Like alfalfa seed, timothy seed prices will likely be weak in the next year or two.
“The timothy outlook isn’t all that great for the next couple years,” said Kurt Shmon of Pickseed Canada.
European growers have had a good crop and weak currency. That makes Canadian timothy seed unattractive for import.
For common seed grown in 2000, Shmon sees prices of 40 to 42 cents per pound, and up to 60 cents per lb. for proprietary seed.
Prices for common seed grown in 2001 will likely be 30 to 35 cents per lb., he said.
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A large European crop of perennial ryegrass is also keeping out imports of Canadian seed, said Jack Zimmer of Idaho-based Seed Specialists.
Zimmer said orchardgrass may provide some short-term market opportunities.
Demand is strong for orchardgrass, and United States buyers are short on supply.
Shmon pointed to reed canary grass as a bright spot in the market. Poor yields have led to above-average prices.
Birdsfoot trefoil markets are still slow.
Last year, a large South American crop led to massive imports, said Zimmer. Those imports have now stopped.
Canada is becoming a major player in tall fescue markets, said Zimmer. But he warned growers that production must be balanced with demand if stable prices are to continue.
After years of tanked prices for alsike clover, farmers drifted away from growing the legume.
Zimmer noted high prices for alsike clover in the past few years have finally coaxed an increase in production.
But in the meantime, buyers have found an alternative in white and medium-red clovers.
“We’ve got a supply, but we’ve got to rebuild the demand,” said Zimmer.
Alsike clover seed prices fell from 90 cents per lb. at the start of the year to 40 to 50 cents per lb. now, said Shmon.
The market for medium-red clovers has also been stagnant.
But the market for yellow blossom clover seed has picked up said Shmon, from 18 to 22 cents per lb. for the 1999 crop to 35 to 40 cents per lb. last month.
Markets for this legume seed may benefit if the U.S. government chooses a shorter set-aside program in the coming year, he said.
Another bright spot in forage seed markets is turf grass seed, particularly proprietary varieties, said Zimmer.
“Stand back Canada. You’ve got production contracts headed your way,” he told growers at a meeting Jan. 8.
Demand is strong from homeowners, sports facilities and landscapers of industrial parks.
But because of population pressures in major growing areas in Pacific Northwest states, turf grass expansion will happen in Canada, said Zimmer.
A variety of U.S. government programs provide funding for growing native grasses, said Zimmer, adding wholesale prices for reclamation species can run as high as $10 to $12 per lb. (US).
“This is the hot market right now,” he said, adding programs and strong prices won’t last forever.
Species that are hard to produce will continue to have high prices, he said.
He predicted growers will see more contracts in the future as companies develop proprietary varieties and mixes for specific uses, such as preventing erosion, cleaning up soils on mining sites and for planting after forest fires.
The fires in Montana last summer helped spur demand for native seeds, said Paul Gregory of Interlake Forage Seeds.
He sees strong opportunities in the market with growing awareness about biodiversity. Unknown species of native grasses can obtain attractive prices.
One farmer in the Fisher Branch, Man., region made $20,000 last year by harvesting a unique species of sloughgrass he found on his land, said Gregory.
Last year, big bluestem returned well over $1,000 per acre to growers, said Gregory, because of strong yields and demand.
However, he doesn’t expect those kinds of returns this year.
In the native grass market, the trick is to have the right species for sale at the right time, said Gregory, who said he spends 30 to 40 hours per week talking to buyers and investigating markets.
