BRODERICK, Sask. – Saskatchewan could use its irrigation resources to make inroads into lucrative international export markets for timothy hay, says an irrigation agrologist.
Korvin Olfert of Saskatchewan Agriculture said timothy acreage needs to double to keep two Outlook-area hay compression plants working at full capacity.
“The sky’s the limit,” he said, citing strong returns for the high value crop that is bought mainly to feed horses and dairy cows in Japan.
Olfert said timothy area has increased to 7,000 acres from 5,000 in the Outlook area in the last two years. As well, there are an additional 7,000 dryland acres in eastern Saskatchewan, although production is one ton per acre compared to three on irrigated land.
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Second cut on irrigated hay is expected to come in around two tons per acre, he added.
Prices were strong last year on premium cut hay at $200 a ton and are expected to fall to around $160 this year, largely due to the stronger Canadian dollar.
“It’s the highest value forage crop you can grow,” said Olfert, who compared it to alfalfa’s $85 price per ton.
For further comparison, he cited similar returns from dry beans. Corn silage comes in around $700 while potatoes are the highest at $1,300.
He said Saskatchewan is a relatively new player when it comes to export hay, but lower land prices mean it can produce hay more cheaply than the United States. The product is also superior in quality, he added.
Olfert said timothy is a shallow-rooted crop that craves water and is ideally suited for irrigation.
A well-managed stand can last up to 10 years, with weed control critical to help get it established. He advised producers to prepare a field a year before seeding.
Research is focused mainly on fertility management at Agriculture Canada and the Canada-Saskatchewan Irrigation Development Centre in Outlook.
Olfert would like future research to explore whether hotter weather alone accounts for southern Alberta being able to produce about a ton more irrigated timothy hay per acre than Saskatchewan.
He said growing markets, extra capacity in processing and the opportunity to increase the profitability of irrigated land make this a good time to enter the timothy market in Saskatchewan.
Jody Rysavy of Green Prairie, a company marketing timothy to Japan, said prices have increased every year except this one for the last 15 years. The highest payouts were last year.
He called this year “a market correction” and blamed it on a stronger Canadian dollar and softer Japanese economy.
“We hope it’s just a hiccup,” he said.
His advice to growers is “to hang in there” and produce a high quality product to ensure the best price possible.
