|
|
Hay & Forage Grower
USDA
Hay Prices
Weather
Send Questions & Comments To...
Rick Mooney, Editor, eHay Weekly, at
hfg@hayandforage.com
For information on Hay & Forage Grower, contact:
Neil Tietz, Editor, ntietz@hayandforage.com
or
Fae Holin,
Managing Editor, fholin@hayandforage.com
For specific information from past issues of eHay Weekly and
Hay & Forage Grower, click on hayandforage.com, and use the search
function in the upper right-hand corner of the homepage.
|
|
|
|
By Rick Mooney, eHay Weekly Editor
With many of their customers struggling financially, commercial hay
growers need to think about how they’re arranging financing deals and,
in some cases, whether they want to extend credit at all, says Dawn
Justice, president and CEO of the Idaho Bankers Association.
It has become increasingly common for hay growers to offer customers the
option of paying in full 30 to 60 days after delivery, charging a few
extra dollars per ton, Justice notes. While that extra-charge incentive
might work for some growers, it can spell trouble for others.
“When you offer full terms on a 30-day or 60-day basis, you’re
essentially playing the role of a lender, financing your customer’s
purchase,” she says. “You’re rolling the dice and taking a
substantial risk. To gain some additional profit, you are risking the
entire amount of the sale. Before you do that, you need to carefully
assess your business and financial situation. Ask yourself if you really
can afford to take that risk.”
To reduce risk, consider terms that require buyers to make a substantial
partial payment when the first load is delivered, followed up by regular
payments over a specified period, Justice suggests. The amount you ask
for up front and the length of the payment intervals will depend mostly
on your tolerance for risk.
“All kinds of variations and scenarios are possible,” she says.
Regardless of how payment terms are set up, insist on a written contract
that spells out delivery amounts, payment terms and payment dates. If
the customer shows any reluctance to sign a contract, consider it a
warning signal. “You probably don’t want to be doing business with
someone who isn’t willing to make this kind of commitment in
writing,” she says.
Wilson Gray, University of Idaho Extension livestock economist, also
encourages growers to always use written contracts. Some growers shy
away from doing so, fearing they might offend long-time customers.
“It’s not a lack of trust,” says Gray. “It’s simply
recognizing that circumstances can sometimes put people in a position
where it’s more difficult for them to make payments in a timely
fashion. If you don’t have a contract, you’re left without any
recourse if things start to go south for that customer. You have to take
steps to protect yourself.”
If a customer is offended by a request for a written contract, point out
that you have to borrow operating capital just as he or she does and
that your bank requires you to sign a contract. “It can depersonalize
the request,” he says.
Be especially cautious extending credit to new customers and/or
customers in other states. Justice advises asking for references, making
inquiries of other suppliers and/or doing a courthouse check for
outstanding liens or judgments.
“If you’re going to extend credit to any extent, you need to make it
your business to learn as much as you can about them and their business.
You need to do your due diligence on every single deal.”
Making it easy for customers to obtain credit may not always be in their
best interest, Justice adds. “If buyers are on thin ice financially,
extending credit is going to potentially give them the opportunity to
get into even more trouble. If they don’t have access to the credit,
it’s going to require them to be better business people. If you get
easy credit, sometimes you make bad business decisions.”
Justice and Gray participated in a panel on this topic at the annual
convention of the Idaho Hay and
Forage Association in Burley last month. See a sample hay
sale contract.
What steps do you take to avoid being burned when extending credit to
customers? Click
here to comment below this article on our Web site or email us at
hfg@hayandforage.com.
|
 Looking for top quality alfalfa seed? Syngenta
has a complete line-up of varieties for your needs. From Genoa, the
three-time Forage Superbowl winner to new 6552, with excellent winter
survival and persistence. To learn more, see your Garst seed advisor,
Golden Harvest dealer or NK retailer.
The Syngenta logo is a trademark of a Syngenta Group
Company.
|
As USDA’s public comment period on the Roundup Ready alfalfa
draft environmental impact statement (EIS) was drawing to a close last
Wednesday, March 3, groups on both sides of the issue continued courting
public opinion with a flurry of press releases and Web site posts. Among
the developments:
Officials for Forage Genetics International and Monsanto Company
expect it will take USDA several months to finalize a decision on
Roundup Ready alfalfa. In a message posted on roundupreadyalfalfa.com,
Forage Genetics president Mark McCaslin and Monsanto alfalfa lead Steve
Welker noted that many positive comments were submitted encouraging USDA
to deregulate. “We appreciate the strong support received from the
American farming community. Your participation will help protect
farmers’ freedom to choose biotech crops,” McCaslin and Welker
wrote. They added that the companies will continue to post updates on
the Web site during the remainder of the process.
A March 3 press
release from the National Organic Coalition (NOC) carried the
headline, “More Than 200,000 NGOs, Farmers, Consumers and Organic
Producers Call For USDA To Prohibit Genetically Engineered Alfalfa.” A
check of comments on USDA’s
federal rulemaking portal at the end of the week showed 7,400+ total
comments were posted during the public comment period. When contacted by
eHay Weekly about the apparent discrepancy, a spokesperson for
NOC responded via email that its numbers came from five organizations
that had portals for individuals to write their comments and send them
in from the organization Web site to the official USDA site. “We did
this because, in the past, the USDA’s count has been woefully under
what we knew was there,” wrote NOC director Liana Hoodes. “On the
(USDA) Web site, they do note that it may take awhile for all the
comments to be counted. So if the comments from these five
organizations, totaling over 200,000, were sent in on the last day, (the
site) may not even be showing them yet.”
In another March 3 press release, the Canadian
Biotechnology Action Network called on Canadian farmers and
consumers to support a bill in the Canadian parliament that would
require “an analysis of potential harm to export markets be conducted
before the sale of any new genetically engineered (GE) seed is
permitted.” The press release noted that “GE alfalfa has not been
approved for growing in Canada, but it has been cleared for import into
the country.” The measure, C-474, is slated to be discussed in
parliament later this month.
|
Timing is critical when attempting to control winter weeds in
alfalfa, says University of Nebraska Extension forage specialist Bruce
Anderson.
Weeds like pennycress, downy brome, mustards, cheatgrass and
shepherd’s purse are common in first-cut alfalfa, he points out. They
lower yields, reduce quality, lessen palatability and slow hay drydown.
“Once alfalfa starts growing, you can’t control these weeds very
well,” says Anderson. “However, if you treat your alfalfa as soon as
possible during this winter’s next spring-like weather, you can have
cleaner, healthier alfalfa at first cutting.”
Several herbicides can help control winter-annual grasses and broadleaf
weeds in alfalfa. They include Sencor, Velpar, Sinbar, Pursuit, Raptor,
Karmex, Roundup and Gramoxone. “They all control mustard and
pennycress, but Karmex and Pursuit do not control downy brome very
well.”
To avoid much injury to your alfalfa, apply most of these herbicides
before alfalfa shoots green up this spring, he advises. “If you wait
and alfalfa shoots are green when you spray, your alfalfa growth might
be set back a couple weeks. If it does get late, use either Pursuit or
Raptor because they tend to cause less injury to alfalfa.”
|
Whether you’re looking for proven
performance in a package that offers exceptional value or a tractor that
gives you the latest electronic conveniences and push button simplicity,
the new T6000 Series tractors from New Holland are built for you. T6000
tractors are a natural choice for haying operations and heavy loader
work. To learn more, see your local New Holland dealer or call
1-888-290-7377. www.newholland.com/na
|
Three 4-H horse clubs in Augusta County, VA, are organizing a hay
drive to help local horse owners get their horses through the winter.
According to county 4-H Extension agent Jennifer Mercer, the hay drive
is a response to the economic downturn as well as cold, snowy weather
that has left many horse owners unable to provide adequate nutrition for
their horses.
The clubs are seeking donations of small square bales of hay of any
type. Donated hay needs to be delivered to the Augusta County Government
Center by March 19. That’s also the deadline for local horse owners to
apply
for hay online.
For more information, contact Mercer at 540-245-5750.
|
1 Truck driver killed near Eugene, OR,
last week, when the cab on his vehicle was demolished by several
1,000-lb hay bales falling from a tractor-trailer rig in the oncoming
traffic lane. The accident remains under investigation. Source:
Associated Press.
30 Percentage of Americans who “do not use
the Internet anywhere,” according to recently released results of a
U.S.
Department of Commerce National Telecommunications and Information
Administration survey. The survey also shows that roughly 40% of the
U.S. population does not have broadband/high-speed Internet access.
$111 Average per-ton price of baled alfalfa
hay last month, according to USDA’s Agricultural
Prices report. That’s down $2/ton from January’s figure and
$30/ton less than that of a year ago.
372,000 Expected metric tons of hay Spain
will export to the United Arab Emirates (UAE) in the 2009-10 marketing
year, according to a recent report at agrimoney.com.
That’s a year-to-year jump of 20%. Four years ago, Spain shipped just
27,568 metric tons to the UAE.
|
Arkansas
Several factors severely crunched beef-quality hay supplies in many
parts of the state, reports Robert Seay, county Extension agent/staff
chair in Benton County.
A series of January and February snowstorms forced many cattle producers
to feed more hay than they normally would this time of year. “It
really set off a scramble to find hay,” says Seay. “It’s been
pretty hectic for the last two weeks or so.”
Supplies were already tight heading into the winter due to a rainy
growing season that crimped hay production. “A lot of growers also cut
back on fertilizer last year because of the high cost, and that reduced
volume as well. It’s been kind of a perfect storm of things keeping
hay supplies tight.”
Ozzie and Dutch Rodgers, of Rodgers Brothers Farms near Decatur, were
sold out of hay by the end of January. They put up nearly 3,000 large
round and square bales of bermudagrass hay last year.
“Generally, we’ll have some hay on hand to sell throughout the
year,” says Dutch Rodgers. “This year, though, we started getting
calls in mid-December. It all went in about 45 days.”
Most of the sales were to local buyers. “We’ve had a lot harder
winter than people expected. Usually, we’ll be able to do some grazing
through the winter. But, by mid-December, pastures were froze out,”
Rodgers says.
Area livestock producers typically keep hay in front of cattle until
April 1 because of potential grass tetany problems. This year could be
different, Seay says.
“Things are just starting to green up now. Some producers who are out
of hay may decide to open up the gates and let the cattle start grazing
full time. We’ll just have to wait and see if that leads to any animal
health issues.”
To contact Seay, call 479-271-1060 or email rseay@uaex.edu. Rodgers Brothers Farms
can be contacted at 479-790-7990 or amer2575@tds.net.
Maryland
An oversupply of average-quality hay continues to hold a lid on prices,
says University of Maryland Extension forage specialist emeritus Les
Vough.
Good weather last fall was a big factor in the hay-supply buildup. “We
had favorable weather all the way through November,” says Vough. “It
was great for fall pasture growth, especially tall fescue. Then we
didn’t get any significant snow on the ground until mid-December.
People were able to keep animals on pasture. As a result, there wasn’t
the need for hay like we normally see.”
Large carryover stocks from 2008 also played a role. “A lot of
average- to lower-quality hay didn’t find a market last year. So now
we have that hay plus the stuff that was put up in 2009.”
Vough reports that locally grown hay for the horse industry has been
bringing $75-150/ton at local auctions. At this time last year, the
price was $150-250/ton. “It’s hard to get an accurate read because
the quality has been pretty variable. High-quality hay appears to be in
short supply. You’ll still see some market reports of occasional loads
selling in the $200-300/ton range.”
To contact Vough, call 301-405-1322 or email vough@umd.edu.
|
The hay market, alfalfa weed-control strategies, roughstalk
bluegrass and producing forage on farms will be discussed the morning of
March 11 at Michigan State University (MSU) Extension’s Forage
Technology Conference. To be held at the Kellogg Center in East
Lansing, the conference is part of Agriculture and Natural Resources
Week at MSU.
After lunch, participants can attend sessions on forage production and
management or grazing management. The $35 registration fee includes
lunch and all materials. To register, call 517-355-0271, ext. 1114, or
email schonfel@msu.edu.
|
Proper horse nutrition and pasture management will be the focal
points of a New Mexico State University workshop on March 18. It will
run from 6 to 9 p.m. in the Farm Bureau Building at the New Mexico State
Fairgrounds in Roswell.
Topics to be addressed include properly feeding forage to horses, hay
sampling, small-acreage pasture management and developing least-cost
feeding programs. The workshop is free and snacks will be provided.
Preregistration is not required. For more information, call
575-622-3210.
|
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 10-12 -- International Equine Well-Being Symposium, Kansas
State University Student Union, Manhattan, KS. See an
agenda/register.
March 16-17 -- Professional Dairy Producers Of Wisconsin Annual
Business Conference, Alliant Energy Center, Madison. Download
a brochure.
March 25 -- Georgia-South Carolina Piedmont Forage And Grassland
Council’s Annual Meeting, Just More Barbecue, Pendleton, SC. Get info.
March 25 -- University of Minnesota Extension Dairy Meeting,
Community Center, McIntosh. Call 218-563-2465 or 800-450-2465.
March 26 -- University of Minnesota Extension Dairy Meeting,
Ottertail Operations Center, Ottertail. Call 218-385-5420.
March 26 -- 2010 Forage Production Seminar, Bremer Bank, Amery,
WI. Call 715-485-8600 or visit polk.uwex.edu.
March 27 -- Texoma Pasture Conference, Ardmore Convention Center,
Ardmore, OK. Program will focus on brush and weed control in pastures.
Preregister at www.noble.org/agevents or
contact Tracy Cumbie at tlcumbie@noble.org or 580-224-6411.
March 27 -- Winter Regional Horse Owner Program, Cloquet Forestry
Center, Cloquet, MN. Registration deadline is March 24. Register online.
March 30-April 1 -- Pasture And Livestock Management Workshop,
Texas AgriLife Research & Extension Center, Overton. Call
903-834-6191 or get
info.
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. See
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. See
a brochure.
Sept. 1-4 -- National Hay Association Annual Meeting, Griffin
Gate Marriott Resort, Lexington, KY. Watch for details on the NHA Web site.
|
|
|
To unsubscribe from this newsletter go to: Unsubscribe
To subscribe to this newsletter, go to: Subscribe
You are subscribed to this newsletter as #email#
To get this newsletter in a different format (Text or HTML),
or to change your e-mail address, please visit your profile
page to change your delivery preferences.
For questions concerning delivery of this newsletter, please contact our
Customer Service Department at:
Hay and Forage Grower
A Penton Media publication
US Toll Free: 866-505-7173
International: 847-763-9504
Email:hayandforage@pbinews.com
Penton Media | 249 W. 17th Street | New York, NY 10011
Copyright 2010, Penton Media. All rights reserved. This article is
protected by United States copyright and other intellectual property
laws and may not be reproduced, rewritten, distributed, re-disseminated,
transmitted, displayed, published or broadcast, directly or indirectly,
in any medium without the prior written permission of Penton Media.
|
|
