Making Hay in the Northwest

You know hay costs are up, but do you know why?
by Janie McQueen

Are you one of the lucky people who have this year’s hay purchased and stored neatly in the barn? Perhaps you own hayfields and are able to bale enough hay to feed your critters for the year. If you’re not in either category, you probably have to buy hay wherever it’s available, and that could be at a local feed store instead of a farm.

Hay sales are about the same this year as before; however, less hay is on the market. There just isn’t as much acreage for hay production. But don’t panic just yet, or get rid of horses so there are fewer mouths to feed!

2008 Price Increase
The higher hay costs have nothing to do with our export market driving prices this year. It would be nice to blame exporting, but it just wouldn’t be realistic. Retailers in the Northwest say it is because of supply and demand controlling product prices. That’s something we can all relate to, and understanding this helps us dip into our pocketbooks at the cash register.

Retailers must pass price increases to the consumer to stay in business, but most customers are very understanding. “We’re not out for a profit on hay,” says Becky at Old Mill Country Store in Ellensburg, WA. “In fact, profit is actually down. The price increase is for the added cost of the product because we operate on a fixed margin.” The Old Mill Country Store sends a truck to pick up the farmers' hay, and this year they really noticed a cost difference in fuel.

Hay is usually sold by weight, and local retailers say that they must pass a 2008 price increase to the consumer - nearly $100 per ton. Retailers feel somebody’s making a profit, but it’s not them or the farmers. So, why this price increase?

Hay Farmers
Fuel costs are way up, and so is the base price of fertilizer. The farmer must purchase many gallons of diesel fuel to run his equipment. That doesn’t account for the initial cost of fertilizing and planting hayfields or the extra expenses for maintenance and repairs on equipment. An important thing to realize is that the farmers aren’t making any more of a profit this year than before. Many are barely hanging on since they must pay higher prices out of last year’s profit and have no profit increase for this year.

Less Hay Production
Hay production has gone down this year because there is less acreage for hayfields, and there was also a drought this year. A drought? That doesn’t seem possible with all the green growth and decent mountain snow packs. But the spring melt was very even, consistent, and finished by springtime, plus there was a lack of successive rains in the mountains and the high water usually associated with spring melt. Consequently, some areas are experiencing drought conditions and some are not. Unfortunately, much of our hay-growing acreage is in drought areas and isn’t able to produce a later cutting of hay. That affects prices in the entire region because of supply and demand. And with lower hay production, most retailers in Washington were forced to stock up on the first cutting of hay. That hay is notorious for being drier and stalkier, but it was the only hay available.

Quality Control
Retailers always demand the same quality hay as export buyers. This year, because production was down, they settled mostly for first cutting, but it is still as weed-free and mold-free as they can find. It must be clean, dry and a nice green color for retailers to purchase the hay.

Now that we are all armed with information about our local retailers and good reasons for cost of hay increases, it never hurts to throw in a prayer for hay price reductions next year!