As pasture and range conditions continue to deteriorate, according to the latest Crop Progress Report by the USDA, suggest tight hay supplies ahead. Katelyn McCullock, director and senior economist for the Livestock Marketing Information Center (LMIC), told Ron Hays that hay prices are rising.
Right now, 45% of the continental U.S. is experiencing moderate to exceptional drought conditions, most of which is in the western half of the country. Some of the areas being hit the hardest are known to produce much of the Nation’s Alfalfa Hay crop. While some of the other hay crops are produced east of the Mississippi River, a good amount is also grown in drought-stricken areas of the country. As drought conditions creep eastward, larger areas of the Great Plains, including Oklahoma, are beginning to struggle.
“Nationally, alfalfa prices hit over $200 per ton, which is important because of where we are in the marketing year,” McCullock said. “There is not going to be a substantial amount of hay brought in to decrease the price, from here on out.”