Farmers might be wondering if straw prices will climb enough this autumn to make selling it more beneficial than leaving it on the field for its nutrient value.
Doon Pauly doesn’t think so.
“Traditionally, the market price on straw has barely been above the nutrient export level,” says Pauly, a crop specialist with Alberta Agriculture in Brooks.
The dollar value attached to the nutrient export level exactly follows fertilizer prices. For 2008, that nutrient export level took a big jump.
“This year, more than ever, it’ll be tough to sell straw and get a dollar value that’s above what you’re exporting from the field.
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“Straw is loaded with potassium and potassium prices have risen dramatically. There’s also low levels of nitrogen and phosphorus. So straw is suddenly worth something.”
According to the July 28 issue of Alberta Agriculture’s Agri-News, the fertilizer replacement cost for straw is now $39 per ton.
That’s a significant cost compared to the fertilizer replacement cost for alfalfa at $94 per ton. The difference isn’t simply the dollar amount.
The main difference is that alfalfa is grown as a commodity for sale. The producer pumps fertilizer into the ground knowing he will have something to sell.
On the other hand, straw is only a byproduct of growing grain.
Pauly says with those kinds of numbers, farmers should not consider straw as a waste product. He says there are factors other than nutrient replacement that must also be accounted for.
With large round bales, baling and handling costs are about $13 per bale in the field. With small square bales, handling costs are about $1 per bale in the field.
Most grains produce 40 to 60 pounds of straw per bushel. Some beef budgets, such as the one worked out by Manitoba Agriculture, say that straw in a beef operation has a value between one and two cents per pound.
“That’s too low. I don’t think anyone here would sell straw that cheap unless there’s a trade-off with manure going back to the field,” says Pauly.
“Producers today are very much in tune with what their fertilizer costs are to grow that straw. I don’t think anyone would give it away for a penny per lb.”
Near Saskatoon, Luc Marengere buys and sells hay and straw, and also hauls bales.
“I expect straw prices to be up because of fertilizer prices. Last year, field price on straw averaged $15 for a 1,000 lb. bale. I think we’ll be looking at a field price this year of about $20.”
