A decrease in acreage and inflation may be causes.
by Jeff Holmquist, HayandForage.com
Hay prices have remained strong during the first part of 2014 despite decent carryover stocks and adequate production, according to Matt Diersen, ag economist with South Dakota State University.
“I’m surprised hay prices are as high as they are,” he says.
One reason for the price stability is the slight decrease in U.S. hay acres planted in 2014. USDA’s June Acreage report estimated that 57.6 million hay acres will be harvested this year, down from 58.3 million harvested acres last year.
“Fewer acres to be harvested across the country means what’s out there you have to fight over,” Diersen says.
The other contributing factor is the inflation seen across the entire ag sector.
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Posted by Haylie Shipp