The State of the Hay

In central California, late spring through late fall is as dry as a bone, and vegetation quickly turns dry and brown (or "golden", if you will).  The nutritional value of this vegetation is quite low, as the grasses have since gone to seed, which pushes the valuable nutrients held in the plant out to the seed heads, and leaves the body of the plant left as hollow stems of lignin and cellulose.  These fibrous materials are not easily digested, and most of them pass through the animal unmodified, giving no energy or other nutrition to the animal as it goes.  Only the rugged, deep tap-rooted plants can survive, and their thick skins and defensive physiology leave the animals hunting for something - anything - else to eat.

For this reason, we rely to a large extent on hay that we buy in from producers in the central valley.  Our water is too expensive to irrigate, so it makes much more sense for us to buy in hay from other producers that have access to less expensive irrigation.  Most of our hay comes from the Los Banos area, where water tends to be much more available than other areas of California.

This year, because of the drought, hay is in high demand, but also in short supply.  We have received quotes from a wide array of sources, and thus far, our prices have come out to be comparable to our deliveries from last year, though we bought later in the season last year (higher price), so the earlier purchase this year at the same price truly represents an increase over last year, when viewed relative to the part of the season we're in.  These prices can also change dramatically going forward.  We will purchase a truck load (around 450 bales), and hold onto as many of these late into the season as we can.  If prices go high enough later on, we may sell some bales, although we may hold onto the extras for next year.  The lowest price we were quoted was $16 a bale, and we may be able to recoup some of these costs later on at $19 or $20 a bale.  This winter is forecast to be another La Nina year, so it may benefit us to hold onto the hay in preparation for another (potentially) dismal rain year, so truly there are no "slam-dunk" paths forward.

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