UNL CropWatch Oct. 29, 2010: Profit Opportunities Open for High Quality Hay
October 29, 2010
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Persistent spring rain, insect damage, fewer acres, and winter injury have contributed to a shortage of good quality hay throughout much of the Midwest.
Last spring, alfalfa acres decreased as fields were converted to row crop production. In addition, the cool, wet spring reduced dairy quality hay production.
This is good news — at least for Nebraska hay growers. The market for high quality alfalfa is looking strong this year, opening up opportunities for profitable sales.
If a buyer offers $150 per ton for your better alfalfa, could you buy other hay nearby at $60 to $70 per ton that you could make work for your animals? If you can, maybe you can sell high, buy low, and pocket the profits.
To find these buyers, you can post notices at truck stops, place ads in newspapers and magazines, or set up a sign by your driveway, as you’ve always done.
To reach more buyers more effectively, you also might consider placing your hay on a computer list in one of the dairy states. You also could work with dealers or become a member of a marketing group, like the Nebraska Alfalfa Marketing Association, to take advantage of their market connections. Local extension offices have information on both association membership and computer listings.
It may take a little work to buy low and sell high, but it’s an opportunity that smart operators may want to pursue.
Bruce Anderson
Extension Forage Specialist
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