Race to the Bottom for Dairy and Hay

A huge dairy glut in the US has decimated hay prices. While farmers in Idaho, Oregon, and Washington cut back on alfalfa plantings in 2017, hay prices have not rebounded due to a large storage carryover. Hay production value has also plummeted. Total US hay production value dropped from $19.1 billion in 2014 to $15.6 billion in 2016. Responding to low market values, farmers grapple with the decision on whether to incorporate alfalfa into their crop rotations as US dairy output continues to rise and prices continue to fall. With hay prices now at $145 per short ton, farmers are looking at increased corn silage acreage as a more lucrative alternative to planting alfalfa. Gro Intelligence will help you to monitor the link between dairy and hay prices into 2018.