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 In Today's eHay Weekly
 October 14, 2008

Prepping For Future Drives Equipment Sales
USDA Raises Hay Production Estimate
Control Thistles Now
Avoid Prussic Acid Poisoning After Frost
Fuel Prices: Little Change For Next Year
State Reports: Illinois, Missouri
Wyoming AgXpo Set For Nov. 20-23
Calendar Of Events
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Top Of The News

Prepping For Future Drives Equipment Sales
With hay prices strong, North American growers are reinvesting at least some of their profits in new equipment, says Dan Belzer, marketing director for Vermeer Corp, Pella, IA. Vermeer manufactures a full line of haying and hay handling equipment. “People see this as a smart time to utilize the dollars they’ve made this year to make improvement in their operations for the long term,” says Belzer.

Most noticeable, he says, is a growing appreciation for top-quality hay on the part of growers. “They’ve been seeing the value in high-quality hay and want equipment that will help them capture some of that value,” he says. “We’ve had a lot of interest in bale processors and round balers with scales and moisture sensors. Producers understand they have to know what is in that bale package in order to sell it a higher price.”

Derek Friesen, marketing director at PhiBer Manufacturing in Crystal City, Manitoba, notes that, as of the end of September, orders for PhiBer’s large square bale accumulators were running 100% ahead of year-earlier levels. The company also makes mergers, turners and bale processors. “It’s a very strong market right now,” says Friesen.

The flurry of activity has created a backlog throughout the marketing chain. “Suppliers are having a tough time keeping up,” says Friesen. “For example, we’ve been waiting up to six months for castings.” His advice to growers contemplating equipment purchases is to place orders early. “If you don’t order by Christmas on some product lines, you’re probably not going to get what you want in time for first cut,” he says.

Santiago Aguirre, sales consultant at Booth Machinery Inc., a Case IH dealership in Yuma, AZ, says he’s been advising customers that orders for tractors and other implements placed today may not be filled for four to six months depending on make and model. “Manufacturers are running on a really tight schedule, making what they need to fill orders and no more,” he says. “At the same time, most dealers are working to keep their inventories low. If I knew I needed something new, I wouldn’t wait too long to get my order placed.”

Keep in mind, though, specifics can vary widely among dealerships. Jay Monson of Value Implement, a New Holland dealership in Baldwin, WI, says late-arriving hay and forage equipment orders earlier this year have put his dealership in a good position to meet customer needs in late 2008 and early 2009. “We have a pretty good inventory on hand now, and it’s a better-priced inventory because everything has gone up since those shipments came in,” he says.

Contact Belzer by email at dbelzer@vermeer.com; Friesen at derek@phibercanada.com; Aguirre at saguirre@boothmachinerinc.com; and Monson at jmonson@valueimplement.com.




USDA Raises Hay Production Estimate
USDA has upped its projection for U.S. hay production in 2008. In Friday’s Crop Production Report, USDA forecast dry hay production of alfalfa and alfalfa mixtures at 71.4 million tons. That’s up 1% from the August forecast, but down 2% from last year’s production.

Based on Oct. 1 conditions, USDA says yields of alfalfa and alfalfa mixtures are expected to average 3.44 tons/acre this year, up 0.03 ton from August and 0.09 ton from the 2007 figure. Late rains, which helped final cuttings, pushed up the yield forecast in Kansas, Oklahoma, South Dakota and North Dakota. In the Corn Belt states, yield forecasts were unchanged or lower compared to those of the previous month. Yield forecasts were down in Washington and Oregon.

USDA also raised its production forecast for other hay to 79.1 million tons, up 1% from the August forecast and 2% from last year’s production. Based on Oct. 1 conditions, the agency expects yields to average 1.99 tons/acre this year. That’s up 0.05 ton from the August forecast and 0.04 ton from the 2007 number.




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Control Thistles Now
Late October-early November is one of the best times for applying herbicides to control thistles in pastures, says Bruce Anderson, University of Nebraska extension forage specialist.

“At this time of year, thistles will be small and in a flat, rosette growth form,” he says. “At this growth stage, they are very sensitive to certain herbicides, reducing potential problems next spring when there’s less time to deal with them.”

Anderson says a new herbicide, Milestone, may be one of the most effective thistle-control products. Tordon 22K and Grazon can also be effective. “Be careful with these products, though, as they also can kill woody plants, including trees,” says Anderson.

If weather stays on the warm side, 2,4-D is an option. “You will get better thistle control by using a little less 2,4-D and adding a small amount of Banvel to the mix,” he says. Other herbicides like Redeem, Ally and Curtail will also help control pasture thistles, notes Anderson.




Avoid Prussic Acid Poisoning After Frost
Removing livestock from pastures for several days after a frost is the best bet for preventing prussic acid poisoning in sudangrass and sorghum-sudangrass pastures, says Steve Barnhart, Iowa State University extension forage specialist. According to Barnhart, livestock can be returned to frost-injured sudangrass 18” tall or taller and sorghum-sudandrass that’s at least 30” tall after about three or four days. If the grass is shorter than those heights when frost damage occurs, Barnhart recommends keeping sheep and cattle off the pasture for 10 days to two weeks. He also advises watching for new shoot regrowth (tillers or suckers) on partially frost-killed plants. “Direct grazing of these fresh new shoots can be toxic, too,” he says. “Where new shoots appear following frost, avoid grazing until two weeks after the frost that kills the new shoots.”

Barnhart notes that prussic acid poisoning is not common in Iowa and very few verified cases are reported by veterinarians. “Maybe producers here are just using good management,” he says. Even so, he adds, producers should consider the recommendations above to be “at the low-risk or conservative level.”

For a more complete discussion on dealing with prussic acid toxicity, see “Fall Frost Effects of Forage” at www.extension.iastate.edu/cropnews/.




Fuel Prices: Little Change For Next Year
The U.S. Energy Information Agency projects that regular-grade gasoline prices will average $3.56/gal in both 2008 and 2009. In a report issued last week, EIA estimated total U.S. gasoline inventories at 180 million barrels, 23 million barrels below the five-year average and the lowest since August 1967. Next year, EIA expects inventories will recover to 205 million barrels, about four million barrels below the previous five-year average. The change will be due to continued weakness in motor gasoline markets and growth in domestic fuel ethanol production. EIA also projects on-highway diesel fuel retail prices will average $3.91/gal in 2009, down from a projected $4.01/gal this year. To see the full report for October, go to www.eia.doe.gov/emeu/steo/pub/contents.html.



State Reports: Illinois, Missouri
Illinois
Doing well in a high-profile hay-quality contest can produce positive marketing results, says Kendall Guither, Walnut, IL. For the second year in a row, Guither grabbed top honors in the commercial baleage category at the recent World’s Forage Analysis Superbowl. “It’s hard to measure, but we think it has a positive effect overall,” he says. “Our existing customers seem to get a kick out of it when we do well. We’ll get phone calls and emails from them letting us know that they heard about it.

“Doing well in the contest also indicates to people that we know how to put up a top-quality hay product. Other than word of mouth, where our customers tell other people about us, we haven’t done any kind of formal advertising for 15 years.”

Guither devoted 415 acres to alfalfa hay production this year, putting up 6,500, 3 x 3’ square bales in six cuttings. All but 120 bales (two semi loads) were put up as baleage. “Putting up dry hay this year was just about impossible with the weather we had,” he says. “We were wet early and got started about two and a half weeks later than normal. Things dried out a little bit in July and August, but in September we got 8” of rain.”

Guither’s primary market is dairy farms in Illinois and surrounding states. While taking six cuttings means giving up some tonnage, Guither feels he gains by getting an extra cutting or two each year. “I’ve learned over the years that it’s not how many pounds of feed you harvest that counts,” he says. “What’s really important is how many pounds of digestible feed you can deliver to your customers.”

To contact Guither, phone 815-878-5175 or email kguither@cin.net.

Missouri
Haymaking equipment has been moving over the landscape at an unprecedented pace for this time of year in the Show-Me State. “It’s pretty unbelievable,” says Tony Hancock, market reporter with the Missouri Department of Agriculture-USDA Market News Service in Jefferson City. “We’re seeing fields harvested for hay that have never been harvested before.”

In southwestern Missouri, some producers have been able to take three cuttings of fescue this season. “That’s unheard of,” says Hancock. Haymakers in the northern part of the state have been equally busy this fall. Hancock attributes the flurry of activity to a delayed grain harvest brought on by very odd weather this growing season. “People would ordinarily be well into harvest in that part of the state right now,” he notes. “Since they can’t do that, they have been filling their time by putting up hay.”

Hay movement has been extremely light. “There are a few loads moving here and there,” Hancock says. “But overall it’s pretty slim.”

What’s more, movement may not pick up until early winter. “When you drive around the back roads, there appears to be a lot fewer cows out on pasture. Also, the pastures are lush so producers who still have cattle aren’t feeding hay, the general economy is hurting and people are waiting to see if dropping fuel costs will eventually translate into better freight rates. In short, nobody is in a hurry to buy hay right now.”

Net effect, Hancock says, is that a supply glut of beef-quality grass hay will almost surely lead to a significant price drop later this year. “There’s just too much hay out there,” he says. “To get it moving, it may have to be sold at a price below the cost of production if other protein sources, such as corn, continue to fall.”

Dairy-quality alfalfa hay isn’t immune from a price drop, either. “Up to this point, prices have stayed high because there isn’t any of it out there,” says Hancock. “But if corn prices (off 50% from early summer’s record highs) continue to drop, dairy producers will start feeding more of it and buy lower-quality grass hay for roughage.”

To contact Hancock, phone 573-751-5618 or email tony.hancock@mda.mo.gov.




Events

Wyoming AgXpo Set For Nov. 20-23
Forages will be a big part of the Wyoming AgXpo, to be held Nov. 20-23 at the Central Wyoming Fairgrounds, Casper. Seminars on alfalfa production and use in livestock diets, a hay contest for growers, a session on educating the general public and commercial ag exhibits will also be featured. Seminars on wind power and marketing, open-pen livestock exhibits and horse-training clinics are on the schedule, too.

For more information, visit wyoagexpo.com.




Calendar Of Events
Oct. 14-16 -- Southeastern Hay Contest, Sunbelt Agriculture Exposition, Moultrie, GA. For guidelines and entry form, visit www.caes.uga.edu/commodities/fieldcrops/forages/events/SEHC/SEHC.html.

Oct. 16 -- Arkansas Extension Clover Pastures Field Day, Larry Wells Farm, Drasco, AR. Contact Cleburne County Extension at 501-362-2524.

Oct. 23 -- Kentucky Grazing Conference, Fayette County extension office, Lexington. Learn more at www.uky.edu/Ag/Forage/.

Oct. 23 -- Arkansas Extension Clover Pastures Field Day, Steve Swenson Farm, Shirley, AR. For more information, contact Van Buren County Extension at 501-745-7117.

Oct. 31-Nov. 2 -- Virginia Equine Extravaganza, Richmond Raceway, Richmond. Learn more at www.equineextravaganza.com.

Nov. 6-7 -- 2008 BEEF Quality Summit, sponsored by BEEF magazine, Antlers Hilton Hotel, Colorado Springs, CO. Visit beefconference.com/.

Nov. 13-16 -- Massachusetts Equine Affaire, Eastern States Exposition Center, West Springfield. Visit www.equineaffaire.com.

Dec. 2-4 -- California Alfalfa & Forage Symposium And Western Alfalfa Seed Conference, Town & Country Resort and Hotel, San Diego. Learn more at alfalfa.ucdavis.edu/+symposium/2008/.

Dec. 5-6 -- 2008 Missouri Livestock Symposium, Kirksville. Programs for horse, beef cattle, sheep, meat goat and forage producers, and trade show. Details at missourilivestock.com or call Bruce Lane at 660-665-9866 or Garry Mathes at 660-341-6625.

Jan. 15-16 -- Southwest Hay And Forage Conference, Ruidoso, NM. Contact Gina Sterrett at 575-626-5677 or Justin Boswell at 575-840-9908.

Jan. 21-22 -- Heart Of America Grazing Conference, Columbus, IN. Contact Jason Tower at 812-678-4427 or towerj@purdue.edu.

Feb. 3-4 -- Idaho Hay And Forage Conference, Burley. Call Glenn Shewmaker at 208-736-3608.

Feb. 3-4 -- Mid-America Alfalfa Expo, Buffalo County Fairgrounds, Kearney, NE. Contact Barb Kinnan at 800-743-1649 or nebalf@cozadtel.net.

Feb. 19 -- Kentucky Alfalfa Conference, Cave City Convention Center. E-mail glacefie@kyu.edu or raysmith1@uky.edu.

June 21-23 -- American Forage & Grassland Council Annual Conference, Amway Grand Plaza Hotel, Grand Rapids, MI. Call 800-944-2342 or email info@afgc.org.




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