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 In Today's eHay Weekly
 December 8, 2009

Horse Hay Sales: Better Times Ahead
Seller No Shows At Wisconsin Sale
Hay Site Offers Free Listings
Time For End-Of-Year Planning
Simply Stated
State Reports: Nevada, South Dakota
Wisconsin Symposium Is Next Month
Calendar Of Events
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Top Of The News

Horse Hay Sales: Better Times Ahead
A shrinking U.S. horse population is playing a role in the lackluster horse hay sales reported by hay growers and dealers in many parts of the country during 2009. But other factors are likely having a bigger impact, says Anne Rodiek, an equine specialist with California State University, Fresno.

“A decline in horse numbers has no doubt contributed to a downturn in horse hay sales,” says Rodiek. “But the price of hay in last year’s hay market was likely the biggest cause of the downturn in horse numbers. More than one person has cited last year’s hay price as the last straw that led horse businesses to close their doors and convinced horse owners to either get rid of a horse or forego purchasing or raising another one.”

The severe downturn in the general economy has also been a factor. Along with buying less hay, many horse owners have made changes in the way they feed their animals. “(They’re) trying to stretch the hay they do buy farther,” says Rodiek. “They’re feeding more conservatively, by the flake instead of the bale, and avoiding any overfeeding. Uneaten hay is no longer allowed to contribute to bedding or to fill in muddy places in fields or paddocks.”

Other steps horse owners are taking to cut feed costs include buying bagged forage and/or feeding pellets out of a feeder or pail. “There’s less shrink than when feeding broken bales,” notes Rodiek. Some horses are being fed lawn clippings or are being shipped from urban areas to more rural settings where pasture or volunteer grass can be used for feed.

Long-term, Rodiek is optimistic about the future of the horse and hay industries in her part of the country. “Horses have to eat, and there are few alternatives to hay in the arid Western states,” she says. “People own horses because they like them and often will sacrifice many other luxuries before the horse. Even a moderate return to prosperity, coupled with reasonable hay prices, will likely cause these industries to rebound.”

Editor’s Note: Rodiek was one of the speakers at last week’s Western Alfalfa and Forage Symposium in Reno, NV.




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Seller No Shows At Wisconsin Sale
The quality-tested hay auction season got off to a bumpy start at the Dodge County Forage Council’s (DCFC) first sale of the year in Beaver Dam, WI, last Tuesday. “We had a number of buyers on hand, but zero sellers,” reports Matt Hanson, crops and soils agent for University of Wisconsin Extension-Dodge County.

An overall shortage of hay in the area was likely the major factor keeping sellers away from the auction, says Hanson. “It was a challenging summer for putting up hay here. We had cool temperatures mixed in with dry weather for most of the season. Tonnage was down across the board, and that has us in a tight inventory situation. I’ve been getting a lot of calls from people looking for hay.”

Hanson also suspects some sellers may have bypassed the auction, anticipating higher prices later in the winter. “With supplies so short, people might be thinking they’ll hold off on selling now and try to get a premium price in February or March.”

Good weather on auction day may have also played a role. “It was a downright beautiful fall day for this time of year, and I suspect a lot of people were out in the field wrapping up their corn harvest and fall tillage,” says Hanson. “It was frustrating, but also understandable.”

The next tested auction in Beaver Dam is scheduled for Tuesday, Dec. 15. Followup DCFC auctions are scheduled for the first and third Tuesdays of the month through the first week of April. Sales are held at the Beaver Dam Auction Market. Hanson encourages hay sellers interested in participating in upcoming auctions to call him at 920-386-3790. He advises potential buyers and sellers to check the DCFC Web site for auction updates.




Hay Site Offers Free Listings
LocalEquineServices.com, a Web site geared toward helping horse owners find hay, bedding material and other products within specific geographic locations, is offering hay sellers a free listing on the site for all of 2010. To take advantage of the offer, sign up by Dec. 31.

Up to this point, sellers have paid $40 for a one-year listing on the site. “This has been a tough year for everyone connected with the horse industry,” says site founder Jenn Reinford of Boyertown, PA. She notes that hay sellers already using the site will also list for free throughout 2010. “Especially now, no one has a red cent to spare. This seems like a good way to get more people using the site.”

A radius-search function is the key feature of the site. A potential buyer enters his zip code, then selects a mileage radius of where he’d like to conduct the search. The search engine almost instantly generates a printable list of sellers within the radius. “There are lots of Internet sites for buying and selling hay,” says Reinford. “But buyers get tired of searching through list after list of data trying to find exactly what they want in a specific area. With this site, they do a few keystrokes and within seconds they have the information they’re looking for.”

Along with a description of the product, a seller can use the listing to create a link to his or her own Web site and email. The seller can also track the number of hits generated by the listing.

Reinford, a senior solutions engineer with an office printing and document management company, launched the site in her spare time in 2006 under the name LocalHayPrices.com. She changed the name to LocalEquineServices.com last year to reflect the fact that a wide range of other products and services of interest to horse owners are also listed on the site.

To contact Reinford, call 610-906-6235 or email jenn@localequineservices.com.




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Time For End-Of-Year Planning
With the pressures of the growing season behind you, now is a good to time to do a year-end checkup on the farm business. Parman Green, University of Missouri Extension ag business management specialist, recommends the following steps:

  • Bring recordkeeping for the business up to date.
  • Make two lists to use with your year-to-date profit-and-loss report. One list will detail income and expenses that will definitely be received or paid prior to year-end. The second list will cover income and expenses that could be received or paid prior to the end of the year.
  • Analyze any non-recurring or abnormally large anticipated receipts or expenditures for next year. Questions to ask: Are you planning to carry over an unusually large quantity of grain or livestock? Are you planning to incur any unusually large expenditures for conservation practices, fencing, lime, business expansion, etc.?
  • Review Social Security management strategies for yourself and your spouse. Do you both have sufficient quarters of earnings during the last 10 years to qualify for disability benefits?
  • Complete all desired 2009 gift transfers before year’s end. The annual gift exclusion ($13,000 per recipient) continues to be one of the most effective and efficient estate planning tools. Be sure to complete all 2009 gift transfers before the end of the year.
  • Review and make sure your income, risk, business, retirement and estate management goals and objectives are all being addressed in a coordinated fashion.
  • Meet with your tax return preparer before Dec. 31 to make sure everyone is on the same page. Doing so will help avoid costly surprises and ensure sufficient time is available to evaluate alternative strategies.




Simply Stated
“Every day (dairy farmers) are losing money. Presently, they’re drawing on bank accounts, they’re eroding their equity and building up extremely large debts. Some of them won’t survive.” – Milton, PA, dairy producer Robert Pardoe, describing how slumping milk prices impact local milk producers. Source: Milton Standard-Journal.

“I call it the tree hugger special. It’s just hay and wood, and it’s very cool to me.” – Artist Pat Fallier, commenting on a hay bale house he’s building near Andover, KS. The hay bales are used for insulation. Source: Kwch.com.




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State Reports: Nevada, South Dakota
Nevada
Members of Nevada Hay Growers Inc. cooperative got hit with a double whammy in 2009. Not only did poor growing weather on both ends of the season crimp yields for many of the co-op’s 100 members, a slumping dairy economy translated into a dramatic drop-off in demand for high-quality alfalfa hay, the co-op’s No. 1-selling product.

Net result: The co-op, based in Yerington, NV, has seen a steep decline in sales. “Our annual sales are usually around 100,000/tons,” says sales manager Jon Hill. He notes that, along with alfalfa, members also produce grass and grain hay. “This year we could be as much as 20,000 tons below that. It was definitely a tough year for us, just like it was a tough year for a lot of other industries.”

Slack demand from dairy customers also translated into a major price downturn. Hill notes that top-quality alfalfa hay (180 RFV and up) in the area is currently selling for around $130/ton at the stack. That’s down around $100/ton from last year’s high.

On the upside, Hill believes the stage could be set for a price upswing this winter. “Milk prices have been improving over the last couple of months, and dairy producers have started buying again. Also, we’re really short on good milk-cow hay. We just didn’t have a lot of that super, candy-looking stuff put up this year. That should help prices as we go along, too.”

To contact Hill, call 775-221-3286 or email jonh@hotmail.com.

South Dakota
After an unusually wet fall, things are finally starting to dry out in northeastern South Dakota, reports Tyler Melroe, Extension livestock educator in Marshall County. “The rain started in late September, then just kept coming all through October. We had very few days of sunshine for the entire month. Our November weather was just great. But the ground is still pretty saturated in many places.”

The extended period of wet conditions turned many farm and ranch yards into muddy messes, making it difficult to deliver hay, silage and grain for winter storage. “Getting a crop harvested and out of the field was hard enough,” says Melroe. “Getting it into the yard was all but impossible in many cases. People are just starting to bring in their hay from the fields. But a lot of that work will be delayed because they’re more concerned about getting their grain crops harvested.”

Overall, he says, 2009 was a good year for growing hay in the area. “We had great weather for producing yields. We had plenty of moisture and a lot of cool weather that was good for our cool-season grasses and, to some extent, our alfalfa. There are some questions about quality, though. A lot of the hay that was put up had some sort of rain on it during harvesting.”

To contact Melroe, call 605-448-5171 or email tyler.melroe@sdstate.edu.




Events

Wisconsin Symposium Is Next Month
The Midwest Forage Association (MFA), Wisconsin Custom Operators and Professional Nutrient Applicators will hold their joint symposium and annual meeting at the Chula Vista Resort in Wisconsin Dells on Jan. 26-27.

Featured will be more than 30 educational sessions offered in a concurrent-session format. Financing in 2010, high-forage diets, the Wisconsin Alfalfa Yield and Persistence Project, an MFA research update and a session on field efficiency-cost effectiveness of harvesting forage are among presentation topics.

For details, see MFA’s Event Schedule.




Calendar Of Events
Dec. 9 -- 13th Annual University Of Wisconsin Arlington Dairy Day, Arlington Agricultural Research Station. Registration is $25/person through Nov. 25, then $35/person. For details, call 608-263-3308.

Dec. 10 -- 2009 Alabama Forage And Grassland Conference, University of West Alabama, Livingston. Contact Don Ball at 334-844-5491 or dball@aces.edu.

Dec. 13-16 -- Fourth National Conference On Grazing Lands, Reno, NV. Presented by the Grazing Lands Conservation Initiative. Visit www.glci.org.

Dec. 15 -- Mid-Missouri Grazing Conference, Boone County Fairgrounds, Columbia. For more information, contact Ed Gillmore or Peggy Lemons at 573-893-5188, ext. 3.

Jan. 13-14 -- Washington State Hay Growers Association Annual Convention And Trade Show, Three Rivers Convention Center, Kennewick. Details at www.wa-hay.org/convention.

Jan. 14-15 -- 2010 New Mexico Hay And Forage Conference, Ruidoso Convention Center, Ruidoso. Details at www.nmhay.com or call 575-626-5677.

Jan. 26-27 -- Midwest Forage Association, Wisconsin Custom Operators and Professional Nutrient Applicators Symposium And Annual Meetings, Chula Vista Resort, Wisconsin Dells, WI. For details, visit the Midwest Forage Association Event Schedule.

Jan 25-28 – Virginia Forage And Grassland Council’s Winter Conferences at four locations. Jan. 25 – Brandy Station Fire Hall, Brandy Station; Jan. 26 – Mrs. Rowe’s Country Buffet, Mt. Crawford; Jan. 27 – Southern Piedmont Ag Research and Extension Center, Blackstone; Jan. 28 – Wytheville Meeting Center, Wytheville. Contact Margaret Kenney at 434-292-5331 or download the brochure here.

Jan. 28-29 -- North Central Ohio Dairy Grazing Conference, Buckeye Event Center, Dalton. Contact the Small Farm Institute. Download the brochure here.

Feb. 2-3 -- 2010 Mid-America Alfalfa Expo, Buffalo County Fairgrounds, Kearney, NE. For details, visit www.alfalfaexpo.com, call Barb Kinnan at 800-743-1649 or email her at nebalf@cozadtel.net.

Feb 8-12 -- Minnesota Forage Days, held at various locations throughout the state. Call 651-484-3888 or visit the University of Minnesota forage Web site for specific locations, dates and times.

Feb. 16-17 -- Idaho Hay And Forage Conference, Best Western Burley Inn, Burley. Contact Glenn Shewmaker at 208-736-3608 or gshew@uidaho.edu.

Feb. 18-20 -- 2010 Wisconsin Grazing Conference, Hotel Mead, Wisconsin Rapids. Visit www.grassworks.org or contact Heather Flashinski at 715-289-4896 or grassheather@hotmail.com.

April 8-9 -- Hay Production School, Spence Field, Moultrie, GA. Details at www.georgiaforages.com.

June 21-23 -- American Forage And Grassland Council Annual Conference, University Plaza Hotel, Springfield, MO. Details at the AFGC Web site.

Sept. 5-7 -- National Hay Association Annual Meeting, Griffin Gate Marriott Resort, Lexington, KY. Watch for details on the NHA Web site.



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