfalfaexpo.com/.

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Texas Dairies Create Growing Demand For Hay
The market for dairy hay is growing in the Texas Panhandle as the region's dairy cow population continues to increase at a rapid pace. Available land and a cow-friendly climate have attracted dairies from inside and outside of Texas. Three of the top five milk-producing counties in Texas -- Parmer, Deaf Smith and Castro counties -- are in the panhandle. Benji Henderson, Parmer County agriculture and natural resources extension agent, says, "There wasn't a dairy to be found in the area about 20 years ago, and now we have a number of them."

The panhandle has around 140,000 dairy cows now, and more are on the way. "We expect to see continued growth in the area for at least the next five years," says Ellen Jordan, dairy specialist with the Texas AgriLife Extension Service. "How fast that growth occurs depends on milk prices and factors such as the cost of concrete and steel. But we could see another 100,000 dairy cows come to the area over the next five to 10 years." Jordan says the average dairy in the area has around 2,000 cows.

Dairy-quality alfalfa hay is hard to find throughout Texas this year. Jordan says a lot of moisture early in the year made it difficult to put up quality hay in some areas. "We have an abundance of Coastal bermudagrass, but some of it got too mature," she explains. "A lot of our dairy producers have some silage they can use this winter. It has been harder to find wheat straw for rations."

Limited irrigation water will have an impact on the region's crop production capabilities, according to Vivien Allen, Texas Tech University forage agronomist. Read her comments in the article, "Trouble In Texas," in the January issue of Hay & Forage Grower.

Contact Jordan at 972-952-9212, or Henderson at 806-481-3619.

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Feed Prices Expected To Impact Dairy Growth In 2008
The recent World Agricultural Supply and Demand Report from USDA suggests that higher feed prices will limit growth in dairy cow numbers and milk produced per cow in 2008. The same report predicts increased beef production, too. USDA raised its beef production estimate from last month, citing higher cattle-on-feed inventories on Dec. 1. That will mean more beef animals will go to market in the first part of 2008.

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State Reports
Kansas
"We had some winter weather in Kansas in December, which has increased our hay usage and put some support under the hay market," reports Steve Hessman, USDA-Kansas Department of Agriculture market news reporter. "Good row-crop production led to good fall grazing conditions on crop residues prior to December. That has run out now so there is more supplemental feeding going on. There was not much wheat pasture this fall because it was too dry to plant wheat."

In wet, cold weather, Kansas feedyards start to use higher-roughage rations. "Feedyards have used a little more hay through December and beginning of January," Hessman says.

Dairy hay can still be found in the state, but supplies are dwindling. Poor-quality hay is widely available. "Kansas hay producers are still getting calls from the Southeast where folks were hit by the drought, but freight costs are so high that it is difficult to be able to meet those needs," he says.

More hay growers are likely to convert hay ground, especially irrigated fields, to corn, milo and soybeans this year because of high grain prices, Hessman says. "Some of these farmers who have carryover on alfalfa really aren't concerned about the carryover because they are looking for 2008 hay production to be down."

Two new ethanol plants have started production in southwestern Kansas -- in Garden City and Liberal. "Those plants are having an impact on roughage usage, but we don't know the full impact yet," Hessman says. "Alfalfa producers are hoping cattle feeders keep alfalfa in the ration. It's possible more crop residues may be used in feedlot or dairy rations, but we just don't know yet. When you are feeding wet distillers grains, we know some of it is going to be fed with low-quality roughages."

Contact Hessman at 620-227-8881.

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Minnesota
Horse hay supplies will be very tight this winter and into spring in Minnesota, says Kevin Nelson, Nelson Hay Company, Hadley. "All the hay I have on hand is already spoken for, and I am forced to tell even past customers that I don't have hay available if they didn't contract for it ahead of time," he says. "It has really paid off for customers who contracted last year. Hay prices at the local auctions are $130 to $180 or more per ton." But quantity at the local auctions has decreased 30-50% compared to what was sold the year before, Nelson says. Farmers are taking alfalfa and grass out of production to put in more corn and beans in his area, he adds. He won't increase his hay acres this year, but did replace older hay fields acre for acre.

Nelson plans to encourage his horse hay customers to buy medium square bales instead of small squares this year. "I plan to push the medium squares for two reasons: one is cost in handling and the other is efficiency," he says. "At this time I plan to offer a $15/ton price difference. Small square bales are time-consuming. I will still be making them; I just plan to offer more of a price difference.

"Due to the drought last year, I was counting bales all summer and I never had to do that before," he states. "This year I may have to limit the total amount of tons available for contracting with customers, in case we have another dry summer."

Nelson will have bales available for potential customers to inspect at the Minnesota Horse Expo, to be held April 25-27 at the state fairgrounds in St. Paul.

Learn more about Nelson Hay Company at www.nelsonhayco.com/ or call Nelson at 507-836-6181.

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Events
Idaho Conference Set For Burley, Feb. 26-27
The Idaho Alfalfa And Forage Conference will be held at the Best Western in Burley on Feb. 26-27. The first day of the conference, industry experts will look at alfalfa production with limited irrigation, supplemental irrigation on dryland alfalfa and whether or not aerators improve irrigation. Alfalfa production in China, exporting to Asia, weed and pest management, new markets and genetics will also be discussed.

On Feb. 27, talks on timothy hay and organic alfalfa will lead off the day. Other topics will include the economics of corn grain vs. silage or alfalfa, fiber and starch digestibility of corn silage, and performance of warm-season annual grasses.

For registration information, call the Idaho Hay And Forage Association at 208-888-0988. Register online at www.idahohay.com.

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Calendar
Jan. 16 -- Kansas Hay And Grazing Conference, Kansas Farm Bureau Building, 2627 KFB Plaza, Manhattan. Register at the door for $60. Contact Gary Kilgore at 620-431-1530 or kwalters@oznet.ksu.edu.

Jan. 16-17 -- Washington State Hay Growers Association Conference And Trade Show, Three Rivers Convention Center, Kennewick. Call 509-585-5460 or visit www.wa-hay.org/.

Jan. 17-18 -- Southwest Hay Conference, Ruidoso Convention Center, Ruidoso, NM. For more information, visit www.nmhay.com, or contact Gina Sterrett at nmhay@yahoo.com or 575-626-5677.

Jan. 18 -- North Dakota State University Grass-N-Beef Review, NDSU Central Grasslands Extension Center near Streeter, ND. Contact Paul Nyren at 701-424-3606 or p.nyren@ndsu.edu.

Jan. 20-22 -- Northwest Alfalfa Seed Growers Winter Seed Conference, Silver Legacy, Reno, NV. Call 509-585-5460.

Jan. 27-Feb. 1 -- Joint Society For Range Management And American Forage And Grassland Council Conference, Louisville, KY. Visit www.rangelands.org/events.shtml.

Jan. 29-30 -- Midwest Forage Association 2008 Joint Symposium And Annual Meeting, Howard Johnson Hotel and Conference Center, Wisconsin Dells, WI. Held in conjunction with Wisconsin Custom Operators and Professional Nutrient Applicators of Wisconsin annual meetings. Learn more online at www.midwestforage.org, or call the Midwest Forage Association at 651-484-3888.

Feb. 4 -- Range & Pasture Management Workshop, Red Lion Canyon Springs Hotel, Twin Falls, ID. Sponsored by University of Idaho department of rangeland ecology and management, and the USDA/ARS Forage and Range Research Lab. Contact Mary Fenwick at 208-736-3605 or mfenwick@uidaho.edu. Visit www.idahohay.com to download a brochure and agenda.

Feb. 4-6 -- 2008 National Alfalfa Symposium And Mid-America Alfalfa Expo, Kearney, NE, sponsored by Hay & Forage Grower and the Nebraska Alfalfa Marketing Association. Visit www.alfalfasymposium.com and alfalfaexpo.com.

Feb. 6-7 -- Saskatchewan Beef & Forage Symposium, Saskatoon Inn Hotel & Conference Center, 2002 Airport Drive, Saskatoon, Saskatchewan. Contact Murray Feist at 306-694-3492 or mfeist@agr.gov.sk.ca, or John McKinnon at 306-966-4137 or john.mckinnon@usask.ca. Visit www.saskforage.ca/.

Feb. 8 -- Ohio Forage & Grassland Council Meeting, Ohio Department of Agriculture Bromfield Building, Reynoldsburg, OH. Contact Leah Miller, 740-545-6349 or leah@smallfarminstitute.org.

Feb. 12-14 -- World Ag Expo, Tulare, CA. Learn more online at www.worldagexpo.com/index.html.

Feb. 15-16 -- Indiana Forage Council Meeting/Indiana Cattle & Forage Symposium, Indianapolis Marriott East Hotel. Contact Keith Johnson at johnsonk@purdue.edu.

Feb. 21 -- Kentucky Alfalfa Conference, Cave City. Contact Garry Lacefield at 270-365-7541, ext. 202, or visit www.uky.edu/Ag/Forage/.

Feb. 26 -- Southwest Missouri Spring Forage Conference, University Plaza Hotel, Springfield. Call 417-862-8085.

Feb. 26-27 -- Idaho Hay And Forage Conference, Burley Inn, Burley. Call Glenn Shewmaker at 208-736-3608.

March 4-6 -- Pennsylvania Professional Crop Producers Conference, Penn Stater Conference Center at Penn State University, State College, PA. Contact Marvin Hall at 814-863-1019.

March 19-20 -- 2008 Central Plains Dairy Expo, Sioux Falls Convention Center, Sioux Falls, SD. Visit www.centralplainsdairyexpo.com or call 218-236-8420.

Sept. 17-20 -- National Hay Association Convention, Oak Brook Hills Marriott, Oak Brook, IL. Contact Don Kieffer at 800-707-0014, or visit www.nationalhay.org.

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Comments from Readers
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Lora Berg, Editor, eHay Weekly,

hfg@hayandforage.com

For information on Hay & Forage Grower, contact:
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or
Fae Holin, Managing Editor, fholin@hayandforage.com

For specific information from past issues of eHay Weekly and Hay & Forage Grower, click on hayandforage.com, and use the search function in the upper right-hand corner of the homepage.

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