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 In Today's eHay Weekly
 January 12, 2010

Hay Stocks Increase 3%
RR Alfalfa Comments Flow In
Forage Challenge Entries Due Thursday
Midwest 2009 Hay Price Slide Detailed
Numbers Of Note
State Reports: Michigan, Oregon
Delmarva Conference Is Next Week
Grassland Farmers To Meet In Ohio
Calendar Of Events
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Top Of The News

Hay Stocks Increase 3%
U.S. growers harvested slightly more hay last year than in 2008, and less was fed last summer and fall due to lower cattle numbers. The result was 3% more hay stored on farms going into this winter than at the start of the previous one.

In its January Crop Production report, issued earlier today, USDA estimated Dec. 1, 2009, hay stocks at 107 million tons, up from 103.6 million tons on Dec. 1, 2008. Stocks increased in the Rocky Mountains, Pacific Northwest, northern Great Plains and the Southeast with the exception of Florida. Stocks decreased in the southern Great Plains and Great Lakes states.

Hay disappearance from May to December 2009 totaled 62.3 million tons compared with 64.2 million tons for the same period a year earlier.

USDA’s final estimate of the 2009 hay crop shows production of alfalfa and alfalfa mixtures at 71 million tons, up from 69.6 million tons in 2008. Acreage was estimated at 21.2 million compared with 20.98 million the previous year. The average yield was 3.35 and 3.32 tons/acre in 2009 and 2008, respectively. Production of other hay totaled 76.4 million tons last year, up from 76 million in 2008. The average yield was 1.98 tons/acre from 38.5 million acres harvested.




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RR Alfalfa Comments Flow In
Nearly 400 comments have already been made regarding the draft environmental impact statement (EIS) on Roundup Ready alfalfa. "We are getting a lot of comments,” says Andrea Huberty, USDA-APHIS project coordinator for the EIS.

She encourages even more, but cautions that, to be effective, comments need to refer back to the 1,476-page document or some part of it. The most effective remarks should "be clear and concise and, most importantly for us, be relevant to the analysis in the document," she says.

Huberty recommends reading A Citizen’s Guide to the NEPA: Having Your Voice Heard, or at least the section called "How to Comment," on page 27 of the pamphlet. It was published by the Council on Environmental Quality to explain the National Environmental Policy Act and can be viewed online at tinyurl.com/NEPAguide.

To download the draft EIS, visit tinyurl.com/RRAlfalfaEIS. To submit comments, go to tinyurl.com/RRcomment.

For more on how to comment effectively, visit hayandforage.com.




Forage Challenge Entries Due Thursday
If you want to enter the World Ag Expo Forage Challenge, you’ll have to hurry. The deadline – recently extended – is this Thursday, Jan. 14.

Farmers and ranchers from 11 states – Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming – are eligible to enter the contest. Entries will be judged in three categories: alfalfa hay, standard corn silage and brown midrib (BMR) corn silage. Results will be based on forage lab analyses performed by Cumberland Valley Analytical Services, Inc., and a visual evaluation of the entries will be conducted by experts in dairy nutrition and forage production.

First-place winners in each category will receive $2,000; second place, $1,500; and third place, $1,000. Winning entries will be on display at the 2010 World Ag Expo, scheduled for Feb. 9-11 at the International Agri-Center in Tulare, CA.

The entry fee for the contest is $25; download an entry form and contest rules.




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Midwest 2009 Hay Price Slide Detailed
Hay prices in the Upper Midwest during 2009 declined considerably from year-earlier levels, reports University of Wisconsin Extension educator Ken Barnett.

Averaged over all qualities, Barnett notes, small square bale prices declined from $155.29/ton in 2008 to $123.72/ton last year, a drop of 20%. Large square bale prices dropped by nearly 16% while large round bale prices decreased by almost 22%.

Barnett also reports that, averaged over all bale types, the price of prime hay (>151 RFV/RFQ) in the region declined by 16% last year. The Grade 1 (125-150 RFV/RFQ) price dropped by nearly 27%, and the Grade 2 (103-124 RFV/RFQ) price decreased by more than 28%.

Barnett compiled the numbers for the Jan. 1 edition of his Weekly Hay Market Demand and Price Report for the Upper Midwest.




Numbers Of Note
$12.75 Average U.S. all-milk price (per hundredweight) in 2009, reported by University of Wisconsin ag economist Bob Cropp in his December Dairy Situation and Outlook Report. That’s down $5.55/cwt from the 2008 average price. On the upside, Cropp expected the December price will be near $16, about $4.70 higher than the yearly low of $11.30 established in June and July.

34,378 Increase in the number of member families in the American Farm Bureau Federation (AFBF) during 2009. AFBF membership now tops 6.27 million families. With last year’s increase, the organization has now experienced 49 consecutive years of membership growth.

$143 million Value (estimated) of Mississippi’s hay crop in 2009, an 11% increase over that of the year before. According to a report from Mississippi State University, hay was the only crop in the state to increase in value last year.

$3.5 billion Crop and livestock losses due to drought in Texas during 2009, according to Texas Agrilife Extension Service economists.




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State Reports: Michigan, Oregon
Michigan
Horse hay sales were slow in Michigan’s Thumb area in late 2009, reports commercial hay grower Mike Lauwers, owner of Lauwers Alfalfa and Straw near Capac. “It’s been tough,” he reports. “With the slow general economy, a lot of people have been putting off hay purchases and just buying hand to mouth. We still have a pretty good supply left.”

Last year, Lauwers devoted 400 acres to producing grass hay (orchardgrass and timothy) and alfalfa-grass mixed hay for the horse market. He also put up alfalfa baleage on another 350 acres, marketing it to dairies in Michigan and Ohio. All of his hay is packaged in large square bales.

Due to a cool growing season, Lauwers says, yields across the board were off by an average of 1.5 tons/acre from previous years. “On the other hand, we had very high quality. A lot of our first cutting looked like second-cutting hay.”

Currently, second-cutting grass hay in his area is fetching around $160/ton. “That’s down around $20/ton from a year ago,” he says. “Things could pick up a little bit as the supply of small squares works its way down. People are going to need hay.”

Lauwers plans to fine-tune his marketing strategy in 2010. “For awhile, we considered going back to making small square bales,” he says. “But we’ve decided against it for now. You can just get a lot more done with a lot less labor when you put up the large squares. Instead, we’ll do a little more advertising aimed at places with 40-80 horses. If we can get people to put a pencil to it, we think they’ll see there are a lot of advantages to going with the large bales.”

As for the alfalfa baleage, Lauwers says he’s already sold most of his four cuttings. The going price for hay testing 185 or above on relative forage quality (RFQ) is around $180/ton. That’s off just slightly from year-ago levels. “The supply of top-quality dairy hay seems to be tightening up. We might have gotten a little more for it by waiting to sell, but I really don’t like to do that.”

To contact Lauwers, call 810-343-0671 or email slauwers@airadvantage.net.

Oregon
Christmas Valley hay grower John Flowerree expects hay prices to bump up slightly in the year ahead for one simple reason: Last year was an incredibly tough year. “Prices fell back to levels we haven’t seen for 20 years,” he says. “That means a lot of people will be plowing up their hay ground. They can’t make any money at the current price.

“I’ve been in this business 30 years, and that’s the way it always seems to work. You get a real bad year, people quit growing it and then the price comes back.”

Flowerree works about 1,800 acres of hay ground. Alfalfa – including 250 acres of organic alfalfa – accounts for about 75% of his production. He also grows a variety of grass hays and some oat hay.

Most of his alfalfa is packaged in three-tie, 140-lb bales destined for export to Pacific Rim countries. He says top-of-the-line alfalfa export hay was bringing around $150/ton in late 2009, down roughly $85/ton from the market high of 2008. “Export demand held up pretty well compared to domestic demand. We can grow a high-quality, very palatable hay that appeals to dairy producers in Japan and other countries in that region.”

Flowerree believes prices for conventional hay could go up by at least 20% in the year ahead. “They’ll strengthen somewhat due to a lower supply. But I don’t see them getting back to 2008 levels anytime soon.”

He’s less optimistic about the price prospects for organic alfalfa hay. “Prices dropped off by $100/ton or more this last year,” he says. “Couple that with the yield cut you have (compared to conventional hay), and it’s just not worth the trouble.”

His current game plan is to cut back on organic production by around 50%. “We won’t get completely out of it because we have some longtime customers who are counting on us. They stuck with us when times were rough, and we feel like we need to stick with them now. I wouldn’t be surprised, though, to see a lot of people get out of it entirely.”

To contact Flowerree, email john@flowerreefarms.com.




Events

Delmarva Conference Is Next Week
The Delmarva Hay and Pasture Conference will take place Jan. 19 at the ACE Building of the Delaware State Fairgrounds, Harrington. The conference, which runs from 8:45 a.m. to 4 p.m., is being held as part of Delaware Agriculture Week.

Agenda topics will include: pasture and hay weed control, forage management practices as they relate to plant growth and pasture management, identifying plants toxic to horses, and extending the grazing season.

For more information, call 302-730-4000.




Grassland Farmers To Meet In Ohio
The 2010 Heart of America Grazing Conference, a multistate meeting of grassland farmers, is scheduled for Jan. 20-21 at the Roberts Center in Wilmington, OH.

Along with presentations by nationally acclaimed researchers and producers, the conference will feature breakout sessions focusing on beef, sheep and goat, dairy and advanced grazing management. There will also be commercial exhibits. The annual conference rotates among five states: Illinois, Indiana, Kentucky, Missouri and Ohio.

The registration fee is $65 and includes dinner, lunch and breaks. The one-day registration fee is $25 for Jan. 20 and $45 for Jan. 21. Get a conference brochure and registration form.




Calendar Of Events
Jan. 13 -- Kansas Hay And Grazing Conference, Kansas Farm Bureau building, Manhattan, sponsored by K-State Research and Extension and the Kansas Forage & Grassland Council (KFGC). Register at 8:30 a.m. Program starts at 9:30 a.m. A $45 registration fee includes KFGC membership. Call 620-431-1530 or email kwalters@ksu.edu.

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. 13-15 -- Ag Connect Expo, Orange County Convention Center, Orlando, FL. Visit www.agconnect.com.

Jan. 16 -- Winter Regional Horse Owner Program, Rochester Community and Technical College Heintz Center, Rochester, MN. Registration deadline is Jan. 13. Register online.

Jan. 19-21 -- North Carolina Forage And Grassland Council Mid-Winter Conferences, on efficient management of diverse forage resources, starting at 1 p.m. at three locations: Jan. 19, Nash County Extension Office, Nashville; Jan. 20, Union County Extension Office, Monroe; Jan. 21, Mountain Research Center, Fletcher. Register by Jan. 10 by calling 919-552-9111. For details, call 800-896-4857 or 919-609-9824.

Jan. 20 -- Southern Maryland Hay And Pasture Conference, Izaak Walton League Center, Waldorf, MD. Visit the University of Maryland Forages Program Web site.

Jan. 21 -- Tri-State Hay And Pasture Conference, Garrett College, McHenry, MD. Get details.

Jan. 21-22 -- I-29 Dairy Conference, Best Western Ramkota Inn & Conference Center, Sioux Falls, SD. See a conference brochure.

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.

Jan. 26-27 -- Midwest Forage Association, Wisconsin Custom Operators And Professional Nutrient Applicators Symposium And Annual Meetings, Chula Vista Resort, Wisconsin Dells, WI. Contact the Midwest Forage Association.

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

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, at various state locations. Feb. 8, Holiday Inn, Detroit Lakes; Feb. 9, Cromwell Pavilion, Cromwell; Feb. 10, Joseph’s Restaurant, Avon; Feb. 11, Southwest Research & Outreach Center, Lamberton; Feb. 12, UCR Heintz Center, Rochester. Call 651-484-3888 or visit the University of Minnesota forage Web site.

Feb. 9-11 – World Ag Expo, Tulare, CA, starting at 9 a.m. each day. Cost: $12/day. Visit www.worldagexpo.com.

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.

March 4-6: U.S. Custom Harvesters Inc. Annual Convention, Howard Johnson Plaza Hotel, Wichita Falls, TX. Visit www.uschi.com.

March 5-6 -- Maryland Cattle Industry Convention/Hay And Pasture Conference, Hagerstown Hotel and Convention Center, Hagerstown. Contact Les Vough at vough@umd.edu or 301-405-1322.

March 10-11 -- Wichita Falls, TX, Ranch & Farm Expo, JS Bridwell Ag Center, Wichita Falls. Visit www.wichitafallsranchandfarmexpo.net, call 866-685-0989 or email dales@bwtelcom.net.

March 27 -- Winter Regional Horse Owner Program, Cloquet Forestry Center, Cloquet, MN. Registration deadline is March 24. Register online.

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

April 16-18 -- 2010 Midwest Horse Fair, Alliant Energy Center, Madison, WI. Get more details.

April 23-25 -- Minnesota Horse Expo, Minnesota State Fairgrounds, St. Paul. Email glen@mnhorseexpo.org or call 952-356-2090.

June 21-23 -- American Forage And Grassland Council Annual Conference, University Plaza Hotel, Springfield, MO. Details at www.afgc.org.

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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