Regional Economics to Influence Hay Prices Most in 2018
For many livestock species, alfalfa is a critical component of the diet. As we look to 2018, national hay prices aren't expected to soar, but look for regional economics to play a heavy role in the price you pay at the farm gate.
Rising highway costs are making the expense of delivering hay more of a consideration, which is resulting in very regionalized hay prices, according to Dan Undersander, a member of the University of Wisconsin Madison forage team. The latest Agricultural Prices Report from USDA shows the national average price for alfalfa was $152 per ton in October. While it's important to note that price is representative of all quality levels, let's compare it to the average price in several states: $185/ton in California, $205/ton in Kentucky, $219/ ton in New York and $215/ton in Tennessee.
What causes these price differences? Undersander says it is a combination of regional economics and location.
That's your Land and Livestock Report-I'm Russell Nemetz.