7-28 IAN Alfalfa Outlook

 Alfalfa seed acres down 23%. Uh oh?  That little bit of news from the USDA’s National Agricultural Statistics Service could portend problems  for hay producers couldn’t it? Not necessarily so.  This is David Sparks and I will come back with an explanation in a minute.

 Producers in Idaho harvested 8500 acres of alfalfa seed in 2010 which is down 23% from the 2009 crop according to the NASS. What does that mean? Does it spell trouble? Here is NASS spokesperson Tom Kurtz:  “Alfalfa seed is a crop that once, it’s not like potatoes for example, because alfalfa seed is something that they can store, the alfalfa seed press release talked about production for 2010 rather than our current year. What it is is it goes up and down with supply and demand kind of thing so when they produce alfalfa seed is my understanding that if they harvested it in 2010 it can be stored for some time before it is sold so that is not as price sensitive as some of the other commodities would be because it’s not as perishable a commodity. So if we hear that alfalfa seed acres are down 23% we don’t have to run for the exits, we don’t have to panic right? Just because that is something they can store for quite some time. A lot of the alfalfa seed that is grown here in Idaho is not necessarily used here in Idaho. It is sold across the country.”