Early Hay Markets Down, Farmers Still Optimistic

Emmett--Hay reached record highs in 2008, but could set record lows in 2009 if the dairy market continues to decline.

Hay prices dropped nearly a $100 a ton after national and global milk prices tanked after the economic slowdown that started late last summer.

Despite the doom and gloom alfalfa is still one of Idaho’s biggest cash crops according to U of I economist Paul Patterson. He told the Capitol Press that hay can still be profitable with good yields and quality. Emmett farmer Tracy Walton agrees an is undeterred by the sluggish market.

“Im operating the same, the dairy I sell to pays me monthly and we'll be doing that again this year,” said Walton. “Hopefully we’ll work together on other things too; just to keep our costs down. I work close with this dairy, I want to see him do well.”

Walton will miss the record high prices he got for hay last year when Class III milk prices broke the $20 hundredweight mark last summer.

“I tell ya, Ive been selling to this dairy for 15 years, its tough, we have lowered our prices this year quite a bit from last year, I hope milk prices come up a little bit. I feel sorry for the dairies, prices shouldn’t be that low.’

In Idaho, dairy hay went for $220 to $260 last summer while premium dairy hay sold for $190 to $225. Walton says those prices have dropped to $150 to $160 and $120 to $150, back to 2006-7 prices.

And Walton says expenses are up: "We had weevil come in this year and we had to spray for 'em; its another cost and fertilizer was pretty expensive. It was more than twice as much for fertilizer but hey it’s looking pretty good, it’s a little late than normal, but still average I think.”