Northwest FCS Hay Market Snapshot

Hay Market Snapshot

I’m KayDee Gilkey with Open Range. Since I’m attending the Washington State Hay Growers Association’s Annual Expo and Trade Show today, we will be highlighting Northwest Farm Credit Services quarterly snapshot for hay.

Northwest FCS Vice President of Market Research and Development Michael Stolp shares more from their fourth quarter 2012 results of the hay Market Snapshot.

Stolp: “Hay producers in the Northwest benefitted from strong hay prices in 2012. Hay prices met resistance from dairy buyers throughout the year, but tight supplies of hay and high-cost alternatives limited the dairy industry’s market influence. Export market growth helped to offset lower demand from dairies. Despite higher input costs, hay growers generally had a profitable season. Going forward exports should continue to support hay prices, but the market outlook will be strongly influenced by overall supplies, the price of alternative feeds and dairy industry profitability in 2013.”

The snapshot provides some regional commentary:

In the Columbia Basin, a persistent shortage of high quality alfalfa and overall lower yields - due to early season rains the past two years - is supporting prices. Currently, the hay market is quiet. There is speculation that Columbia Basin hay stocks are 95 percent or more sold.
 
In Idaho, good weather allowed irrigated hay producers to maximize the yield and quality of their last cutting of alfalfa. The market had been quiet, but showed some strengthening at the end of the year based on increased interest from dairies.

Klamath Basin growers had a positive year with good weather, adequate water, and strong demand.