Hay Making Tips 2019/20

The short answer is ABSOLUTELY – YES. Every year, around 10 million tonnes of fodder (hay, straw and silage) is made. Total value is around $2 billion. Approximately half is traded and half retained for on-farm use.

This being said, buyers are increasingly interested in quality hay. Growers with quality hay have been, and continue to be, rewarded.

Quality hay will often out-perform most crops on a gross margin per Ha basis. Fodder crops provide an important weed and disease management strategy and these ‘hidden’ rotational benefits need to be considered.

Additionally, fodder crops allow grazing to occur earlier than with a grain crop and, in some regions, facilitate double cropping. Drought, frost, etc can result in non-traditional hay crops being a very viable income opportunity.

The short answer is – NO, we do not believe so. Historically, Feed Central always seems to run out of good quality hay to sell.

The reality is that animals eat 365 days per year.

Large volumes of hay are made nationally in Spring during a 90 day window.

Hence there can be an oversupply in spring/summer. This leaves a commercial opportunity for shedded product and selling in autumn/winter.

The shortage most often eventuates during autumn and winter months. There is a long-term market opportunity for good quality hay. This market is growing and has historically been under-supplied.

Quality hay will often out-perform most crops on a gross margin per Ha basis. Fodder crops provide an important weed and disease management strategy and these hidden rotational benefits need to be considered.

Additionally, fodder crops allow grazing to occur earlier than with a grain crop and in some regions facilitate double cropping. Drought, frost etc. can result in non-traditional hay crops being a very viable income opportunity.

Any grass, pasture, cereal, legume or oilseed that will have a good feed analysis can be cut for hay. Examples of these are below:

Lucerne Hay: Lucerne makes very nice hay and can be expected to feed test very well. Irrigation water for lucerne production is short, therefore expect low supply. Good lucerne hay will be in strong demand. Dryland lucerne is also popular.

Cereal Crops: Wheaten hay provides exceptional feed analysis in drought years especially when frosted. Consequently, it has created a very strong position in dairy and feed rations. Expect demand for frosted wheaten hay to be strong.

Barley Hay has also proven to feed test very well.

Oaten Hay has been available for many years and while it has not been producing feed test results comparable to wheat or barley, it is an exceptional product and can be expected to be in strong demand.

Canola Hay: Canola does feed test very well, but it has a different taste and smell. Buyers either love it or hate it. It is not the purchase of first choice for most hay buyers. There is a slightly higher chance of high nitrates in canola than in another other hay. Canola Hay sells well in drought years. Canola hay must be cut with as much flower as possible.

Pasture Hay: Any pasture with strong lucerne, rye or clover content will feed test well and should be in good demand, with pricing subject to the feed analysis.

Peas, Vetch, Beans etc: Expect very strong demand for these lines, especially where the feed analysis is good.

During 2018 and 2019 we have seen some extremely high/record prices for product selling through Feed Central. Cereal hay was trading between $350-$500 per tonne ex-farm, with Lucerne prices also being inflated at $550-$700 per tonne ex-farm.

Based on historical experience and depending on quality, storage and location, cereal hay will generally market from $130-$300 per tonne ex-farm and Lucerne around $200-400, and this is what we expect to see in this coming new season.

Mixed low legume content pasture hay, summer forages and canola earns approximately $30 less (per tonne) than cereals. Vetch and peas with a good feed test will sell for $30-50 (per tonne) less than Lucerne hay. Forage sorghum hay can trade between $30-50 (per tonne) below cereal hay.

Feed Central has been in the process of inspecting new season crops that are still standing in paddocks across Eastern Australia.

At the time of this booklet being released (Sept 2019), extremely high ‘drought driven’ prices had been seen in previous months. We expect these to be ‘reset’ come new season.

It’s important to remember that livestock feed 365 days of the year, not just when you are making hay.

Unlike the grain industry, the fodder industry has no big accumulators, storage/warehousing systems, futures markets, very few speculators and generally only operates in the physical market. This is probably a good thing; however, it does mean that at times the fodder industry works slower than the grain industry, but it still works.

For this reason, having hay sheds on your property provides multiple benefits. A shed gives you the ability to wait for ideal market conditions in which to sell your product. It also allows you to engage in forward contracting as buyers always request for their product to have weather protection. Sheds can also significantly boost the market value of your property, and do not lose value over the years, despite being on your depreciation schedule.

Even if you do not have a shed, be prepared to get bales stacked ASAP after baling to avoid weather damage on paddock-stacked bales. You are better offwith stacks 6 high if a rain event comes along rather than risking every bale being affected.

Considering the points above, a marketing period of 1-6 months after baling is realistic, but depending on seasonal conditions, possibly even 6-12 months, which is similar to many grains. Remember, buyers need hay all year round, not just when you are producing it, so storing and selling later can be an exceptional option. The most efficient place to store hay is on your farm.

Feed Central’s Marketing Services program connects buyers and sellers 365 days of the year.

This being said, Feed Central undertakes an extensive Forward Order program. This program puts contracts in place between suppliers and buyers. The contracts are tested, binding and enforceable.

Remember, buyers want hay 12 months of the year, not just when you are producing it.

With rising fuel prices, achieving legal pay loads on trucks is one of the most important things to consider when making hay. Legal pay loads are determined by bale dimensions and bale weight.

In the Feed Central system, buyers are quoted delivered prices. Obviously the heavier the bales are, the lower freight cost per tonne will be. Growers with heavy bale weights will often get a higher ex-farm price as the freight component is cheaper, so even though the supplier’s ex-farm price is higher, the buyer’s price is lower, so EVERYONE’S A WINNER.

High density large square bales, such as those made by the Krone 8 String Balers and especially the 8x4x3, are very popular because you achieve an excellent load on a Drop-Deck or B-Double trailer and most front end loaders can handle the weight. Heavy bales will achieve pay weights in general, so focusing on achieving heavy weights regardless of the bale configuration will always be of benefit to your operation.

If you must make round bales, consider 4×4 bales which have freight advantages over 5×4 rounds. Small square bales are a viable alternative for niche markets.

High density large square bales are normally cheaper to make when calculated on a per tonne basis. It is also quicker and easier to move a large volume of large squares both on farm and on trucks.

Do not underestimate the importance of this. Bale weights and sizes are the area where smart growers maximise their returns and create huge efficiencies in their operation. In very simple terms imagine all the extra work and man hours required to 500kg bales off your paddock verse 750kg bales. Think of the cost. Now multiply this tenfold as you think about loading, transport, unloading etc.

Maximum efficiencies are gained in HD 8x4x3 bales.

Almost every year hay out-performs grain in gross value per ha. Yes, the work is there but so are the rewards. The rule of thumb is that hay yields approximately twice that of grain. This rule is very relevant when crops have bulk but lack soil moisture to make grain, especially after a frost.

To highlight hay’s potential using the rule, Feed Central has inserted a simple gross margin budget below which provides space for growers to do their own figures. The calculation compares gross margin per hectare from harvesting grain to making hay. Please go to the Table on the next page to see your budget chart, which may be helpful to you.

Some experienced farmers and contractors simply multiply the grain yield by 2 (ie. hay yield can be expected to be double that of grain).

However we advocate using one the following methods:

ESTIMATING HAY YIELD : METHOD 1

1. Cut 1m2 of crop at the height you will cut at (NOT ground level)
2. Get kg/m2 fresh weight using an airseeder or similar scales
3. Multiply by 10 to calculate t/Ha fresh weight
4. Assume 20% – 30% * of fresh weight makes it into a dry bale – multiply by 0.2 or 0.3 to calculate hay yield t/Ha
5. Repeat at 4 or 5 paddock locations

ESTIMATING HAY YIELD : METHOD 2

1. 1. Cut 1m2 of crop at the height you will cut at (NOT ground level)
   2. Dry in 50°C oven and weigh after a minimum of 24 hours to calculate kg/m2 dry weight at approx. 12% moisture
   3. Multiply by 10 to calculate t/Ha dry matter
   4. Assume 80% – 90% # of the dry weight makes it into a bale – multiply by 0.8 or 0.9 to calculate hay yield t/Ha
   5. Repeat at 4 or 5 paddock locations

* The % conversion increases with crop maturity. For crops that have flowered and are into grain fill, assume closer to 30% as the final hay yield estimate. Less mature/fresher crops use 20-25% as final yield estimate.

Final hay yield will depend on losses after cutting due to weather, raking or baler set-up.

Lucerne

• Ideally 5-10% of the plants should be flowering. Pre-Flowering has better Feed Tests and higher yields over the season.

Cereal

• Ideally 80-100% of the plants should be flowering.

Canola

• Full flower with little to no pods.

As a general rule, the younger a crop is cut, the higher the ME and CP values on the feed analysis test will be; however, bulk yields peak around full flower / early milky dough seed, so a balance needs to be found. Crops cut pre-head emergence are generally very hard to dry down/cure.

It is important to take care when the crop contains plants at different stages of maturity. This is likely to be the case for drought-stressed crops. Heads that are still in the boot can cause issues for curing time.

As a general rule, the crop should be cut at stubby can height. This allows for breeze to pass through and under the windrow, assisting in curing. Most importantly, this assures that the windrow is up off the ground following rain, preventing significant damage and downgrading.

Cutting on a slight angle across the airseeder rows is another method to keep windrows off the ground.

For Canola in particular, rake as early as possible and only once to retain as much leaf as possible in the bale.

Bale when the hay is dry NO MATTER WHAT, NEVER BEFORE. Regardless of the product you are baling, the SINGLE MOST IMPORTANT procedure is baling the product at the correct moisture level. Feed Central’s Delmhorst moisture meter has a windrow attachment for hay sitting in the windrow. There are also other proven techniques in determining when the hay is ready for baling.

If deciding to graze the crop or cut for hay, chemical withholding periods need to be considered. This proves the benefit of keeping accurate records of chemical application rates and dates. A Commodity Vendor Declaration (CVD) of these details will need to be completed if the crop is cut and sold as hay.

Yes, Feed Central can advertise your straw for sale and we often have contracts open.

Feed Central sells more fodder types across more areas than any other company in Australia. Straw has many uses, including roughage in feedlot diets, maintenance of dry cows or as a drought supplement, garden mulch, mushroom production or animal bedding. It has limited nutritional value; on a dry matter basis straw is expensive to transport because legal pay loads of straw on a truck of any size are rare. High density bales & heavy bale weights are highly desired advantages with straw.

As a general rule, straw prices may be half the price of green hay. This being said, growers must consider the costs of baling straw and expected ‘straw’ yield. A general rule is: if a grain crop yields a tonne of grain, it will yield a tonne of straw.

Remember, the hay stored on your farm is a valuable asset so you must protect it. Listed below are some valuable tips on where to store your hay and protecting your asset correctly.

Obviously, the best place to store your hay is in a hay or machinery shed. Move machinery out of the shed (even the one with the green paint) and put the hay in there.

IF YOU HAVE A SHED, PUT THE HAY IN THE SHED.

If stacking outside, do not stack round bales on top of each other, the water just runs down one onto the other. Simply stack them sausage style, with a ute distance between rows, that way you can get between rows to slash or spray etc.

Hay naturally sheds water, but when hay sits in water it absorbs it; therefore damage is more likely on bottom bales than top bales. Always ensure hay stacks are not located in old floodways or low-lying areas. Also keep in mind that moisture will rise from soil inside a shed.

Fence lines can divert local water during a heavy downpour. Consider carefully where you position stacks along fence lines and contours.

Create good drainage between stacks so water does not flow off one stack and then underneath another. Grade a small diversion bank if this could be a problem.

Store your hay in an area that is well drained and dry, with good all-weather access. Fodder sales often come during wet / cold periods, so good truck access can make or break a sale.

Stack large square bales high, and if no shed is available, cover the top bales. Tarps are low cost and effective.

At Feed Central we have seen both excellent and terrible hay tarping techniques. We have compiled the following to help you protect your hay investment.

Cotton module type tarps are best. These tarps have fitted curtain edges and eyelets every 1 -2 m. Make your hay stack resemble a cotton module as follows:

Make stack sizes of approximately one semi load – big tarps are too hard to keep on, and blow in the wind causing tarp damage and leakage.

ONE BALE WIDE – do not go any wider; it is too hard to keep the tarp down and creates shallow points for water to lay and soak through the tarp.

HIGH STACKS – 8x4x3 bales should be stacked a minimum of four high or five high if made well. The higher the stacks the less exposure, especially to bottom bales.

TARPS ARE NOT WATERPROOF – only water-resistant. Therefore, the idea is to shed water quickly. Do not allow dips or hollows in the top where water can lay.

PROTECT THE TOP – Cap tarp only. When you tarp the sides, it doesn’t allow hay to breathe, so if water does get in, it can’t get out. Leaving the sides open allows moisture to get out.

PROTECT THE SIDES – Hay stack bales will naturally shed any water that runs down the sides so long as you create hay stacks with straight edges – no bale should be sticking out wider than the bale above as water can run off the tarp, down the sides and then back up through the stack via a ledge created by a bale sticking out (capillary action).

PROTECT THE BOTTOM – Locate stacks on gentle slopes, irrigation channel banks, or gravelly/sandy ridges where water drains away quickly and does not pond around the stacks. Make sure there is good drainage on both sides.