On February 13th, USDA-NASS released the 2022 Census of Agriculture report. This report provides a comprehensive agricultural overview for each state and county. The report provides information on farm operations, livestock inventory, milk production, commodity production and value of commodity production. Hay (including alfalfa) production ranked in the top three for value of crop commodity production in six of the thirteen Southern region states. Those states were Virginia, Kentucky, Tennessee, Texas, Alabama, and Oklahoma.
The census is conducted and published every 5 years and is loaded with useful data about U.S. hay production. In addition to this 5-year look at hay production, USDA Agricultural Marketing Service (AMS) report provides weekly hay prices in many markets and USDA National Agricultural Statistics Service reports annual production, hay stocks, and monthly prices received by farmers. This wealth of information can aid in pricing knowledge.
Drought conditions in recent years has brought attention to hay and forage which is an important input for livestock production. There are challenges in the valuation of a hay crop. Given the differences in form, weight, quality, species of forage, and regional availability. Therefore, no reference price is established. There are market reports provided by USDA that provide some market data but are geographically limited in the south. The Census of Agriculture reports state level data.
All states in the southern region reported price data for hay, excluding alfalfa. Fig. 1 contains the reported price per ton for hay, excluding alfalfa for the 2022 Census of Agriculture. To better explain the price of hay, $/ton to $/bale will be assumed to be a 4X5 round bale at 880 lbs. If the average price was $142/ton, then the bale price was $62. Fig. 2 illustrates the reported price per ton for alfalfa for the 2022 Census of Agriculture. As previously stated, $/ton to $/bale conversion is the same calculation. The average price per ton was $229/ton, which caclulates to $101/bale.
Figure 1. Hay Price per State in the 2022 Census of Agriculture.
Figure 2. Alfalfa Price per State in the 2022 Census of Agriculture.
Article courtesy of Matthew Fischer for Southern Ag Today
