# Question---grain increases and hay prices



## downtownjr (Apr 8, 2008)

Looks like this Russian drought will likely send up into a wild ride on grain prices...which seems to me would impact feed prices...any chance this could bump hay prices up a bit as folks look to hay to keep feeding costs down a bit...any thoughts...TIA


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## Vol (Jul 5, 2009)

Could be....but might take a while. Sounds like those folks are also under dire straights with wildfire. Incredible amounts of destruction. Regards, Mike


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## steve in IN (Sep 30, 2009)

Maybe if hay gets put to corn or wheat. Most of my hay goes to dairies so unless Nebraska plants corn it wont change hay price much. It is amazing how chap trucking rates are from out west. I am using the increase in grain prices to rotate out old thin stands but am also planting new hay. It really helps my sand to have another crop.


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## dbergh (Jun 3, 2010)

A lot of hay will be rotated to wheat in my areas with 2011 prices in the $5.50 to $6.00 bu range right now. Its no runaway but it beats hay prices right now. Evidently we have too many acres of hay in production to get hay prices where they need to be. Supreme dairy test hay @ $100 is a joke (as opposed to $250 hay two years ago)when cutting on a 28 day cycle. That type of hay has to be at $150 to keep hay acres in production in my opinion. A lot of guys have kept older stands in production longer than normal because prices were so good up till this year. I foresee lots of these acres going into wheat this fall. Wheat is low cost and low water user vs: alfalfa. A big deal for us irrigated guys when pumping costs are high and water supplies questionable from season to season. A good wheat crop will gross $600 to $700 an acre easy with minimal inputs versus an old stand of hay that is grossing only $300 to $400 an acre right now and also comes with a $250 to $300 pumping bill. Not much room for profit by the time you get it in a bale at that price.


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