The dark days of winter are here!

As we approach the winter equinox and the sun sinks further in the Southlands, farmers focus is drawn to planning, feeding, repairing equipment and of course kicking back by the fire musing about what we did and what we can do.  For many of those in the hay and forage industry whether growing and harvesting alfalfa hay or feeding dairy and stock cattle, it has been a very tumultuous year.  Impute cost have soared while sales receipts whether from hay sales or milk, has left almost everybody in the related industries awash in red ink.

We just got back from the Western Alfalfa Conference at Reno, Nevada and economics was the focus of the day.  Though a lot of the grower participants (and there were 700 registered) felt cash poor, the interest was very high to get information on where the industry is headed and what new technology is out there to improve the bottom line.

Reports from the market news gurus as well as the dairy industry were both guarded and very positive.  Both industry representatives felt that the bottom of the milk and hay markets is behind us and the process of rebuilding has started.  Milk prices have rebounded to the $14 /cwt level and hay prices have increased by about $5 a ton.  Neither is at profitable levels, but in the right direction.

Commercial exhibitors at the conference had a lot of interest in products that hold promise to improve yields and cut costs but few sales were inked in.  Hay growers are playing it close to their vests, pinching their budgets and keeping expenditures within reason.  Without question, a very healthy trend today.  The high rolling attitude many succumbed to with the $200 hay and $20 milk of 2007 / 2008 increased debt due to expansion and cause a lot of hardship when the prices dropped like a rock last spring.  Those that used the high prices to pay down debt are in a much stronger position today.

This is my first issue of a commentary I intend to make on HayTalk.com on a weekly basis.  I will be addressing economic as well as political issues that I see affecting our industry.  I intend to relate how closely related almost all crops are and how the ebb and flow of acreages in individual crops have a very direct effect on almost all crops.

Water is the key issue in the Western States and has had a direct effect on total acres planted to alfalfa.  It is probably the number one consideration in the planning process of what to plant ahead of both prices and marketing.  All decisions are related to water and I will be watching it closely as I comment on the fascinating present and future of the hay industry.

Allen Hurlburt, CEO of H & M Gopher Control
Tulelake, CA
hurlburt@cot.net
www.handmgophercontrol.com