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USDA Forecasts Bumper Hay Crops 

USDA expects production of alfalfa and alfalfa mixtures in the U.S. to reach 72.5 million tons this year, a 2% increase from last year’s total.

Based on Aug. 1 conditions, yields are projected to average 3.49 tons/acre, up 0.14 ton from the 2010 figure and the second-highest yield on record. In 1999, yields averaged 3.51 tons/acre.

The harvested area is forecast at 20.7 million acres. That’s unchanged from USDA’s June forecast, but down 2% from 2009 acreage.

Higher-than-normal precipitation in many alfalfa hay growing regions goes a long way in explaining the expectations of higher yields. The largest yield increase, to a record 4.2 tons/acre, is forecast in Indiana. Arizona and Nebraska are also forecasting record-high alfalfa yields. Other states with notable increases include Minnesota, New York and North Dakota. States forecasting lower yields than in 2009 include Colorado, Idaho, Oregon, Texas, Virginia, Washington and Wyoming.

For other hay, USDA is forecasting production of 81.4 million tons, up 7% from last year’s number. If realized, it will be the second-highest production on record.

Yields are expected to average 2.09 tons/acre, up 0.11 ton. That would be a record-high yield, surpassing the 2.06 tons/acre of 2004. Harvested area is forecast at 38.9 million acres, unchanged from the June forecast but up 1% from the 2009 figure.

Producers in California, Nebraska, Louisiana, Montana, North Dakota and South Dakota are expecting record-high yields. The largest expected increase is in Texas, up 0.9 ton/acre. Texas producers are trying to replenish hay stocks after low production levels the last two years. The largest forecast yield reduction compared to last year is in Virginia. USDA expects other hay yields in that state to be down 0.40 ton due to hot and dry weather.

This article appeared in eHay Weekly's August 17, 2010 eNewsletter.

Preserving Hay Quality

Some hay producers across the province are struggling to get their hay put up dry. Here are several options.

Preservatives:
As a rule, preservatives will not increase forage quality. Once quality deteriorates, adding a preservative will not enhance the quality.  Non-protein nitrogen, such as anhydrous ammonia, can slightly increase the crude protein levels in the hay.  Some of the ammonia will bind with plant material and increase the overall protein content of the feed.

Preservatives allow forages to be baled at higher moisture content, and reduce the time required for the forage to be baled.  There should be less leaf shatter and potentially better quality forage when baling at higher moisture content.  However, it is still imperative that proper hay making procedures be followed when harvesting and baling.   

To read more of this article, Click Here.

For more information on preserving hay quality, contact Andre Bonneau or Christy Winquist at the Agriculture Knowledge Centre by calling toll-free at 1-866-457-2377, or by e-mail: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

AgriRecovery Aids Livestock Producers Facing Drought

May 31, 2010 

Livestock producers in Alberta and Saskatchewan facing two years of drought will receive funding from federal and provincial governments to buy feed while damaged pastures recover. Federal Agriculture Minister Gerry Ritz joined Jack Hayden, Alberta Minister for Agriculture and Rural Development, and Saskatchewan Agriculture Minister Bob Bjornerud to make the announcement today in Lloydminster.

"Ranchers in Western Canada know how to deal with all kinds of weather, but when they get hit hard with back-to-back droughts AgriRecovery is there to make sure they have the support they need," said Ritz. "This investment will help producers buy the feed they need to keep their animals off the pastures while the grass recovers from the drought damage."

Under the 2010 Pasture Recovery Initiative, livestock producers living in the eligible counties and municipal districts in Central and Northern Alberta and West Central and Northwest Saskatchewan will receive pasture assistance for breeding cattle, as well as assistance for other types of breeding livestock, totalling up to $114 million subject to size of the eligible livestock. It is estimated that there are more than 2.2 million breeding animals in the affected areas.

In 2008 and 2009, portions of Alberta and Saskatchewan experienced challenging weather conditions that have resulted in delayed pasture development for 2010 in the hardest hit areas.

"The drought conditions experienced during the last several years have been a challenge for many producers in the province and it is important that we address this type of extreme situation through risk management initiatives," said Hayden. "This AgriRecovery payment to livestock producers in the extremely dry areas will allow them time to evaluate pastures and make alternate plans or decisions related to their operations."

"I witnessed first-hand the dry conditions in several parts of west central and northwest Saskatchewan during my drought tour in 2009," Bjornerud said. "The drought had a major effect on livestock producers in the designated area and this initiative will help them address the resulting additional feed costs."

The program will be administered in Alberta by Agriculture Financial Services Corporation, and by the Saskatchewan Ministry of Agriculture in Saskatchewan.

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For more information, contact:

Donna Rehirchuk
Saskatchewan Agriculture
Regina
Phone: 306-787-5389
Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

To view more information about the program click here. 

This article appeared in the May 31, 2010 issue of the Government of Saskatchewan's News Releases.

Investment in Age-Verification will Support Alberta’s Beef Industry

Cattle Producers to Benefit from Incentive Program

Edmonton... Alberta’s cow-calf producers will benefit from a new $15 million Age-Verification Incentive Program. This three-year program will provide cow-calf producers with an incentive for providing information to support marketing and food safety efforts. The incentive will be available in the form of a discount towards subsequent purchases of radio frequency identification tags.

“Our government is committed to working with industry to build a stronger beef sector and age-verification is a crucial piece of that,” said Jack Hayden, Minister of Alberta Agriculture and Rural Development. “Age-verification supports foreign market import requirements and a growing domestic consumer and industry expectation.”

The program applies incentive-discounts to radio frequency identification tag purchases made between January 1, 2009 and December 31, 2012. Incentive-discounts, of up to three dollars for each age-verified animal, represent critical information that producers contribute to support marketing and food safety efforts. Eligibility will be based on the number of animals a producer has, or intends to have, age-verified from the previous year’s calf crop.

Encouraging cattle producers to provide vital information will help to assure greater industry participation in adopting tagging and age-verification best practices. Alberta’s livestock traceability system is dependent on tagging an animal and entering this information into the Canadian Livestock Tracking System. This process is critical to identify when an animal enters the food production system.

“Alberta Beef Producers believes that the cattle producers of Alberta will appreciate the program being announced by Minister Hayden today,” said Chuck MacLean, Board Chair, Alberta Beef Producers. “The payment acknowledges that age verification information has value. In these tough economic times, producers welcome the support of government.”

In accordance with the Animal Health Act, age-verification improves Alberta’s ability to prevent, prepare, respond to and recover from an emergency situation such as a foreign animal disease outbreak or a natural disaster that may affect public or animal health. Age-verification also assists industry in accessing existing and new markets.

The Age-Verification Incentive Program is an investment in industry’s long-term success and the economic health of Alberta’s rural communities and is part of The Way Forward and the Government of Alberta’s clear plan for a strong economic recovery.

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To see the full article including the Backgrounder: Details on the Age-Verification Incentive Program click here.

Forages and Grasslands get National Voice; Deliver Economic, Environmental Value

Forages are considered the largest single crop grown in Canada and are viewed by some as the backbone of the cattle industry. It stands to reason, then, that Canada’s forage and grassland sector have national representation. The newly formed Canadian Forage & Grassland Association does just that, with an eye to promoting the growth of the forage and grassland sector on the domestic and international fronts.

Headquartered in Brandon, Manitoba, the national association aims to position the sector as a sustainable and environmentally friendly industry with a focus on research and market development, innovation and technology transfer. The association’s board of directors will be comprised of representatives from across the forage industry, including the livestock sector, to ensure a comprehensive approach.

“We see the livestock sector certainly as the most important piece of the forage and grassland industry in Canada,” Wayne Digby, the association’s executive director, told Action News. “We estimate probably 85 per cent of the feed that goes into an animal is forages, in one form or another.”

Research tops the association’s concerns, from the development of new forages right through to the research on grazing lands. “Canada has a vast area of rangelands and we feel that, if anything, there’s a drawing back of research into those areas, and technology transfer as well, so we feel that there’s an important role to play,” he said.

A recently-released report by the Sakskatchewan Forage Council on the economic and environmental value of Saskatchewan’s forage industry pegged the direct economic value generated by forages at $740 million annually in that province.

Indirect benefits, which included erosion control, flood control, water quality, wildlife habitat, pollination services and carbon sequestration, were valued at $895 million to $1.9 billion annually. All told, the direct and indirect value from Saskatchewan forages was estimated at $2 billion to $3 billion annually in that province, the report said.

Having a similar report on a national scale would be ideal, Digby said.

The new association is very supportive of the CCA’s efforts to secure funding for a renewed grazing mentorship program, noted Lynn Grant, Chair of the CCA Environment Committee. “We look forward to working with CFGA to encourage research and technology transfer in grasses and forages. That work benefits cattle producers’ bottom line and conserves the environment.”

The CCA encourages environmentally-sustainable production practices and recognizes the critical role forages and grasslands play.

Sask. Wildlife Habitat Changes Spark Controversy

By Karen Briere, Regina bureau
May 6, 2010

Saskatchewan’s environment minister says legislation that could see crown land taken out of wildlife habitat protection and sold to the producers who lease it should pass this session despite recent controversy.

Nancy Heppner last week apologized to conservationists who said they hadn’t been fully consulted about changes to the Wildlife Habitat Protection Act.

But after an April 29 meeting with conservation group representatives and several ranchers, she said she expects the legislation will go ahead. The session is scheduled to end May 20.

“If there’s areas where we can improve, I’m open to those,” she told reporters after the first meeting. Another meeting was scheduled for May 6.

The environment ministry is using a new ecological assessment tool to assess the 3.5 million acres protected under the WHPA. Heppner said up to 10 percent of the land with the lowest ecological assessment could be removed from protection and sold.

Other land, considered of moderate ecological value, could also be sold but with a new crown conservation easement attached.

Conservation easements have been available for years in Saskatchewan but amendments to the Conservation Easement Act passed last week would allow for the sale of crown land with a crown easement attached to protect the land regardless of who owns it in future.

Land with high ecological value would remain under the WHPA.

Read More...

State-Of-The-Art Hay Marketing

Andrew Clarkson, Oakley, IL, is finding some innovative ways to sell hay and straw – by contracting and by using Craig’s List and Facebook. Last year, Clarkson and his wife, Jessica, produced nearly 5,000 small square bales of alfalfa-grass hay, sold mostly to horse owners and the local Amish community. They also baled some rye straw.

Although they sell 60-70% of their crop via their Web site, www.clarksonfarms.com, this past year they also contracted hay with a local customer.

“I said, ‘We know that you’re going to use roughly 300 bales all winter. Why don’t I lock you in at that and put it in our shed if you’ll give me your word that you’ll buy it until it’s gone?’ ”

Another grower wants to do the same thing this year, Clarkson adds. “He said, ‘I want 300 bales of your second and third cuttings, and I want to speak for it now before anyone gets to it.’ ”

It’s tough to lock in a price, Clarkson says. “But it’s money in the bank. He’s going to spend that money with me, and I’m willing to trade possibly a little bit higher price for the guarantee that he’s going to get it. The one rule I’ve made, though, is if I can’t trust the person, I don’t do business with him.”

Clarkson, who commutes to a fulltime job from the eastern side of Decatur to Harristown on the city's west side, also posted straw for sale on Craig’s List. “I got on Craig’s List in September and put on, ‘Hey, if you need straw, I’m driving through Decatur every day. For a $20 minimum charge, I’ll deliver anywhere in the metro area of Decatur for $4/bale.’ And I got cleaned out by November doing that.” He also was able to write off mileage to work as a farm expense, he says.

So far, Clarkson has had one hay sale using Facebook, a type of social media that he started using in January. For more on Clarkson’s experience with Facebook, see our social media stories in the May issue of Hay & Forage Grower. Or visit hayandforage.com and search for social media.

To contact Clarkson, email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or call 217-972-9640.

RR Alfalfa Case Reaches High Court

The U.S. Supreme Court heard oral arguments April 27, on Monsanto’s challenge to a three-year ban on genetically engineered alfalfa. At issue is a 2007 lower-court ruling that stopped the sale and planting of Roundup Ready alfalfa seeds until USDA’s Animal and Plant Health Inspection Service (APHIS) completed an environmental impact statement (EIS) on the potential environmental effects of deregulating the product. Monsanto appealed that decision in 2008 and 2009, but lost both appeals. The Supreme Court agreed to take the case this past January. This will be the first genetically engineered crop case ever heard by the court. See a “Timeline Of Key Roundup Ready Alfalfa Events” developed by Monsanto.

In a final reply brief filed with the court in mid-April, Monsanto attorneys said the case is about fairness and choice for farmers. Among the company’s major contentions:

1. The safety and efficacy of Roundup Ready alfalfa was never an issue in the original lawsuit against USDA; however, the injunction took away farmers’ rights to choose to plant the technology – without scientific reasoning.
   
2. Farmers should be able to count on biotech crop approvals issued by the experts in federal agencies – or at least be confident that challenges to these decisions require consideration of scientific evidence.
   
3. Having a sound process for resolving disputed facts, like those in this case, serves the interests of farmers and the public. Courts should not substitute facts reviewed by expert agencies, in this case APHIS-USDA, with their judgment.

A total of 18 agricultural, business and legal groups have filed five friends-of-the-court briefs in support of Monsanto. Included are the American Farm Bureau Federation, National Alfalfa & Forage Alliance, the U.S. American Petroleum Institute, National Association of Home Builders, Allied Education Foundation and the Pacific Legal Foundation. See the briefs and get other information on the case.

In a posting on its Web site last week, the Center For Food Safety (CFS) noted that the state attorneys general in California, Massachusetts and Oregon have filed a brief supporting the center’s opposition to Monsanto in the case. The brief emphasizes the “states’ interests in protecting their natural resources and their citizens’ rights to be informed about the environmental impacts of federal actions.” CFS brought the original lawsuit that led to the 2007 Roundup Ready alfalfa ban.

Other groups filing briefs supporting the CFS position, according to the posting, include the Union of Concerned Scientists, the National Resources Defense Council, Defenders of Wildlife, the Humane Society of the U.S., the Center for Biological Diversity, organic businesses, farmers and more than a dozen law professors, scholars and several former general counsels of the Council on Environmental Quality.

The court is expected to hand down a final decision in the case by June.

“We are very pleased to announce the formation of a new national association for our forage and grassland industry,” says Ed Shaw, Chair of the newly formed Canadian Forage & Grassland Association/Association Canadienne pour les Plantes Fourragères (CFGA/ACPF).  “A national organization will help us promote the growth of the forage and grassland sector at home and abroad and provide a national voice for our industry.”

The incorporation process has been in the works for the past year according to Ed. “We formed a committee with representatives from the provincial forage associations as well as people like myself who work in the industry.” Ed is owner of International Quality Forage; an export hay business that services clients in the Middle East, UK, Ireland and U.S. The CFGA Board of Directors will consist of representatives from across the entire forage industry including Eastern and Western Canada Provincial Forage Associations/Councils, the forage export sector, and the livestock sector. CFGA will be working closely with representatives of the livestock sector such as beef, dairy, sheep and equine as the CFGA develops. The Association will be housed in Brandon, Manitoba and Wayne Digby, Executive Director of the Manitoba Forage Council will serve as Executive Director of the Canadian Forage & Grassland Association.
 
The group has an extensive list of objectives with a strong focus on advancing the forage and grassland industry and promoting it within Canada and abroad. According to Ray Robertson, CFGA Vice-Chair and Manager of the Ontario Forage Council, “forages are recognized as the largest single crop grown in Canada, yet the largest percentage of it is fed on the farms where it is produced. This organization will have a major emphasis on helping our domestic producers and the users of forage.”  Ray goes on to emphasize that the CFGA will work very closely with research and extension agencies in ensuring that there is support for forage and grassland research and technology transfer.

Germain Lefebvre, President, Québec Forage Council, has also been very involved in the development of the CFGA and indicates that  “at the Québec Forage Council, we firmly believe that forage and grassland are the backbone of a broadbased cattle industry as well as a natural resource for landscape and regional development, essential for a diversified and sustainable agriculture.  This national organization is needed to promote and represent the industry, coast to coast. CFGA will help provincial forage councils achieve their goals.”

For the complete CFGA Press Release click here.

April 9, 2010

A shortage of available, ocean-going cargo containers, coupled with rising freight rates, is putting a big-time chokehold on hay exports out of the Pacific Northwest. 

“We have customers,” says Rollie Bernth, president of Ward Rugh, Inc., a hay export firm in Ellensburg, WA. “We just can’t get the hay shipped. It’s creating all kinds of headaches. This is as bad as it has been in years.” 

The recession in the U.S. economy is the key factor. With fewer imports coming into West Coast ports, there aren’t as many cargo containers available to backhaul U.S. hay to customers in the Pacific Rim. At the same time, to make up for the decrease in shipping volume, companies have been increasing freight rates at a steady clip. “Rates are double what they were last year and just about triple what they were two years ago,” says Bernth. 

"The whole (hay export) business is built on the fact that we can ship our products competitively,” adds Mark Anderson, president of Anderson Hay & Grain Co., Inc., another exporting firm based in Ellensburg. “This is a major concern.” 

He fears that if the situation doesn’t improve soon, there could be long-term negative consequences for hay export firms in the Pacific Northwest and the entire U.S. hay-growing industry. “We’ve developed a reputation with our customers for being able to produce and deliver high-quality hay. But if this continues, some of those customers may start thinking that the forage supply coming from the West Coast of the U.S. isn’t dependable. That’s something we absolutely don’t want to happen.” 

On the upside, Anderson believes freight rates may be approaching the point where shipping firms find it feasible to move containers, either by water or rail, from other areas of the country to the Pacific Northwest. Even so, he says, it will still take a major pickup in the overall U.S. economy to get westbound hay shipments moving again. “The only way we’re going to see export volume pick up is if we have a good balance of imports.” 

This article appeared in eHay Weekly's March 30, 2010 eNewsletter.

Rethink Extending Credit to Customers

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.

This article appeared in eHay Weekly's March 9, 2010 eNewsletter.

Provincial Hay Report - Alberta

Dwindling hay stocks have pushed up the demand and prices for hay in many parts of the province, reports Don Allan of AllanHay.com Quality Hay in Sylvan Lake.

“While the main calving season is still a month or two away, ranchers are finding it difficult to source adequate supplies to meet their needs,” Allan says. “A lot of straw and pellets have been fed this winter in lieu of hay. Many are scrambling now to find hay with higher protein to feed to lactating cows with calves at foot.”

Allan, who markets alfalfa-grass and straight grass hay, says his sales have been brisk since last summer. “Our own stocks are nearing their end.”

On price, Allan reports that hay delivered within 100 km (62 miles) of source is currently fetching around $185/ton. Last year, the delivered price was closer to $120/ton.

The supply shortfall is the result of a devastating drought last spring and summer. The year ahead could hold more of the same. “Soil moisture reserves continue to be low,” he says, adding that hay prices will likely be strong again unless there is adequate rainfall over most of the province in April, May and June.

For more information, contact Allan at 403-887-1728 or This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or visit his Web site.

This article appeared in eHay Weekly's March 2, 2010 eNewsletter.

Dew Simulator Increases Baler Capacity

A dew simulator that applies steam to dry hay makes higher-quality, denser bales and dramatically increases the capacity of big square balers, says its inventor. With a DewPoint 6110, a Western grower doesn’t have to wait for natural dew to start baling, says Dave Staheli, Cedar City, UT. He claims a grower baling 40-50 acres per day with one baler can easily cover 200-250 acres per day with a baler and dew simulator.

Pulled between the tractor and baler, the machine has a diesel-fueled boiler and 1,000-gallon water tank. It injects steam into the top and bottom of a windrow at the baler’s pickup mechanism and again as the hay passes through the feed chamber just before it’s compressed. Staheli says the steam is absorbed instantly, retaining leaves and softening the hay.

He built his first dew simulator in 1995, then over the next three years built and sold several more. In 1998, he signed a license agreement with an equipment manufacturer, but the simulator was never marketed, and the license expired in 2007. Since then, he’s upgraded most of the components.
“One of the main things we’ve done is develop a computer-based control system,” says Staheli. “Many of the processes the operator had to think about before have been automated, so now all he has to do is maintain an optimum moisture level in the hay he’s baling.”

This article appeared in eHay Weekly's March 2, 2010 eNewsletter.