Waterloo Cedar Falls Courier, IA
01-23-07
Hay for sale as local farmers look to fill shortages in West and South
By MATTHEW WILDE, Courier Staff Writer
REINBECK --- The line of large round hay bales collecting snow instead of money says it all to Mike Foght.
The Reinbeck farmer heard reports of hay shortages in the western and southern parts of the country. Heavy snow in the High Plains, drought in parts of Texas and Alabama and wild fires earlier last year destroyed about 60 percent of the hay stock in Oklahoma. Demand is reportedly forcing farmers in those regions to pay double to quadruple the normal price for high-quality forage.
Foght advertised what he thought was reasonably priced hay on the Internet --- www.hayexchange.com/ia. --- in June, and hoped offers would roll in. He's only had one hit, and 18 large rounds sold so far
"It's dead," Foght said of the local hay market. "I can't say (shortages elsewhere) is making any difference."
More than 60 alfalfa/brome and alfalfa large rounds wait for a buyer, along with a limited supply of small square bales from this year's harvest. He's sure the small squares will go, since they only weigh about 50 pounds and are easy for horse owners with limited equipment to handle. The large rounds that weigh about
1,500 pounds, he's not so sure.
"I'm trying to get $45 to $50 for large rounds and no takers," said Foght, who farms with his son, Ben, and brother, Randy.
Hay farmers and brokers say they are getting a few inquires resulting in an occasional sale to out-of-state buyers, but nothing significant so far. Hay experts attribute the minimal interest to high transportation costs, which could add anywhere from 25 percent to 100 percent to the actual cost of the hay when hauled several states away.
As the winter drags on and short supplies elsewhere dwindle even more, local sellers think things will pick up as word gets out Iowa has hay for sale. Reports in
Oklahoma of small squares costing $10 each and large rounds bringing $90 --- more than double to quadruple the going rate here --- could make Iowa hay attractive despite shipping costs.
"Freight can be a killer," said Bob Humpal, owner of Fort Atkinson Hay, which holds an auction every Wednesday. "(But) we're starting to get some inquiries.

Last week we sold a couple (semi) loads of large squares (about 800 pounds each) to Texas and a load of small squares to Arkansas."
Two weeks ago, hay was selling at Fort Atkinson ranging from a low of $40 per ton for large rounds to $130 per ton for small squares, with various prices in between depending on quality and type of hay.
Local hay buyers haven't exactly been fighting over forage either. Officials say ample supplies due to relatively favorable growing conditions last year along with a mild winter up until recently, allowed cattle to graze in corn stubble longer than usual.
The final U.S. Department of Agriculture Crops and Weather Report for 2006 said the availability of hay and roughage in Iowa was rated 6 percent short and
84 percent adequate, with a 10 percent surplus.
Quality of hay and roughage for livestock feed was rated 4 percent poor, 32 percent fair and 64 percent good.
Hay experts say demand and prices better start picking up soon, or local buyers may have more trouble finding hay in the future at a reasonable price. With corn prices very profitable right now --- cash corn at more than $3.50 per bushel --- and hay prices marginally so, that could encourage farmers to rip up hay ground and plant corn instead.
A discouraged Foght is planning on going from 16 acres of hay to six this spring and planting more corn.
Bob Schmitt of Rockford has 100 acres of ground dedicated to hay. He said the hay market has strengthened the past 30 days, with more interest from in- and out-of-state buyers, but he's afraid it's a little too late.
"I anticipate there won't be as many (hay) acres this year due to high-priced corn.
Many acres already have been ripped up and fertilized," Schmitt said.
Schmitt doesn't plan on accelerating a gradual trend of dwindling hay production in Iowa. According to government statistics, 2.3 million acres of land were devoted to hay in 1980, 2 million acres in 1990, 1.7 million in 2000 and 1.5 million last year.
Dale Thoreson, Iowa State University Extension beef and farm specialist based in Allison, said farmers need to average about $60 per ton to break even.
For the most part, he said hay farming still is profitable, especially small-square production, but demand for corn will squeeze the industry since it's profitable and not as labor intensive.

If farmers keep producing hay, Thoreson thinks demand for hay in Northeast
Iowa and elsewhere will increase as well. He said a Mitchell County farmer sold a few semi loads of high-quality hay this fall for more than $300 per ton. The payday easily covered shipping costs and provided a nice profit.
Thoreson expects better times ahead.
"By late spring I suspect (hay supplies) will get tight in Texas and Oklahoma,"
Thoreson said. "If they don't get rain to get pastures going, they will have to pull out of the upper Midwest."