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 In Today's eHay Weekly
 February 17, 2009

Living With Drought In Texas
Cellulosic Ethanol: He’s Not A Fan
USDA Releases Feed Outlook Report
Quick Clicks
Numbers Of Note
State Reports: Colorado, Pennsylvania
Indiana Symposium Is Next Week
Calendar Of Events
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USDA Hay Prices

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Top Of The News

Living With Drought In Texas
Livestock producers in drought-stricken north-central Texas got a little relief from a 1” rainfall early last week. But more moisture is definitely needed to take pressure off hay supplies and prices, says Derek Scasta, extension agriculture agent in Navarro County. “We had an extremely dry fall,” says Scasta. “Before last week, we hadn’t had any significant rain since October. It’s definitely a tough situation for a lot of people.”

The overall lack of moisture has forced many livestock producers to begin supplemental feeding far earlier than normal this winter, Scasta notes. “If the drought conditions continue into the spring, a lot of people will have to look at making some pretty drastic decisions. This might include heavy culling or liquidating herds, finding grazing to lease, finding additional feed supplies or finding alternative water supplies for cattle.”

Some producers are comparing the current conditions to the devastating drought of 2006, he adds. “There’s a lot of hay moving up and down the road. We’ve heard some reports of producers going down the road with loads of hay on a trailer or moving bales across fields with a bale spear and getting stopped by people wanting to buy the hay on the spot.”

Shane McLellan, extension ag agent in nearby McLennan County, reports prices for grass hay packaged in 700- to 1,000-lb round bales have bumped up by $10-15/bale in recent weeks and are currently bringing $50-55/bale. “There still is some good-quality hay left over from the 2007 season,” says McLellan. “But for the most part, people are taking anything they can get. We’re essentially seeing lower-quality hay go for higher prices. They’re having to bring in hay from farther away, so transportation costs are eating them up, too.”

The latest report from the U.S. Drought Monitor shows drought conditions exist in two-thirds of the state, up from 25% one month ago. The U.S. Seasonal Drought Outlook, released by the National Weather Service on Feb. 5 predicts that the drought could intensify and expand in Texas and parts of neighboring states over the next several months.

The Texas Department of Agriculture maintains a hay and grazing hotline to connect buyers and sellers. For more details, call 877-429-1998 or go to www.agr.state.tx.us.




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Cellulosic Ethanol: He’s Not A Fan
It’s time to challenge the notion that cellulosic ethanol would have less impact on food production and food prices than corn ethanol, says Matthew Roberts, Ohio State University extension grain marketing specialist. “Cellulosic ethanol cracks me up,” Roberts told attendees at the recent annual meeting of the Wisconsin Dairy Business Association in Green Bay. “I call it ‘tooth fairy’ ethanol, because there are as many people in this country who have seen the tooth fairy as have seen cellulosic ethanol produced on a commercial scale.”
Click here to read the rest of this story.




USDA Releases Feed Outlook Report
USDA has recalculated its estimate of roughage-consuming animal units (RCAU) in the U.S. for the 2008/09 marketing year. According to last week’s Feed Outlook report, RCAU units are now projected at 70.85 million units, down 1% from the 2007/08 number. Hay stocks per RCAU are projected to be 1.463 tons for 2008/09, up from 1.456 tons a year earlier.

The report also notes that all-hay prices for May 2008-January 2009 averaged $155.56/ton, up from $127/ton in the same period a year earlier. Prices received for alfalfa hay during May 2008-January 2009 averaged $169.33/ton, up from $136.44 a year earlier. Other hay prices averaged $122.56/ton, up from $109.67 last year.




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Quick Clicks
  • Proceedings from January’s 14th annual Forages at Kentucky Cattlemen’s Association Symposium are now available online at www.uky.edu.

  • Results from six alfalfa variety trials conducted in central Washington during 2008 have been posted at www.wa-hay.org/. The variety trials are a joint effort of the Washington State Hay Growers Association and Washington State University Extension.

  • On-highway diesel fuel retail prices, which averaged $3.79/gallon in 2008, are projected to average $2.28/gallon in 2009 and $2.55 in 2010, according to last week’s U.S. Department of Energy Short-Term Energy Outlook. For a complete summary, go to www.eia.doe.gov/steo.



  • Numbers Of Note
    2 – Minnesota men killed last week while unloading round hay bales from a trailer.
    5 – states (South Carolina, Georgia, Texas, California, Hawaii) with areas in extreme drought, according to the U.S. Drought Monitor.
    21 – pages in a report from USDA’s Economic Research Service titled “Factors Contributing To The Recent Increase In U.S. Fertilizer Prices, 2002-2008". For the full report, visit www.ers.usda.gov/Publications/AR33/.
    164 – $/ton price for the top-selling hay load at last week’s Dodge Council Forage Council quality-tested hay auction in Beaver Dam, WI. For all the sale results, go to www.widcfc.com.
    100,000 – horses being abandoned at horse auctions or “dumped” onto public lands nationwide due to high hay/feed prices and the bad economy, according to Utah state senator Dennis Stowell. The Utah State Legislature is considering a resolution calling on the U.S. Congress to discontinue work on a bill making it illegal to send horses to other countries for slaughter.




    State Reports: Colorado, Pennsylvania

    Colorado
    Irrigated hay growers in parts of the state are starting to get nervous about the decreasing snowpack, says Kinley Smotherman, market reporter for the USDA-Colorado Department of Ag Market News in Greeley.

    Early February figures showed mountain snowpack at 114% statewide compared to average for this time of year, according to Smotherman. Average snowfall early in the season has been followed by recent sporadic snowfalls. “But it has been decreasing as the season has progressed, and that’s a huge concern for irrigated growers, especially on the eastern side of the state. They’re definitely hoping to see more moisture. It could still happen. March and April are historically our snowiest months.”

    The high-quality alfalfa dairy hay market has been idle in recent weeks, she says. “A lot of what is moving comes from contracts made early in the growing season.” Record-low milk prices have also put a lid on demand.

    On another front, Smotherman notes that grass horse hay supplies are tightening in many parts of the state. “The growers I talk to say they’re getting a lot more phone calls. You can find it, but you have to search for it.” Currently, small square bales, in the 60- to 70-lb range, are fetching around $8/bale, up $1-2 from year-ago levels.

    Livestock producers needing hay should check out the 2009 Colorado Hay Directory available on the Colorado Hay and Forage Association Web site at www.coloradohay.org/, Smotherman says. Along with regional and county listings of Colorado growers, the directory also features a listing of companies and organizations providing hay-related products and services and a section of hay sampling tips.

    Call Smotherman at 970-353-9750 or e-mail her at kinley.smotherman@usda.gov.

    Pennsylvania
    Compared to that of a year ago, movement of top-quality alfalfa has dropped off in central Pennsylvania, says Ben Weist of Middleburg Livestock Auction in Middleburg. “It’s down 10-15% from where it was this time last year. It seems like a lot of people got scared last spring when prices were closer to $300/ton. They decided to stockpile and bought hay out of the field over the summer.”

    Currently, high-quality alfalfa is bringing around $150-175/ton. That’s down $100-125/ton compared to prices last spring, says Weist. Over the past two months, though, prices have been holding steady, even with the sharp drop in milk prices. “Dairy farmers know they still have to have good hay to get milk out of their cows,” he says. “On the other hand, prices for dry cow hay have dropped off. It’s now selling for under $100/ton.”

    Prices for horse hay have been holding steady, he says. “The real fancy grass hays are still bringing $180-200/ton. People who want just a good grass hay that’s not dusty can get it for $140-180/ton.”

    Middleburg Livestock Auction holds its hay auction year-round on Tuesdays. Start time is 11:30 a.m. Auction results are posted at www.middleburglivestock.com. Weist can be contacted at 570-837-2222.




    Events

    Indiana Symposium Is Next Week
    Animal behaviorist Temple Grandin will be the keynote speaker at this year’s Indiana Cattle & Forage Symposium to be held Feb. 27-28 at the Hilton Indianapolis North in Indianapolis.

    Along with Grandin’s presentation, scheduled for 11 a.m. on Feb. 28, the event will feature a trade show and presentations on reducing forage losses after storage, a producer panel on opportunities with annual forages, a forage spokesperson contest, expectations of a soil fertility program and using leadership to work with the non-ag community.

    For more information and/or to register, go to www.indianabeef.org or contact Ginny Tauer at 317-293-3333. The symposium is jointly sponsored by the Indiana Beef Cattle Association, Indiana Professional Dairy Producers, Milk Promotion Services of Indiana Inc., and the Indiana Forage Council.




    Calendar Of Events
    Feb. 18 -- Manitoba Forage Symposium, Southern Manitoba Convention Centre, Morris. Contact Dwayne Summach at 204-268-6014.

    Feb. 21 -- Horse Education Day, University of Wisconsin-River Falls Agriculture Building, jointly sponsored by University of Wisconsin Extension and University of Minnesota Extension. Contact Krishona Martinson at 612-625-6776 or krishona@umn.edu.

    Feb. 24 -- Southwest Missouri Spring Forage Conference, University Plaza Hotel, Springfield. Contact the Greene County SWCD at 417-831-5246, ext. 3.

    Feb. 27-28 -- Indiana Cattle And Forage Symposium, Hilton Indianapolis North, Indianapolis. Call 800-515-2333 or go to www.indianabeef.org.

    March 3-5 -- Intensive Alfalfa Training Seminar, Best Western Ramkota Hotel & Conference Center, Sioux Falls, SD. Cost: $400. Contact Laurie at 800-851-8810 (ext. 5712) or 651-765-5712 or email ljlehman@landolakes.com.

    March 5 -- Illinois Forage Institute, Del Curley Conference Center/Agri-King, Inc., Fulton. Phone 815-772-4075 or visit web.extension.uiuc.edu/rockfordcenter/ag.html.

    March 5-April 23 -- Georgia-South Carolina Regional Forage Training. Dates and locations: March 5 – Thomaston, GA; March 9 – Chester, SC; March 10 – Florence, SC; March 12 – Abbeville, SC; March 17 – Dalton, GA; March 23 – Ocilla, GA; April 23 – Carnesville, GA. Go to www.georgiaforages.com.

    March 6-7 -- Appalachian Grazing Conference, Morgantown, WV. Phone 304-293-6131, ext. 4231, or email becky.casteel@mail.wvu.edu.

    March 6-7 -- Joint Maryland Cattlemen's Convention/Central Maryland Hay & Pasture Conference, Four Points Sheraton, Hagerstown. Contact Scott Barao at 410-795-5309 or sbarao@marylandcattle.org, or Les Vough at 301-405-1322 or vough@umd.edu.

    March 12 -- Forage Technology Conference, Michigan State University Kellogg Hotel and Conference Center. Contact Richard Leep at 616-915-6353 or leep@msu.edu.

    March 17 -- Northeast Pennsylvania Grazing Conference, Tri-County Church, DuBois. Call 814-375-1372, ext. 4.

    March 31-April 1 -- Fencing For Controlled Grazing Systems, a hands-on fencing school conducted by the Virginia Forage and Grassland Council and Virginia Cooperative Extension. March 31 – Days Inn, Raphine, VA; April 1 – Southern Piedmont AREC, Blackstone, VA. Contact Gordon Groover at 540-231-5850 or xgrover@vt.edu.

    April 21 -- Georgia 2009 Hay Production School, Stuckey Auditorium, University of Georgia Griffin Campus. Go to www.georgiaforages.com.

    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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