The ratio of U.S. all hay prices relative to U.S. corn prices is projected to drop to a 96 percent average during the November1995 through April 1996 period. This is down from last year's ratio of 110, the peak value. Hay Production Projected Released on September 5, 1995. The USDA in its August crop report projected total hay production to reach 157.374 million tons, the largest on record and almost twice its levels 75 years ago. Released on August 7, 1995.
Hay demand is highly related to the inventory of cattle, sheep and horses.
The USDA published on July 21 the mid-year inventory of cattle by class. These July 1 inventories implies that hay demand will remain strong for a number of years and will grow over the next several years. Hay Prices Will be at Record Levels Released on June 28, 1995. Hay prices will be be at record levels this year, something only cotton can boost about. So let's take a look at the hay situation and see what is behind these strong prices and what it means to your farming operation.