Alternative Feed Costs Drive Down Kansas Hay Prices

Nov 05, 2014

Hay prices have declined in south-central Kansas, following falling prices for feed alternatives such as soybean meal, cornstalks and distillers grains, believes Roger Black, an Arkansas City grower with about 600 acres of alfalfa and prairie hay.

Black estimates current prices for 200-RFV alfalfa in large square bales at about $250/ton. That’s about $30-50/ton less than where prices were last year at this time. Large squares that test at 175 RFV sell for $218/ton – $32-82/ton less than they went for last October.

But hay prices could change as commodity prices increase in the days to come, Black says. Soybean meal jumped by $50/ton in the past week or so, he notes.

“I think that makes alfalfa hay a lot better buy. I haven’t seen that playing in the market yet, but I can’t help but believe that it’s going to happen on the better-end hay. I think we’re in the process of sorting out where these hay prices need to be in relation to alternatives.”

Many growers put up some rain-damaged hay throughout the season, he says.

“My perception is that we do not have any more than an adequate supply of good-quality hay; we certainly don’t have burdensome supplies.”

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Video: Why Invest in Canada’s Seed Future? | On The Brink: Episode 3

Darcy Unger just invested millions to build a brand-new seed plant on his farm in Stonewall, Manitoba so when it’s time for his sons to take over, they have the tools they need to succeed.

Right now, 95% of the genetics they’ll be growing come from Canadian plant breeders.

That number matters.

When fusarium hit Western Canada in the late 90s, it was Canadian breeders who responded, because they understood Canadian conditions. That ability to react quickly to what’s happening on Canadian farms is exactly what’s at risk when breeding programs lose funding.

For farmers like Darcy, who have made generational investments based on the assumption that better genetics will keep coming, the stakes are direct and personal.

We’re on the brink of decisions that will shape our agricultural future for not only our generation, but also the ones to come.

What direction will we choose?

On The Brink is a year-long video series traveling across Canada to meet the researchers, breeders, farmers, seed companies, and policymakers shaping the future of Canadian plant breeding. Each week, a new story. Each story, a piece of the bigger picture.

Episode 3 is above. Follow Seed World Canada to catch every episode, and tell us: Do you think the next generation will have the tools they need to success when they takeover? How is the future going to look?