No more cheap hay prices in the Southeast.

Many smaller livestock producers will be forced to start hay production this summer. Grass hay can be produced in the $30-40 a ton range if we get rain.

To give you some example, prior to '05, 5x6 roll sudan hay was selling for $25 a roll. In '06 I was lucky and got a truck load of low protein hay (headed out) and a load of corn stalks.....obviously little to no protein in that from a local hay producer friend of mine. The hay was $65 a roll and the stalks were $40.

Neighboring states did not suffer the drought we did and you could get online and find hay to be trucked in from other places. The hay was around $30 a roll but the trucking fee was another $40 a roll and you had no idea what you were going to get.

With this year's fertilizer prices, I'd think that the $100 per 5x6 would not be unrealistic.

Mark

Result is that there are a lot more folks after the supplies of DAP and other necessities. It's called supply and demand. One reason for grain's increase in price is ethanol for corn but a lot more people in the world are eating bread. Had articles in the NY Times just this morning about the subject. Might take a look at them.

So I thought I'd be clever and do my homework to find good companies which are fertilizer miners and invest in them to help to offset my upcoming expenses this spring. Well, on paper, that may sound like a good idea, but in reality, the stock market is caving in and with it a lot of the things that you think would be good investments, aren't.

Back in January, I tried to buy fertilizer for the season, like you can "pre pay" on propane before the season(September). Wouldn't do it. Said I had to buy at the market price when I bought it. Since we only have one dealer within reasonable travel distances, they call the shots.

Mark