Hay, the Price Went Up!
Last September, we bought alfalpha hay at $125 per ton. Today I asked one of the local suppliers how much he's selling hay for. The answer: $220 per ton, and it's all sold already. He did offer me last year's hay for $180 per ton. (Goats don't much care for old hay, so we passed on that.)
What's caused this 76% increase in just nine months? The price of hay has risen due to both production costs and strong demand. The continuing drought in California means west coast farmers are looking far afield for hay to feed their horses and cows. Plus the rising price of fuel means it costs more to plant, irrigate, cut, bale, and transport the hay. Reports from California indicate that prices there have risen from $165 per ton last year to $240 per ton this year, a 45% increase. It's likely to go higher as demand outstrips supply and the hay travels increasing distances from producer to consumer.
Also in the agriucultural sector, thanks to high fuel prices and loss of ammonia processing capacity, the price of fertilizer (primarily derived from natural gas) has skyrocketed as well. That means corn and soy both cost more to raise. Some farmers are converting some of their land from crops to livestock so they can use the manure as fertilizer to save money.
Fertilizer cost is only one reason corn-based animal feed went up 49% in a year. The price of corn was expected to rise further even before the recent floods wiped out huge tracts of corn and other crops. With corn already hitting record highs, fertilizer costs up, and hay starting to move skyward, look for the results at the grocery store— not just in meat and dairy, but across the board.
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