Could Hay prices be tied to dairies?

 What’s the old phrase????Make hay while the sun shines? Well, the hay farmers did their part…the sun did it’s part…but something fell apart.  While hay prices in 2008 were absolutely great, growers are recognizing that 2009 probably won’t bring the same financial yield. Hay prices are down almost $100/ton and without pulling out a crystal ball, the downturn in the dairy market complete with a huge sell off of dairy cattle certainly is one card in this ominous hand. Paul Patterson is a University of Idaho Extension Economist in Idaho Falls and he states the issue very specifically : “A reduced demand from dairies because of a drop in milk prices led to the decline in hay prices.”

 Where does it go from here? “It’s always related to supply and demand. USDA was projecting an increase in terms of hay production in Idaho and nationally. If that holds true, and if there is no off-setting increase in demand, then we will probably continue to see weak hay prices. Again, we’re not going to see prices peak at the levels they did last year.