Hay growers conference features USDA speaker

MOSES LAKE — Jack Getz, of USDA Market News, should be a popular speaker at the Mid-Columbia Basin Hay Growers Annual Conference on Feb. 18.

The hay industry took a roller coaster ride the last two years. Getz will help growers make sense of the coming year.

The conference will be held at the Moses Lake Events Center on East Nelson Road. It starts at 8 a.m. and closes at 4 p.m.

Visitors may call Laurie at 509-754-2011, ext. 413 to pre-register.

According to Phil Peterson, of the Washington State University Extension office in Ephrata, the hay industry experienced a tough year in 2009. He said there were high operating costs, such as fuel and fertilizer, and lower prices.

Getz will be one of several expert speakers, Peterson said. Others will deal with fuel supply, herbicide use, fertilizer supply and forage markets.

According to Peterson, some of the jolt growers felt last year was the result of astounding hay prices in 2008. Prices in 2009 were in the traditional pricing range of recent years but much lower than 2008.

“This thing just went through the roof (in 2008),” Peterson said.

The traditional price range of hay in the years leading up to 2008 was $100 to $150 a ton, depending on quality and variety. In 2008, the price range jumped to around $250.

“There was a lot of stuff going at more than that,” Peterson said.

Several factors caused the price jump, Peterson said. One of the most significant was a major drought in Australia, which competes with the U.S. for markets in Korea, Japan and Taiwan.

Another factor  was price drops in the dairy industry. Looking for a less expensive way to feed their cows, dairy farmers bought more hay.

Still another factor was “fear” among exporters. Guessing that the supply would dwindle, they started buying hay for future need. It was a reality versus perception situation.

“We were thinking we were going to be short, but we weren’t that short,” Peterson said. “They bought high and all of sudden had to sell low. Rumor is that some exporters went out of business or will go out of business.”

As for the growers, 2008 was a great year. It meant “catching up” for many of them, Peterson said. They paid old bills and made equipment purchases that had been on hold.

When prices dropped back to traditional levels in 2009, it was back to business as usual. Those growers who used the boost of 2008 wisely were in good shape. Those who didn’t were back to the price versus costs struggle of most years.