Report: Hay And Pasture Land Losses Could Hit $100 Million

Sep 01, 2022

By George Jared

The economic impact of a drought that impacted Arkansas for much of the summer could approach $100 million in losses when it comes to hay and pasture field forage losses, according to a report by the Fryar Risk Management Center of Excellence. At least 20 counties in Arkansas have been designated as disaster areas due to drought, according to the U.S. Department of Agriculture.

About 75% of hay and other pasture fields in Arkansas are deemed in poor or very poor condition, the USDA’s Crop Progress report in August indicated. Arkansas livestock farmers use pasture lands to feed their animals during the spring, summer and fall. Many cut hay to feed their livestock during the winter.

“Based on the 2017 U.S. Agriculture Census, Arkansas has 3.189 million acres of permanent pasture land. Assuming changes in acreage between 2017 and 2022 are negligible, 3.189 million acres is the basis for valuing forage production intended for grazing. The 2022 USDARMA county base value of forage production for grazing is $54.51/acre in Arkansas. This implies the total value of grazing acreage in Arkansas is $174 million,” the Fryar report states.

There are an estimated 1.18 million hay acres in the state. An acre produces about two tons of hay and it sells for $153 per ton. This means Arkansas has a total hay value of $365 million, the report states.

“This summer, with drought-stressed pastures, Arkansas livestock producers had to make tough decisions about their herds. Producers had to decide whether to start feeding hay, depleting winter hay stocks, or selling off part of or the entire herd. Specifically, for Arkansas cattle producers, there is some evidence of larger volumes of cull cows and bulls coming to market. For the first thirty weeks of 2022, cull cow and bull volumes at Arkansas auctions are averaging 20% higher than in 2021,” the report noted.

The impacts will go far beyond just this summer. Hay prices are projected to stay around $153 per ton, while corn prices are projected to top $6.65 per bushel during the 2022/2023 season, the USDA projects. The number of replacement heifers, ones that produce beef calves, is at its lowest level since the USDA began tracking them in 1973, meaning this cycle could continue for years.

The impact of smaller herds and higher input costs will lead to higher consumer prices in the long run, AgriLife Today reported. At the start of the year, the U.S. cattle herd numbers were a little over 30 million head, down 2%, and that was before the summer drought that stretched across large swaths of the South including the nation’s highest cattle producing state, Texas.

Rain has returned to many parts of Arkansas in recent weeks, but it will take a sustained period of consistent precipitation to regenerate damaged fields. The heart of the state’s cattle production areas, mainly in the Ozark Mountain regions that extend from Northwest and Northern Arkansas down to the state’s center, are still classified as in severe drought, according to the U.S. Drought Monitor. Several counties on or near the Missouri border are classified as in extreme drought.

Click here to see more...

Video: Why Seed Analysts are Thriving Under Seeds Canada

Last month in Edmonton, Alta., industry leaders and stakeholders gathered to discuss the evolving landscape of the seed industry at Seeds Canada’s annual conference. Among them was Sarah Foster, president of 2020 Seed Labs and the new vice-president of Seeds Canada.

Foster, who has been on the board of Seeds Canada for over a year, has witnessed firsthand the challenges and opportunities that come with the formation of the organization. Seeds Canada was established just over three years ago through the merger of multiple seed industry groups, including the Commercial Seed Analysts Association of Canada (CSAAC). Since then, the organization has been working to define its priorities and solidify its role in the industry.

“The challenge has been allowing the dust to settle after the merger,” Foster explained. “We’ve been focused on identifying what our priorities should be and ensuring that our members, especially the seed analysts, are getting what they need to continue their professional work.”

One of the recent highlights was a pre-conference event where the three major seed labs in Alberta — 20/20 Seed Labs, SGS Canada and Seed Check — opened their doors to members. The event saw a record number of seed analysts and business professionals in attendance. Foster emphasized the importance of this transparency, stating, “It’s crucial for people to see what goes on behind the scenes. We’re an open book now, and that openness helps build trust and understanding within the industry.”

The event also featured an environmental scan and a series of discussions that fostered strong communication among attendees. According to Foster, the dialogue was both encouraging and inspiring.

“A lot of people were really inspired by the fact that Seeds Canada is moving ahead with its agenda. The seed analysts, who have always worked diligently in the background, are now being recognized more prominently,” she said.

Before the merger, seed analysts were represented by CSAAC. Now, as part of Seeds Canada, they are finding their place within the larger organization. Foster believes that the integration has been successful, noting, “I think we’re thriving. You only need to look south of the border, where similar consolidations are happening.”

As Seeds Canada continues to evolve, Foster remains optimistic about the future. “I want to be totally transparent with anyone who is a seed analyst — I’ve got your back. We’re moving in a positive direction, and we’ll do everything we can to meet the needs of our members,” she said.