Northwest FCS Hay Market Snapshot

Northwest Farm Credit Services Vice President of Market Research and Development Michael Stolp shares details from the third quarter results of the Hay Market Snapshot.

Stolp: "Northwest hay prices are strong but market movement has been limited in 2013. Crop damage was wide spread across the region which is perpetuating a long standing shortage of quality hay. LImited supplies will continue to pressure prices of high quality alfalfa upward but weaker demand from Northwest hay exporters and marginal dairy industry profitability continue to keep markets in check. Most Northwest hay growers will be profitable in 2013. Producers that were significantly impacted by rain or drought are likely to lose money unless they were protected by crop insurance."

In the Washington-Oregon Columbia Basin region, a significant September wind storm blew hay in the windrow across fields and into ditches. Rains followed, damaging between 40 and 50 percent of fourth cutting alfalfa. Rain damage was pervasive this season, and impacted all four cuttings for many growers. With the amount of rain damaged hay, the price spread between higher and lower quality alfalfa seems to be widening, but limited sales prevent a clear picture of the market.

In Idaho in most growers were able to take three cuttings this year, and many were able to take a fourth cutting. Untimely rains caused damage throughout the season. Extreme heat and irrigation water shortages in some areas also took a toll on hay production, contributing to the lack of dairy quality hay available this season.