Oh the Hay

Blaithin

Member
Livestock Farmer
Location
Alberta
I just don't understand some of the hay producers here.

People are already whining about the price of hay this year (whole other rant about them) and the same old hay producers are replying they need to charge such high prices because yields are low, land and equipment costs are high. Some had bad weed problems and some needed lots of fertilizer. Blah blah blah.

Why, as a buyer, is that my problem?

First cut is only JUST coming off now so yields are fairly hypothetical at this point. Other than the fact they were lower last year. Yet what other commodity would a producer expect to get more for selling just because their yields were lower?

And what other commodity would a producer be able to demand more money for because they bought new equipment or expensive land or needed extra fertilizer or herbicides? I can tell you the cereal, oilseed and pulse crop producers don't get this luxury.

There are a few things I recognize as effecting market price of a commodity. Supply, demand, location and environmental factors. I do not recognize land and equipment costs and maintenance as market effecting. As a producer, be it crops, hay, veggies or livestock, upkeep and expansion should be factored in to what you can earn within the market. Not charge more and hope you can get it to allow you to do what you want so that you can charge more.

Maybe it's because hay relies so heavily on private sales while other commodities go through auctions and elevators that help stabilize their prices... Who knows. But their logic still baffles me.

Does the UK suffer from such backwards pricing?

(As a disclaimer, I'm not against prices rising. That's a part of life today. Although I'm still going to source the cheapest of good quality I can find. I'm simply against using land and equipment costs as a reason for driving up prices. Use older equipment and don't buy more expensive land if you can't afford it without jacking up prices stupidly high. Like any other producer has to do.)
 

holwellcourtfarm

Member
Livestock Farmer
It sounds different to the setup here. Prices here do fluctuate between years but not by much unless there's a really bad year. Nobody can know what effect there will be on price until the whole harvest is over.

Do you buy it straight from the field or as you need it over winter?

I agree it's not the buyers problem if the producer decides to invest in new equipment.

It'll be interesting to see what others think?
 
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Blaithin

Member
Livestock Farmer
Location
Alberta
It's usually cheaper to buy off field. Waiting until winter hits and then you're kind of between a rock and a hard place. Don't always have time to shop around. Plus when winter comes there's never a guarantee that you can get in to bale stacks. Or get a truck load into the yard. Just easier in the summer and fall.

I'm not against the stupid high prices. Those that are selling bales for $150 are usually closer to centres like Calgary where there is a high demand and it's a large portion of horse people. We all know how smart horse people can be :rolleyes: More money than sense a lot of the time. If people are getting that price when they're asking it, fine. Doesn't mean I want to pay it :ROFLMAO:

But if you're asking that say that it's because that's what people are paying. Maybe they always pay that or maybe they just can't find hay anywhere else so they have to pay it. Don't say you're pricing it that way because you just bought a new tractor or another quarter or because your yields are down. Crop yields are down too, they don't get to ask for more. And I'd like a quarter of land but I don't think people will pay more for my beef just because I bought one and have to pay it off. It's irksome.
 

Blaithin

Member
Livestock Farmer
Location
Alberta
Hay making in The British Isles is not for the light hearted. The weather is so fickle. It is a big gamble and one that should be rewarded well, for getting it right.
I figured your haylage would be more comparable to our hay. There is haylage here and it is gaining popularity but it's still not nearly as common as hay.
 

cows sh#t me to tears

Member
Livestock Farmer
Supply vs demand, simples:rolleyes: $320/t for lucerne hay here atm( on farm exc gst. Much higher in produce stores closer to major cities.). Price driven by low availability of water over summer and demand from chaff mills. Low pasture hay stocks due to a poor spring last year. Cereal hay prices high due to lack of other options. Was plenty of dairy demand. This may change now due to exceptionally poor milk prices:cautious: If there is little demand prices fall, high demand prices go up. Just how it is..You could try taking out a contract at a weighted average price long term? Pay a bit more in a low price year for a trade off of a lower price in a high price year...
 
Hay is a commodity like all others, but a bulky heavy one so the market is often localized - cheaper areas don’t compete to more expensive areas easily because haulage kills the price advantage.
Obviously the price differences mean merchants can find a gap and do well.
Its normal for producers to try their luck, wouldn’t you? theyre making a living afterall.
As you say near cities the price rises, because their are lots of small buyers needing it, so supply vs demand within a reasonable cost/delivery distance is higher.
your best bet, or I hope it would be, is use the same people every year and agree a fair price. If their smart they will do business fairly as its in everyones interests.
 

Nithsdale

Member
Livestock Farmer
Hay making in The British Isles is not for the light hearted. The weather is so fickle. It is a big gamble and one that should be rewarded well, for getting it right.


We were hoping to do a few acres this year - shed is empty, and we have plenty silage.

Got a field down but weather isn't suiting...

Dad said yesterday, looking at the forecast, he wasn't sure how he and my grandfather made 100+ acres of small bales every year, without fail (n) he doesn't believe the weather is any worse now either, saying it goes in cycles...
 

Blaithin

Member
Livestock Farmer
Location
Alberta
I don't really care what they charge. It's when they try and validate why they charge what they do with "I just bought land and a new tractor" or "Yields are low so I have to charge this to make the same as last year"

These phrases bug me because it's like they're putting themselves above the other commodities who don't get to raise prices because of new equipment and don't get to ask more because their yields are lower. If yields are low but supply is still met then don't jack up prices. If yields are low and supply is high than prices will rise accordingly.
 

Blaithin

Member
Livestock Farmer
Location
Alberta
Hay is a commodity like all others, but a bulky heavy one so the market is often localized - cheaper areas don’t compete to more expensive areas easily because haulage kills the price advantage
Trucking doesn't really kill the advantage here but ignorance about it will.

A whining moaner about prices the other day thinks it's unfair hay is cheaper up north (completely different markets) but won't pay to truck it down here because "it'll be $150 by the end anyway" Her math sucks. I was quoted $700 to haul a load of round bales from around 4-5 hours away. Most semis can haul 36 bales, that's en extra $20 a bale which still leaves the norths cheap hay at the price of the average hay down here.

Who is doing this? Farmers that can use truckloads of hay. Who's moaning about it? People who only need 10 bales for their horses so end up paying the highest prices because they can't be bothered to buy a load with someone else or can't store extra or don't know where to shop around to find lower prices.

A lot of the pricing also seems skewed because it's the big hay producers that advertise online so online you get the high prices. Meanwhile Joe Farmer doesn't even have Internet and sells his hay by word of mouth and a poster down on the board at UFA.

Pricing is fluid. It's always changing.
 

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Expanded and improved Sustainable Farming Incentive offer for farmers published

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Expanded Sustainable Farming Incentive offer from July will give the sector a clear path forward and boost farm business resilience.

From: Department for Environment, Food & Rural Affairs and The Rt Hon Sir Mark Spencer MP Published21 May 2024

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Full details of the expanded and improved Sustainable Farming Incentive (SFI) offer available to farmers from July have been published by the...
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