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 In Today's eHay Weekly
 February 2, 2010

Dairy Hay In Demand At Tested Auctions
Microwave Moisture Meter Paints Wet Hay
Custom Operators: Take A Long-Term View
Simply Stated
Ammoniate To Boost Hay Quality? Maybe
State Reports: Illinois, Minnesota
Idaho Conference Is Feb. 16-17
Safe Transport Is Washington Meeting Topic
Calendar of Events
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Top Of The News

Dairy Hay In Demand At Tested Auctions
High-quality dairy hay appears to have been in short supply in the Upper Midwest during January, according to organizers and observers of quality-tested hay auctions in Wisconsin and Minnesota.

Fifty to 80 buyers attended each of the Dodge Council Forage Council (DCFC) sales in Beaver Dam during January, says Matt Hanson, University of Wisconsin Extension crops and soils agent. “Things are tight in the local area. Much of the hay around here was sold off the field this past year, so very little was put up into storage for a later sale.”

The auction picked up several new sellers in January, Hanson adds. “Many were from some distance away because of the local shortage. This year, we’re also seeing a greater mix of alfalfa, grasses, etc. Last year, it was pretty much alfalfa only.”

Auction prices dropped a little at the second sale in January, but were still over a dollar per relative feed value (RFV) point, he says.

Buyer interest was also relatively strong at the Sheboygan County Forage Council auction in January, says Mike Ballweg, Hanson’s counterpart in that county. “But only three lots of very low-quality hay were offered,” he says. “There were no buyers willing to pay the minimum seller price. Local supplies of high-quality hay are very short.”

In central Minnesota, prices at the twice-monthly tested auction in Sauk Centre have been relatively strong. That's despite tough weather that crimped attendance and “in light of the fact that milk prices have hardly moved to a break-even point,” says Dan Martens, county extension educator for Benton, Morrison and Stearns counties.

“We had a lot of nice weather for putting up good-quality hay,” says Martens. “But dry spring weather may have limited first-crop yields in some parts of the state and very wet weather was an issue in other areas.”

At the Jan. 7 sale in Sauk Centre, four loads of medium square alfalfa with RFV in the 176-200 range brought an average of $150/ton. The highest selling price at the sale was $170/ton – for a load of fourth-cutting alfalfa with an RFV of 200 and also for a second-cutting load with an RFV of 158.

The remaining schedule for the auctions:
Dodge County, WI – First and third Tuesdays of each month through the first week of April, Beaver Dam, WI – Visit the DCFC Web site.
Sheboygan County, WI – Second Wednesday of each month through April, Chissy’s Pub & Grill, Waldo. Call 920-459-5904.
Sauk Centre, MN – First and third Thursdays of each month through the first week in May, Truckers Inn. Visit the Mid-American Auction Web site.




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Microwave Moisture Meter Paints Wet Hay
A new type of moisture meter for big square balers sprays paint on bales with wet spots so they can be separated from dry ones. Said to be more accurate than other types, the Gazeeka Model 870 uses microwaves to measure the moisture of bales as they leave the baler. Readings are taken 50 times per second, and the average moisture content of each bale appears on a screen in the tractor cab. If a reading is above a predetermined moisture level, the meter sprays paint on both sides of the bale at that location.

Imported from Australia by International Stock Food, Woodstock, GA, the meter will be sold through hay equipment dealers. It was tested by several U.S. farmers last summer, including Gary Smith of Mission Hill, SD.

“I think it’s pretty darn accurate,” says Smith, immediate past president of the National Hay Association. “It’s a really good management tool, especially if you’ve got hired help out there.”

Read more about the meter in the February issue of Hay & Forage Grower.




Custom Operators: Take A Long-Term View
More custom operators should ask their clients to enter into multi-year contracts, said Chilton, WI, attorney George Twohig. “If you intend to buy substantial additional equipment because you’re promised a lot of acreage, you should know that acreage will be there,” Twohig told attendees at last week’s Wisconsin Custom Operators (WCO) meeting in Wisconsin Dells.

“Is it unfair to ask a farmer to make a commitment to you if you’re willing to make a commitment to him? Will he guarantee you at least a minimum amount of acres for an extended period of time so you can keep that equipment running? You have to have enough business lined up to justify the purchase.”

Custom harvesters need to price their services to be competitive and profitable, Twohig added, and don’t want to be in a position where they feel as though they’re “losing a dollar per acre but making it up on volume.”

Those who opt for multi-year contracts will also want to include a clause in the document addressing periodic price adjustments. “Don’t you feel like you’re the only one who’s afraid to raise his price?” asked Twohig, a partner in the firm of Twohig, Rietbrock, Schneider & Halbach. “Everybody else raises their prices when they have to. You have to charge enough to stay in business.”

Custom operators also need to get over the fear that they’ll lose business if they ask clients to sign written contracts, Twohig added. Other businesses routinely require written contracts. “The banker won’t do a contract with you if it’s not in writing.”

At the very least, consider putting important contract terms on the back of the purchase orders used with clients. “That’s what equipment dealers typically do. With a purchase order you can put all the terms on the back of it saying this is the agreement under which you’ll provide services. That purchase order can also act as a contract.”

The WCO meeting was held in conjunction with the annual meetings of the Midwest Forage Association and the Professional Nutrient Applicators Association of Wisconsin. Nearly 400 people attended this year’s event.




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Simply Stated
“Everyone is just trying to run as lean as possible. I used to run with about six months of hay on hand at all times. Now I don’t.” – Sunnyside, WA, dairy producer on what he thinks it will take to stay in business this year. Source: Seattle Post-Intelligencer.

“As biomass production increases, pests will react to the new resources we put out and make available to them. In the U.S., soybeans were considered a pest-free crop for many years. But now soybeans, just like any other crop, have management issues related to both insects and diseases.” – University of Illinois researcher Jarrad Prasifka, explaining that it’s not yet known how insect pests might affect management of biomass crops like miscanthus and switchgrass. See Researchers Evaluate Potential Pests In Biomass Crops.




Ammoniate To Boost Hay Quality? Maybe
There’s an abundance of low-quality grass hay in many parts of the country due to last year’s inconsistent growing-season weather. Treating that kind of hay with anhydrous ammonia might be an option for improving quality and value, says Bob Whitney, Texas AgriLife Extension agent, Williamson County.

Whitney notes that, while ammoniating hay hasn’t been researched or recommended for a long time, studies from Texas A&M University and Oklahoma State University have shown an increase in energy and protein consumption in cows fed treated hay. The OSU study notes that ammoniating high-quality hay – alfalfa, forage sorghum, hybrid sudan, small grain hays or any moderate-to-early harvested grass hay (including both cool- and warm-season species) – can lead to toxicity problems. The Texas A&M study was conducted on Coastal bermudagrass.

But even with low-quality hay, ammoniation should probably be a last resort. “While the procedure can increase both crude protein and digestibility, the easier and safer method of meeting the animal's nutrient requirements would involve the use of some kind of supplement,” says Texas AgriLife Extension forage specialist Larry Redmon.

You’ll also want to do some cost calculations. “Ammonia is hard to find, but it is still available,” says Whitney. “The cost will knock you over until you understand that it is still the cheapest source of nitrogen. Always, always exercise extreme caution when using anhydrous ammonia. It can injure or even kill you.”

To learn more about recommended steps to follow when ammoniating hay, check out this recent blog post from Whitney.




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Harvesting High-Quality Forages for Profitable Dairy Production – February 9, 2010 at the World Ag Expo in Tulare, CA.
High-quality hay and silage are vital to Western dairies, and good harvesting and storage management is especially critical in these difficult economic times. Hay & Forage Grower and Mycogen Seeds are teaming up to present a seminar that will offer the latest information on how to get the most return from these important feeds. On February 9, top experts will present the outlook for hay and milk prices and tell how to do the best possible job of managing your hay and silage crops. Don’t miss this event.



State Reports: Illinois, Minnesota
Illinois
Demand for straw remains high in the Upper Midwest, reports hay and straw dealer Don Brown, Jr., from Davis. Normally, Brown doesn’t get many calls from livestock producers for straw bedding until late November or early December. Last fall, though, the calls started in October. “The corn harvest was late, and people didn’t have stalks available like they normally do. Then we got a pretty good snowstorm around Christmas, and things picked up even more.”

Currently, straw packaged in large square bales is bringing $90-115/ton in private treaty sales. That’s up about $20/ton from prices of a year ago. Reports that winter wheat plantings in many states, including Illinois, are down considerably from year-ago levels could also affect straw marketing over the next several months, he says. “The supply could stay tight, and demand could stay strong for awhile.”

Brown and his wife, Sandee, also grow alfalfa, alfalfa-grass mixed and straight grass hay on 300 acres at D & S Brown Farms. During a typical year, about 30% of their hay sales are to dairies, 30% to beef operations and 30% to horse owners. The remainder is sold to a variety of markets, including alpaca owners and circuses.

Demand for dairy-quality alfalfa hay has also been picking up since the first of the year. The Browns market most of their alfalfa in 3 x 3 x 8’ bales to dairies in northwestern Illinois, Wisconsin and Iowa, but they occasionally range farther afield.

“A few months ago, it wasn’t moving at all,” says Brown, who is finishing up a term as president of the Illinois Forage and Grassland Council. “Dairy farmers didn’t have any money. But it’s really started coming around in the last several weeks. The dairy guys have fed up everything they had, and they’re buying again. The milk price has been getting a little better and that’s helped, too.”

Crowds at the twice-a-month Northwest Illinois Forage Council hay auction have been growing since the first of the year, says Jim Morrison, University of Illinois Extension educator in Rockford. The auction takes place at the Boco MiniMart in Orangeville on the second and fourth Saturdays of each month from November through May. Start time is 11 a.m.

While most of the loads selling at Orangeville haven’t been tested, Morrison says his general impression is that prices are higher than they were a year ago. He expects high-quality hay will continue to command a higher price as the winter progresses. “But that will be impacted by the tight financial conditions for dairy producers,” he says.

Hay trading in northern Illinois has been moderate to active with prices steady to firm, according to the most recent Hay Market Report compiled by USDA and the Illinois Department of Agriculture. Premium alfalfa hay, packaged in big squares, is selling for $170-180/ton.

To contact the Browns, call 815-238-8372 or email don.brownjr@yahoo.com. To contact Morrison, call 815-395-5710 or email morrison@illinois.edu.

Minnesota
Offering customers an incentive to take delivery during the growing season is part of the overall profit strategy at Nelson Hay Company in Hadley, MN. Owner Kevin Nelson markets alfalfa-grass hay, grown on 800 acres and packaged in small and medium square bales, to horse owners in Minnesota and western Wisconsin. In a typical year, most of his production is contracted by the end of April.

He charges customers $5/ton storage fees if they take delivery between Sept. 1 and Dec. 31. For delivery between Jan. 1 and March 31, the charges bump up to $10/ton. “Getting rid of inventory is a way to reduce my risk,” he says. “Just a little leak in the barn roof can ruin 10-15 bales.”

Even with market and input price volatility, Nelson has worked to hold prices “mostly steady” for the past four years. “We did tack on a surcharge when fuel prices spiked. But we haven’t changed our basic price. Our goal is to keep our long-time customers.”

There’s been an increase in activity at local hay auctions in recent weeks, due mostly to heavy snow cover, he says. “In a lot of places, there are 2-3’ of snow on the ground. People haven’t been able to turn out their cattle on cornstalks, and there’s still a lot of hay stacked out in the field that people can’t get to. Grass hay prices have been picking up a bit.”

To contact Nelson, call 507-836-6181 or 507-227-4932.




Events

Idaho Conference Is Feb. 16-17
Educational sessions on marketing and legal issues, pest management and forage management, along with a trade show, will be held at the 2010 Idaho Alfalfa and Forage Conference at the Best Western Burley Inn in Burley on Feb. 16-17.

Specific session topics include: “Optimizing Profits by Adjusting Cutting Schedules, “Recent Advances in Alfalfa Tissue Testing” and “Reducing Inputs to Improve Profits: Good or Bad Idea?”

The full conference registration fee of $145 includes membership in the Idaho Hay and Forage Association. If received after Feb. 5, a $30 late fee will be added. One-day registration rates are also offered. Get conference details and a registration form.




Safe Transport Is Washington Meeting Topic
“Get (Highway) Legal” is the theme of a morning meeting sponsored by the Northeast Washington Hay Growers Association and Washington State University on Feb 6 at the Clayton Grange Hall in Clayton. Washington State Patrol commercial vehicle inspectors will be on hand to discuss commercial drivers' licenses, DOT numbers, securing farm loads, truck and trailer safety retrofitting and more.

For more information, call Wes McCart at 509-258-4041 or Tom Platt at 509-725-4171, or download a brochure.




Calendar of Events
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. 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.

Feb. 16-17 -- Professional Crop Producers Conference, (Forage Program is Feb. 17), Holiday Inn Harrisburg/Hershey, Grantville, PA. Contact Marvin Hall at mhh2@psu.edu or download program.

Feb. 25-28 -- 8th Annual Pennsylvania Horse World Expo, Farm Show Complex, Harrisburg. Visit the Expo Web site.

March 2 -- Illinois Forage Institute, 9:30 a.m.-4 p.m., Kankakee Community College, Kankakee. Visit www.illinoisforage.org.

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

March 16-17 -- Professional Dairy Producers of Wisconsin Annual Business Conference, Alliant Energy Center, Madison. Download a brochure.

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 14-15 -- Kentucky Grazing School, University of Kentucky Research & Education Center, Princeton. Preregistration required. Download a brochure.

May 13 -- Legume Management In The Southeast: Field Day And Pasture Walk, Central Georgia Research & Education Center, Eatonton. Details forthcoming at the University of Georgia Forage Web site.

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

Aug. 9-10 -- Kentucky Grazing School, Woodford County Extension Office, Versailles. Preregistration required. Download a brochure.

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



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