Christmas has come early for hay sellers in Saskatchewan.
Prices for alfalfa bales and other hay have reached unheard of levels in parts of the province, thanks to the drought and lack of forage in western Saskatchewan and eastern Alberta.
In some cases, sellers are asking $250 a ton for high quality hay. Historically, hay usually sells for $80 to $100 a ton in Saskatchewan.
“I’ve never seen prices like this,” said Andrew Metz, who grows forage and has a small cattle herd near Holdfast, Sask.
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“(It) seems to be one of those once in the lifetime kind of years for selling hay.”
Metz, who sells hay online, said he placed an ad on the internet a couple a weeks ago, and the hay sold in 40 minutes.
Metz said most of the demand is coming from western Saskatchewan, where many farmers having been coping with a spring and early summer drought.
According to anecdotal reports, some livestock producers are so worried about forage supplies that they’re paying $200 a ton for last year’s hay.
Kelly Williamson, president of the Saskatchewan Forage Council and a producer from Pambrun, Sask., isn’t buying the rumours.
Cattle producers might pay $100 a ton for last year’s hay crop but not $200, he said.
Williamson said it’s important to distinguish between the different sectors within the hay marketplace.
“You have to remember what kind of market you’re in, if you’re feeding beef cattle or you’re feeding dairy,” he said. “I bet you there is dairy hay moving at $250 or $300 (a ton), especially if it’s close.”
As for beef cattle hay, it’s unlikely producers are paying $200 a ton, Williamson said.
“The guys that I’ve talked to, the most that they’ve paid is $100 to $150 (a ton),” he said.
“I haven’t heard of anybody paying over $150 yet.”
Keith Badinski, a hay producer and seller from Melfort, Sask., has also heard rumours about unprecedented hay prices, including a farmer from Alberta who, apparently, is willing to pay $300 a ton for hay.
Badinski said prices and demand are definitely higher this summer, but the market may change from now until the end of August.
“You won’t really know (the price) until the end of the haying season,” he said.
The forage market has changed because cattle prices are near record levels, he added.
“Now that cattle are finally worth having, people are willing to pay for feed.”
Williamson said livestock producers in drought areas shouldn’t panic because there are other ways to feed cattle besides hay.
“Don’t be afraid to get creative on how to feed your cows. Look at all your options. Look at the pellet market,” he said.
“Look at forming relationships with your neighbours for baling different kinds of straws…. If you can buy some pea or lentil straw, or some cereal straw, you might be able to get through.”
