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 A Prism Business Media Publication January 10, 2006 |  
Ehay WEEKLY CONTENTS
Paper Mill Uses Recycled Water In Haying Operation
Top of the News Drought Conditions Ease In Some Areas, Persist In Others Online Program To Provide Convenient Equine Education
State Reports California Iowa Auction Report Montana
Events I-29 Dairy Conference Covers Forages, Too Midwest Forage Association Meeting Set For Jan. 31-Feb. 1 Calendar
Letters To The Editor Steve P. Chancellor writes:
Comments from Readers Send Questions & Comments To...


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Paper Mill Uses Recycled Water In Haying Operation
At a time when irrigation water is hard to find in the western U.S., an Arizona paper mill provides more than enough recycled water to grow quality alfalfa near Snowflake, AZ. Nich Kenny is an ag engineer overseeing a hay-growing operation owned by the Abitibi Consolidated, Inc.

"Our operation produces 7,000 tons of hay per year using water recycled from the paper-making process," he reports. When the 40-year-old mill converted from a virgin pulp paper-making process to using recycled paper 13 years ago, the new process also created opportunities for using leftover water. The mill produces 11 million gallons of effluent per day during the process that transforms old newsprint, magazines and corrugated cardboard back into useable newsprint paper.

The effluent is run through a tertiary treatment process to separate solids from liquids. Then the water is sent to settling ponds and an evaporation basin. When the water has reached the proper purification level, it goes directly from a 35-acre-foot reservoir into the irrigation process and is safe enough to grow crops for livestock consumption.

"We raise alfalfa with a rotation of wheat, in addition to Sordan for green-chop silage," Kenny explains. Some of the hay is used in a 1,000-head feedlot operation managed by a custom farmer. "Mid-summer rains make it difficult to make hay at the right time, so about 15% of the hay we produce is cow hay," Kenny states. The rest of the hay, sold in 100-lb bales, is retailed to local horse owners and to horse, sheep and goat owners on a nearby Navajo reservation. "Our Navajo customers typically buy between one to five bales per week, because they don't have much available storage," Kenny says. He says demand was good at the end of 2005, with hay selling for $200/ton. "I don't expect it to go down in price until the end of March," he says.

Contact Kenny at 928-536-9237.

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Top of the News
Drought Conditions Ease In Some Areas, Persist In Others
Moderate precipitation chipped away at the extreme drought over northern Illinois, with some pullback of drought conditions in northeastern Illinois, according to the latest U.S. Drought Monitor report. Parts of northern Illinois and Iowa still report precipitation deficits of over 12" for the last twelve months. Eastern Tennessee and southeastern Kentucky received over 1" of rain, which helped ease drought conditions slightly. Central Kentucky is still experiencing severe drought, according to the National Weather Service.

The forecast for the next two weeks includes above-normal temperatures and below-normal rainfall across the drought-affected areas of the southern Plains and the southwestern U.S. Generally near-normal rain and snow are indicated for the Midwest. Heavy rains in the West should taper off, except in Washington, Oregon, and northern Idaho, which can expect above-normal rains and high-elevation snows continuing.

Source National Weather Service.

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Online Program To Provide Convenient Equine Education
Hay growers marketing to horse owners may soon be able to recommend an online course offering the latest on equine nutrition and health. Michigan State University (MSU) researchers and extension educators are developing the course on current equine nutrition and health issues, such as nutritional requirements, nutrients, feeding management strategies and diseases.

"Survey results consistently indicate that the two most important topics horse owners want to learn more about are nutrition and health," says Christine Skelly, MSU animal scientist. "Survey participants also indicated that they would like to be able to study from their homes or offices because of time constraints." Skelly notes that traditional face-to-face education programs are slowly declining. People who would once readily attend a course are also limited by schedule conflicts.

The online equine course should be available this coming fall, she adds.

Source: Michigan State University.

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State Reports
California
Low hay inventories, alfalfa hay acreage and production, plus continued growth in dairy cow numbers, all combined to create a year that alfalfa hay growers will not soon forget, reports Seth Hoyt, senior ag economist, California Agricultural Statistics Service. In 2005, the alfalfa hay industry experienced record-high prices; the alfalfa hay market ran $25-30/ton higher than in 2004, which was considered to be a good market year. According to Market News, supreme alfalfa hay delivered to dairies in the Tulare area in the January-October 2005 period averaged $200.84/ton, with fair quality averaging $143.54 delivered during the same period.

A wet fall curtailed alfalfa hay planting and reduced dairy-quality hay production in 2004. That led to lower alfalfa hay acres in 2005, and proved to be a factor in lower carryover supplies. A rain-delayed start of the 2005 hay season, combined with very hot July weather and armyworm infestations in some areas, brought disappointing yields through September. Cuttings stretching into late October may have brought final yields up slightly. "If you were a grower who normally puts hay in barns for winter customers, you probably followed that pattern," Hoyt says. "If you had barns but didn't have regular winter customers, your barns may be empty or only partially filled. With record-high prices on alfalfa and other hay, there was no incentive to put hay in barns."

High alfalfa hay prices couldn't have come at a more opportune time for alfalfa hay growers, Hoyt relates. Higher input costs, including sharply higher fuel and fertilizer prices, pushed hay breakeven prices higher. Trucking had become a nightmare for growers with fewer trucks available to haul hay the second half of the season, particularly after the spike in fuel prices, affected by Hurricane Katrina. "Hopefully this situation will improve if fuel prices continue to subside," Hoyt says. "If not, it is something the hay industry will need to address."

In spite of higher input costs, California dairies continued to be profitable in 2005. Over-base milk prices in California ranged from $12.85 to $13.80 the first ten months of last year. That, combined with higher milk production, made for another positive year in the dairy industry. "Milk production in California in 2005 would have been even better had it not been for tight supplies of higher-testing alfalfa hay," Hoyt notes. "Many dairies that normally feed 56% TDN or better alfalfa hay to milk cows were forced to feed 53-55% TDN hay. This had to have an impact on milk production."

Feed grain prices, in the meantime, moved lower through last summer and fall as the U.S. corn harvest came in just under the 2004-level record high, Hoyt states. "This, combined with a large U.S. corn carryover, made the outlook for feed grain prices favorable for dairy producers for at least the first half of 2006. It was no surprise that the amount of concentrate (grain) fed to California dairy cows through August 2005 increased to 29.6 lbs/cow, compared to 28.7 in 2004, according to the CDFA Dairy Marketing Branch."

Dairy cow numbers continued to grow in California in 2005, but at half the rate recorded a few years ago. Hoyt says 5,000 dairy cows per month were added in California in 2001. The month-to-month growth averaged 2,500 head in 2005. "It is interesting that month-to-month cow growth in Idaho is currently running ahead of California's growth, at 3,000-3,200 cows per month," Hoyt says. "The reasons for the slower growth in California are varied, but some factors included tight supplies and high prices of replacement heifers." He says that, in the first ten months of 2005, the number of heifers shipped into California from out of state dropped 14%. Milk cow prices were also very strong in 2005.

Hoyt says demand has improved for alfalfa hay from other states as a result of both reduced alfalfa hay supplies in 2005 and as dairy producers strive to increase milk production. Demand is particularly good for hay from Utah. Alfalfa hay trucked into California the first ten months of 2005 was up 21% from the same period in 2004. Shipments of alfalfa hay from Utah in the same period were up 77% due to very competitive on-farm prices. The projected alfalfa hay shipments into California from other states in 2005 could reach 870,000-880,000 tons, second only to the record 941,000-ton shipments in 1998.

Demand for alfalfa and alfalfa-grass mixtures was strong for the California horse market in 2005, too. "Per-bale costs for alfalfa and other hay at feed stores were up substantially," Hoyt says. "The cost to feed my old, retired roping horse alfalfa meal has jumped to $8.99 for a 50-lb sack. One grower in the northern mountain area said the orchardgrass or orchardgrass/alfalfa mix market was very strong last year, too."

Contact Hoyt at 916-498-5161, ext. 128.

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Iowa Auction Report
Dyersville Sales Company, Dyersville, IA, reported moderate offerings with mixed demand for dairy-quality hay in large square bales at its Jan. 4 auction. "Dairy-quality hay took a hit, and a lot of nice hay in big squares sold from $87.50 to $115/ton," reports Dale Leslein, hay auction manager. "What I'm hearing is that with the dry conditions we had, a lot of dairy hay was made. Lower-end hay is in good demand." Large round bales of good-quality hay sold for between $82.50 to $92.50/ton, while fair-quality large round bales averaged $70-80/ton, and utility brought $55-65/ton. Large round bales of good-quality prairie grass sold for $60-70/ton. Large square bales of good-quality grass hay went for $85-100/ton, while large round bales of good-quality grass hay averaged $70/ton. A total of 578 tons of hay and straw were sold at the Jan. 4 auction.

The bedding market was lower than it had been, Leslein says, and 3 x 3 bales of wheat straw sold for $34-35/bale, while good-quality small square straw bales went for $1.90/bale.

The next Dyersville auction will be held at 11 a.m., CST, on Jan. 11. Contact Leslein at 563-875-2481, or 563-588-0657, or visit www.dyersvillesales.com/content/hay_auction.html.

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Montana
There should be enough forage to meet demand if Montana has a normal winter this year, according to the Billings Gazette. The state's hay crop rebounded in 2005, as the state's producers harvested 2 million tons more than in 2004. Good spring moisture and favorable growing conditions provided a bright spot for Montana ranchers and those who raise hay for sale. The forage crop was placed at more than 6 million tons, or a 50% increase over 2004 numbers. As Montana experienced some early cold snaps this fall, ranchers were glad to have adequate feed.

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Events
I-29 Dairy Conference Covers Forages, Too
Forage growers as well as dairy producers should attend the first-annual 1-29 Dairy Conference, set for Jan. 31 in Sioux Falls, SD, says South Dakota State University extension dairy specialist Alvaro Garcia.

Mitch Davis, general manager of Davis Family Dairies, will lead off the day with a view of dairy industry development along I-29. Paul Kononoff, a University of Nebraska dairy nutritionist, will discuss impacts of forage choices on milk production. The first morning breakout sessions focus on manure management on alfalfa, led by Mike Russelle, USDA-ARS soil scientist, and harvest management for quality corn silage, led by SDSU dairy scientist Arnold Hippen.

The second breakout sessions deal with whether chloride fertilization can prevent milk fever, led by Ron Horst, physiologist with the National Animal Disease Center, and molds and mycotoxins in corn silage, led by SDSU extension plant pathologist Marty Draper. Afternoon speakers include dairy nutritionist Jim Linn of the University of Minnesota (U of M), who will talk about pricing forages based on quality, and U of M extension economist Bill Lazarus. Lazarus will discuss pricing forages based on production and harvesting. A panel discussion on custom harvesting of forages ends the day.

The conference takes place at the Best Western Ramkota Hotel and Conference Center, 3200 W. Maple, just off I-29. It begins at 10 a.m. For more information or to register, call 605-688-4116. The registration fee, which includes lunch, is $20.

Source: South Dakota State University.

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Midwest Forage Association Meeting Set For Jan. 31-Feb. 1
The Wisconsin Custom Operators, the Professional Nutrient Applicators Association of Wisconsin, and the Midwest Forage Association have scheduled their 2006 Symposium and Annual Meeting for Jan. 31-Feb. 1 at the Stoney Creek Inn in Mosinee, WI.

With more than 25 educational sessions planned in a concurrent session format, attendees will have a wide array of topics from which to choose. They include: reducing business risk, proper manure application rates, forage crop insurance, no-till forage research, new equipment updates, new tractor technology, reducing fertilizer costs, nutrient management regulation update, forage quality of grass-legume mixtures and much more.

For more information, an agenda or a registration form, call MFA at 651-484-3888, email midwestforage@comcast.net or visit midwestforage.org.

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Calendar
**Jan. 7-22 -- National Western Stock Show, National Western Complex, Denver. Learn more at www.nationalwestern.com.

**Jan. 18 -- Tri-State Hay and Pasture Conference, Garret College, McHenry, MD. Call 301-334-6960 for registration information. Learn more at agnr.umd.edu/ForageEvents.

**Jan. 18-19 -- Washington State Hay Growers Association Convention and Trade Show, Three Rivers Convention Center, Kennewick. Learn more at www.wa-hay.org.

**Jan. 19 -- Southern Maryland Hay and Pasture Conference, Isaac Walton League Outdoor Education Center, Waldorf. Call 301-475-4484 or visit agnr.umd.edu/ForageEvents.

**Jan. 19-20 -- Delmarva Hay and Pasture Conference, Delaware State Fairgrounds, Harrington. Contact Richard Taylor at rtaylor@udel.edu or 302-831-1383, or visit agnr.umd.edu/ForageEvents.

**Jan. 19-20 -- Southwest Hay Conference & Trade Show, Ruidoso Convention Center, Ruidoso, NM. Learn more at info@nmhay.com, or call 505-626-5677 or 505-622-8080.

**Jan. 21 -- Winter Grazing of Tall Fescue Pasture Walk, Wye Research and Education Center, Wye Angus Facility, Queenstown, MD. Learn more at agnr.umd.edu/ForageEvents.

**Jan. 23-25 -- Silage for Dairy Farms Conference, Radisson Penn Harris Hotel, Camp Hill, PA. Call 607-255-7654 or visit www.nraes.org.

**Jan. 24 -- Central Maryland Hay and Pasture Conference, Carroll County Agricultural Center, Westminster. Contact Doug Tregoning at dwt@umd.edu, or call 301-590-2809.

**Jan. 25-26 -- Heart of America Grazing Conference, Cave City, KY. Call 270-365-7541 or visit www.uky.edu/ag/forage.

**Feb. 3 -- Northern Indiana Grazing Conference, Shipshewana. Call 260-463-3471, ext. 3.

**Feb. 7-8 -- Nebraska Alfalfa Marketing Association's Mid-America Alfalfa Expo, Kearney. Contact Barb Kinnan at 800-743-1649 or visit www.nebraska-alfalfa.com.

**Feb. 7-9 -- Producing Cash Hay for Virginia's Equine Industry Workshops, Feb. 7-Armory in Chatham; Feb. 8-Southern Piedmont Research Station, Blackstone; Feb. 9-Tidewater Research Station, Suffolk. Registration for each will begin at 8 a.m. and the programs will end at 3:30 p.m. Early registration deadline is Jan. 27. Contact Chris Teutsch at cteutsch@vt.edu, or call 434-0292-5331, ext. 234.

**Feb. 14-16 -- World Ag Expo, Tulare, CA. Learn more at www.worldagexpo.com.

**Feb. 22-23 -- Pennsylvania Hay and Silage Conference, Holiday Inn, Grantville. Contact Lisa Crytser at 814-865-2543.

**Feb. 23 -- Kentucky Alfalfa Conference, Lexington. Contact Garry Lacefield at 270-365-7541, ext. 202.

**Feb. 25 -- Bi-State Forage Institute: Focus on Hay, The Stratford Inn, Harvard, IL. Call 847-223-8627.

**Feb. 27-28 -- Idaho Hay and Forage Association Meeting, Red Lion Canyon Springs Hotel, Twin Falls. Learn more at www.idahohay.com/.

**March 10-14 -- 2006 American Forage and Grassland Council Conference, Westin Riverwalk Hotel, San Antonio, TX. Learn more at www.afgc.org, or call Dana Tucker at 800-944-2342.

**March 14-15 -- Midwest Hay Business Conference and Expo, Ramkota Hotel, Sioux Falls, SD. Sponsored by Hay & Forage Grower.

**April 21-23 -- Midwest Horse Fair, Alliant Energy Center, Madison, WI. Learn more at www.midwesthorsefair.com.

**April 28-30 -- Minnesota Horse Expo, Minnesota State Fairgrounds, St. Paul. Learn more at www.mnhorseexp.org.

**Sept. 7-9 -- National Hay Association 111th Annual Convention, Snow King Resort, Jackson Hole, WY.

**Oct. 3-7 -- World Dairy Expo, Alliant Energy Center, Madison, WI. Learn more at www.worlddairyexpo.com.

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Letters To The Editor
Steve P. Chancellor writes:
I would like to know how buyers expect to receive the same quality of hay for 2006 when fertilizer and fuel prices are as high as they are. Many growers will skimp on applying the right amount of nutrients. Chemical prices, too, have gone way up. They should certainly expect much higher prices for hay.

Clanton, AL
Phone: 205-755-2072
Email: spchancellor@yahoo.com

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Comments from Readers
Send Questions & Comments To...

Lora Berg, Editor, eHay Weekly,

hfg@primediabusiness.com

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