Rancher’s Expenses Keep Rising

Many livestock producers in Fayette County were forced to start feeding hay earlier than usual this year due to the drought. Some cattle raisers started feeding hay back in July as the pastures turned dry.

They’re going to need even more hay to get through the winter. Some of cattle producers are having to buy hay. Five foot by five foot round bales of good quality hay have been selling for as much as $125-150 per bale. Last year, by comparison, they could be had for $100 a bale or less.

“It was going to be more expensive this year regardless because of fertilizer prices, but scarcity hasn’t helped matters either,” said Fayette County AgriLife Extension Agent Scott Willey.

“Some areas along the coast have gotten some rain, so they’ve been able to make a second cutting,” Willey added. “A handful of local producers are getting hay from Sealy, Eagle Lake, that direction.”

Willey said some producers even had to cross state lines to find enough hay for their operations.

“There are a lot of people who didn’t have enough hay last year, and they’re cutting way down on their herds,” said Ronnie Beck, owner of Flatonia Livestock Commission. “And people who have hay are reluctant to sell it.”

Beck said he’s seen poorquality corn stubble hay selling for $60-90 a bale, compared to a few months ago when it was selling for $40.

“That hay is just a filler,” Beck said. “Then you have to go to the feed store to buy some protein.”

“There’s a lot of cattle being sold that shouldn’t be sold right now,” Beck added. “I’m seeing cows with calves anywhere from babies up to 200 lbs. coming through the auction. We shouldn’t see them in the auction until January to March. But people don’t have hay to feed them.”

Beck said he fears that the sell-off will result in fewer cattle going to market next year.

Beck said local producers with high-quality cattle have a better chance of getting through the feed shortage even if they have to purchase hay. The market for quality cattle remains fair, he said. Producers with poorer quality cattle will have a harder time making ends meet in the current climate, he said.

“Cattle prices are pretty good at the present time, but the buyers are more selective on quality,” Beck said.

Beck encourages local cattle raisers to improve their herds by purchasing a high-quality bull.

“Right now, cattle are selling fairly well, but as a portion of what everything costs, they’re still not bringing what they need for the farmer and rancher to cover fuel, feed, fertilizer and other expenses,” Beck said. “Cattle prices need to go up and we’ll be in better shape.”

Willey said he recently attended a presentation by livestock economist Dr. David Anderson of Texas A&M University.

“He’s expecting cattle prices to slowly work their way up next year,” Willey said. But the interesting thing is that we’re placing a lot of heifers feedlots. Our cattle inventory is low. We’re culling a lot of cows. If we can get out of this dry spell in the spring, then maybe that will start increasing demand and prices.

“It’s kind of like 2015,” Wiley added. “We came out of a bad drought, inventory was low, and it took a while for the cattle to come through the pipeline.

Levi Garlick of the Farm Service Agency (FSA) Office in La Grange reported that the United States Department of Agriculture has activated an emergency program that could help some local producers with the hay shortage. The Emergency Assistance for Livestock, Honey Bees, and Farm-Raised Fish Program (ELAP) covers above normal expenses for hauling water or feed to livestock or hauling livestock to forage or grazing acres. Read more about the ELAP program on Page C6 today.