Hay Prices Research Articles

The dynamics of the South African lucerne hay industry

ABSTRACT Lucerne hay is undoubtedly one of the most important forage crops used in animal nutrition globally. This article sheds light on the intricacies of the South African lucerne hay sector by offering an industry overview. Lucerne hay quality is categorised into different grades: Supreme, Prime, Grade 1, Grade 2, and Grade 3, each exhibiting its distinct characteristics and attributes based on the nutritional value of dairy cattle. The producer price of lucerne hay is driven by supply and demand in the market. These fluctuations reflect the attractiveness of new producers entering or producers exiting the industry, indicating the sensitivity of market dynamics to external factors like weather and international demand. On average, South Africa exports 160 to 240 thousand tons annually, mainly to neighbouring countries and the Middle East. Over the last several years, the Chinese markets imported a growing volume of South African-produced lucerne hay. Weather conditions are one of the leading drivers of changes in the availability, quantity, and quality of lucerne hay in South Africa, impacting the producer price of lucerne hay in the local market. This article aims to provide insight into the dynamics of the South African lucerne hay industry. Additional research is required to understand the interactions of weather conditions (temperature variations, rainfall and occurrence of rainfall) on lucerne hay production and quality. Understanding international demand for South African lucerne hay will provide insight into the competitiveness of South African lucerne hay in the international market.

ТРАВОСМЕСИ ДЛЯ СОЗДАНИЯ ВЫСОКОКАЧЕСТВЕННЫХ ИНТЕНСИВНЫХ СЕНОКОСОВ В ПОЛУПУСТЫННОЙ ЗОНЕ РОССИИ

The purpose of the study is to improve the species composition of grass mixtures under irrigated conditions to increase their productivity, longevity and provide livestock with high-quality feed. The experiments were performed in 2019-2022 on old plowed lands located in the right-bank steppe of the north of Astrakhan region under irrigation. Irrigation method: sprinkling, 10 vegetation irrigations per season. The soil is light chestnut, medium loamy with a humus content of 0.90...1.00%. mobile phosphorus and potassium (according to Machigin) – 69 and 361.5 mg/kg, respectively. We studied 6 variants of grass mixtures: control (creeping wheatgrass, angustifolia bluegrass, awnless brome, coastal sedge, swamp grass, California cocklebur); grass mixture 1 – 25:25:25:25% (blue hybrid alfalfa, meadow clover, meadow timothy, meadow fescue; grass mixture 2 – 30:40:30% (meadow clover, multi-cut ryegrass, meadow fescue; grass mixture 3 – 50:50% ; (meadow clover and reed grass); grass mixture 4 – 25:25:25:25% (eastern goat’s rue, meadow clover, multi-cut ryegrass, meadow fescue; grass mixture 5 – 25:25:25:25% (meadow clover, meadow timothy) , multi-cut ryegrass, common beckmania); grass mixture 6 – 50:25:25% (meadow clover, festulolium, intermediate wheatgrass. The most productive were grass mixtures No. 1 and No. 2 – 147.6 and 156.3 t/ha of green mass, which higher than the control by 134.3 and 143.0 t/ha, respectively. All studied options were distinguished by high nutritional value - the content of feed units per 1 kg of dry biomass varied from 0.75 kg per 1 kg of feed for grass mixture No. 2 to 0.85. kg per 1 kg of feed for grass mixture No. 5. When feeding all grass mixtures with hay, the animals had a higher average daily weight gain (1.2...1.7 higher) in terms of nutritional value, compared to feeding with hay from natural grass. The high productivity and price of hay of legume-grass grass mixtures determine the high profitability (177%) of its production, which is 3.3 times higher than natural haymaking.

Managing Market Volatility in 2023

Current prices for agricultural commodities are strong. The average auction market price in early May for 500–600-pound steer calves in Nebraska was $264 per cwt. Heifer prices were $30 lower, at $234 per cwt. Elevator prices for corn in western Nebraska are in the high $6-per-bushel range. Wheat prices at the elevator are around $8 per bushel. Hay prices are $200 to $300 per ton if you can find it. Severe drought and world market volatilities over the last couple of years have pushed all of these markets higher. Growers and sellers of these commodities are anxious for harvest to arrive. They hope these prices hold and yields are good so they can capture a decent profit margin for their work. Farmers and ranchers live with market volatility year in and year out. High prices bring both optimism and anxiety as producers know markets can turn around dramatically over short periods of time. They also know production losses sting a little more when they represent lost opportunities to market farm output into a high market. In this article, we examine market volatility for each of the above farm outputs. We take a historical look at variability in price outcomes, and add perspective on tools available to manage this risk at this point in the season.

Is There an Economic Advantage to Planting Diverse Summer Annual Forage Mixtures?

This study examined economic implications of planting summer annual mixtures of grasses, legumes, and forbs at varying nitrogen rates. No differences in yield occurred between the three mixtures, indicating that mixtures with lowest seed cost will be most economical. Applying N resulted in yield increases of 12.26 lb DM per lb N applied. Although yield responses to N were positive, sensitivity analyses showed that applying N resulted in positive net returns only when hay prices were high and N prices were low. When utilization rates are accounted for, enterprise budgets determined grazing to be 18% cheaper to implement than haying.

Is Harvesting Cover Crops for Hay Profitable When Planting Corn and Soybean in Tennessee?

Winter cover crops can improve the soil’s moisture-holding capacity, reduce soil water evaporation, and mitigate water-induced soil erosion; however, economic studies show mixed results on cover crop impacts on profits. One way to potentially increase the profits from planting cover crops is to harvest the cover crop for hay. The objective of this study was to determine the profitability of planting and harvesting cover crops when planting corn (Zea mays) or soybean (Glycine max (L.) Merr.) as a cash crop. We determined the difference in net returns among 15 cover crop species when planted before corn and soybeans. We then calculated the breakeven hay price if the cover crop was harvested. Data were collected from an experiment in Tennessee, from 2017 to 2019, at two locations. There was no difference in net returns across cover crop treatments for both corn and soybeans, thus indicating that planting a cover crop does not reduce profits. The breakeven prices for harvesting cover crops suggest that this system would not likely be profitable for corn but might be profitable if planting soybeans, depending on labor availability and local demand for hay.

Profitability of dual‐purpose rye cover crop as influenced by harvesting date

AbstractHarvesting annual winter cereal rye (Secale cereale L.) (WCR) as an emergency forage could offset cover crop establishment costs, facilitate WCR adoption, and still provide multiple ecosystem benefits. A five site‐year trial was conducted in Colorado (CO) and Illinois (IL) to evaluate the effect of harvest date on WCR forage yield, quality, and its economic performance. From March to April, WCR dry matter (DM) yield increased exponentially in CO and linearly in IL. The DM yield at Julian day (DOY) 112–116 in CO was 6.9, 5.0, and 5.2 Mg ha–1 in 2018, 2019, and 2020, respectively, compared with 4.7 and 2.7 Mg ha–1 in IL in 2019 and 2020, respectively. Delayed harvesting increased acid detergent fiber and neutral detergent fiber concentrations and decreased crude, total digestible nutrients, and relative feed quality. Yield–quality trade‐off showed that forage yield increased rapidly but forage quality declined after DOY 105–108. Economic analysis, including cost of nutrient removal and 10% cash crop (corn [Zea mays L.]) yield penalty following WCR production revealed harvesting WCR biomass as forage was economically feasible in four out of five site‐years at hay price over $132 Mg–1. Eliminating corn yield penalty indicated profitability in four site‐years at hay price of ≥$110 Mg–1 and removing nutrient removal costs made all site‐years profitable at hay price of ≥$110 Mg–1. It was concluded that harvesting WCR biomass can be a profitable and effective strategy for sustainable intensification that can offer environmental stewardship and economic benefit.

Assessing the Effects of Agronomic Management Practices on Soybean (Glycine max L.) Post-Grain Harvest Residue Quality in the Lower Mississippi Delta

Livestock producers often resort to either baling or grazing of crop residues due to high hay prices and reduced supply of other forages and silage in the markets. Soil-water-crop management practices can affect residue nutrient qualities for its use as cattle feedstock. A two-year study (2018–2019) was conducted to investigate the effects of irrigation (AI, all row-irrigation; ARI, alternate row irrigation; and RF, rainfed) and planting pattern, PP (SR, single row; and TR, twin-row) on soybean (maturity group IV cv. 31RY45 Dyna-Gro) post-grain harvest residue quality such as crude protein (CP), acid detergent fiber (ADF), neutral detergent fiber (NDF), acid detergent lignin (ADL), net energy for maintenance (NEM), net energy for gain (NEG), net energy for lactation (NEL), total digestible nutrients (TDN), and relative feed value (RFV). Irrigation has a significant effect on CP, ADF, NDF, and TDN while PP affected only NDF. All the above parameters were significantly affected except NEM by the contrasting climate conditions, particularly during July through August coinciding with early crop reproductive stages and maturity. The RFV values ranged from 70.4 to 81.6 and this lower range was attributable to nutrient translocation to seeds and higher lignification during plant senescence towards the grain filling stage of the crop as good quality hay records over 120 RFV. These results indicate that both irrigation and weather during soybean seed development can alter post-grain harvest residue quality parameters, thereby playing critical roles in its RFV.

Re-evaluating the Economic Injury Level for Alfalfa Weevil (Coleoptera: Curculionidae) Control in Low Desert Irrigated Alfalfa.

Alfalfa (Medicago sativa L.) dominates cropping systems in the Western United States and is first in terms of acreage planted in Arizona. The alfalfa weevil, Hypera postica (Gylenhall) and/or Hypera brunneipennis (Boheman), respectively, is the most destructive pest in terms of yield loss in low desert-grown alfalfa hay. The current economic threshold of 15–20 larvae per sweep, established in California in 1975, is currently not suitable or adopted by growers in the western U.S. low desert. Here, we conducted 4 yr of field trials to re-evaluate this economic threshold. Supporting observations of agricultural growers and professionals in the region, our results indicate that the economic threshold established in 1975 is too high. Specifically, one to three large larvae often cause a significant decrease in yield justifying weevil control based on current hay prices and costs of insecticide application. These results are discussed in the context of sustainable alfalfa production in the western U.S. low desert.

Performance and income over feed costs when feeding alfalfa or grass hays and corn or wheat grains to high-producing dairy cows

The objective of this study was to evaluate the production performance, nutrient digestibility, and income over feed cost (IOFC) of high-producing dairy cows consuming diets containing alfalfa or grass hays with either corn or wheat grain. Twenty-four Holstein cows were randomly assigned to 1 of 4 diets in a replicated 4 × 4 Latin square design with a 2 × 2 factorial arrangement of treatments (hay and grain types) and 21-d periods. Diets were formulated using a least-cost approach. To determine revenues from milk produced, the amount of ECM (kg·d −1 ) was multiplied by $0.303·kg −1 (i.e., class III milk price; US Federal Milk Marketing Order 5). The cost of the ration provided by the formulation software ($·cow −1 ·d −1 ) was divided by the predicted DMI (kg·cow −1 ·d −1 ) to obtain the cost of feed ($·kg −1 ), which was then multiplied by DMI (kg·cow −1 ·d −1 ) to provide the actual daily feed cost ($·cow −1 ·d −1 ). Cows consuming diets containing alfalfa hay consumed more DM than cows consuming diets with grass hay (27.1 vs. 24.4 kg·d −1 ). Cows consuming diets containing alfalfa hay produced more milk than cows consuming diets containing grass hay (47.5 vs. 44.7 kg·d −1 ). Milk from cows consuming diets containing grass hay had greater fat concentrations than milk from cows consuming diets containing alfalfa hay (4.22 vs. 3.89%). Using hay prices of $418 and $154∙t −1 , respectively, for alfalfa and grass hays, diets containing grass hay resulted in greater IOFC than diets containing alfalfa hay ($8.39·d −1 vs. $7.68·d −1 , respectively). Results of this study showed that IOFC can be supported when feeding grass hay using a least-cost ration formulation approach.

Historical Trends in New Mexico Forage Crop Production in Relation to Climate, Energy, and Rangelands

This study was conducted within the context of providing an improved understanding of New Mexico’s food, energy, water systems (FEWS) and their behavior under variable climate and socioeconomic conditions. The goal of this paper was to characterize the relationships between production and prices of some forage crops (hay, grain sorghum, and corn) that can be used as feed supplements for beef cattle production and the potential impacts from a changing climate (precipitation, temperature) and energy inputs (crude oil production and prices). The analysis was based on 60 years of data (1958–2017) using generalized autoregressive conditional heteroscedasticity models. Hay production showed a declining trend since 2000 and in 2017, it dropped by ~33% compared to that of 2000. Crude oil production (R2 = 0.83) and beef cattle population (R2 = 0.85) were negatively correlated with hay production. A moderate declining trend in mean annual hay prices was also observed. Mean annual range conditions (R2 = 0.60) was negatively correlated with mean annual hay prices, whereas mean annual crude oil prices (R2 = 0.48) showed a positive relationship. Grain sorghum production showed a consistent declining trend since 1971 and in 2017, it dropped by ~91% compared to that of 1971. Mean annual temperature (R2 = 0.58) was negatively correlated with grain sorghum production, while beef cattle population (R2 = 0.61) and range conditions (R2 = 0.51) showed positive linear relationships. Mean annual grain sorghum prices decreased since the peak of 1974 and in 2017, they dropped by ~77% compared to those of 1974. Crude oil prices (R2 = 0.72) and beef cattle population (R2 = 0.73) were positively correlated with mean annual grain sorghum prices. Corn production in 2017 dropped by ~61% compared to the peak that occurred in 1999. Crude oil production (R2 = 0.85) and beef cattle population (R2 = 0.86) were negatively correlated with corn production. Mean annual corn prices showed a declining trend since 1974 and in 2017, they dropped by ~75% compared to those of 1974. Mean annual corn prices were positively correlated with mean annual precipitation (R2 = 0.83) and negatively correlated with crude oil production (R2 = 0.84). These finding can particularly help in developing a more holistic model that integrates FEWS components to explain their response to internal (i.e., management practices) and external (i.e., environmental) stressors. Such holistic modeling can further inform the development and adoption of more sustainable production and resource use practices.

Effects of drought on hay and feed grain prices

Droughts represent a severe and increasing risk for the livestock sector as they can reduce yields of hay and feed grain. Droughts are predicted to increase in frequency and magnitude under climate change. Here we estimate the so far unexplored effect of drought shocks on feed prices. We use an empirical example from Germany and focus on the prices of hay as well as feed wheat and barley. Our results show that regional and national droughts substantially increase hay prices by up to 15%, starting with a delay of about 3 months and lasting for about a year. In contrast, feed grain prices in our sample are not affected by regional or national droughts. These price responses can be linked to market integration, as the hay market is usually regionally organized while feed grains are traded transnationally. It is important to include this knowledge into farm management and policy actions, especially considering climate change.

An Evaluation of Historical Trends in New Mexico Beef Cattle Production in Relation to Climate and Energy

In support of Food-Energy-Water Systems (FEWS) analysis to enhance its sustainability for New Mexico (NM), this study evaluated observed trends in beef cattle population in response to environmental and economic changes. The specific goal was to provide an improved understanding of the behavior of NM’s beef cattle production systems relative to precipitation, temperature, rangeland conditions, production of hay and crude oil, and prices of hay and crude oil. Historical data of all variables were available for the 1973–2017 period. The analysis was conducted using generalized autoregressive conditional heteroscedasticity models. The results indicated declining trends in beef cattle population and prices. The most important predictors of beef cattle population variation were hay production, mean annual hay prices, and mean annual temperature, whereas mean annual temperature, cattle feed sold, and crude oil production were the most important predictors for calf population that weigh under 500 lb. Prices of beef cattle showed a strong positive relationship with crude oil production, mean annual hay prices, rangeland conditions, and mean annual precipitation. However, mean annual temperature had a negative relationship with mean annual beef prices. Variation in mean annual calf prices was explained by hay production, mean annual temperature, and crude oil production. This analysis suggested that NM’s beef cattle production systems were affected mainly and directly by mean annual temperature and crude oil production, and to a lesser extent by other factors studied in this research.

Nitrogen application effects on forage sorghum production and nitrate concentration

Forage sorghum (Sorghum bicolor (L.) Moench) is an important annual forage crop but prone to high nitrate concentration which can cause toxicity when fed to cattle (Bos taurus and Bos indicus). Two field experiments were conducted over six site-years across Kansas to determine the optimum nitrogen (N) rate for no-till forage sorghum dry matter (DM) yield and investigate the effect of N fertilization on sorghum forage nitrate content. A quadratic model described the relationship between sorghum DM and N rate across the combined site-years. Maximum DM yield of 6530 kg ha−1 was produced with N application rate of 100 kg N ha−1. The economic optimum N rate ranged from 55 to 70 kg N ha−1 depending on sorghum hay price and N fertilizer costs. Crude protein concentration increased with N fertilizer application but N rates beyond 70 kg N ha−1 resulted in forage nitrate concentrations greater than safe limit of 3000 mg kg−1. Nitrogen uptake increased with N fertilizer application but nitrogen use efficiency and N recovery decreased with increasing N fertilizer rates. In conclusion, forage sorghum required 55–70 kg N ha−1 to produce an economic optimum DM yields with safe nitrate concentration.

Productivity, economic performance, and soil quality of conventional, mixed, and organic dryland farming systems in eastern Washington State

The global trends of shortening crop rotations, simplifying cropping systems, and segregating livestock from cropping enterprises have generated high yields while creating high environmental costs. Diversification, including integrated crop/livestock systems and the use of cover, forage, and perennial crops, can be used to improve soil health, reduce financial risk, increase yields, and reduce many negative environmental externalities. With such diversification in mind, we conducted a 5-year study examining four contrasting farming systems in dryland eastern Washington State in terms of their impacts on total productivity, economic performance, and soil quality. The four systems were a conventional (CONV) winter wheat/spring wheat/spring pea rotation, typical for the area; a mixed crop-livestock (MIX) winter wheat/spring wheat/grazed winter pea forage rotation; an organic mixed crop-livestock (ORGcrop) rotation of 3 yr perennial alfalfa and grass/grazed pea forage/winter wheat; and an organic hay (ORGhay) continuous perennial alfalfa and grass system. Soft white winter wheat (SWWW) yields were higher following grazed pea forage in MIX (6.2 Mg ha−1) than following harvested pea crop in CONV (5.9 Mg ha−1) despite lower N fertilizer rates in MIX. Following 3 yr of alfalfa and grass hay and no N fertilizer, SWWW yields in ORGcrop (6.2 Mg ha−1) were similar to CONV and MIX yields but averaged 15.5% lower protein concentration. Over the 5-yr rotation, average net returns were ORGhay ($616 yr−1) > ORGcrop (216 yr−1) > MIX (−1 yr−1) = CONV (−13 yr−1), in part due to high hay prices and average grain prices during this period compared to long-term averages. Over the course of the study, total soil profile SOC showed significant negative trends in CONV (−3.1 Mg C ha−1 yr−1) and MIX (−4.1 Mg C ha−1 yr−1) but not in ORGcrop and ORGhay. In surface (0–15 cm) soil, microbial biomass carbon and nitrogen and beta-glucosidase activity were greater in ORGcrop and ORGhay than in CONV and MIX. The landscape position of this study site is of relatively poorer soil quality and results may differ across the heterogeneity of a whole farm field. Overall, ORGhay, ORGcrop, MIX, and CONV in this order produced a gradation of forage production relative to cereal production from greatest to least, and also a gradation of economic and soil sustainability metrics from greatest to least. This study found that integrating perennial crops, such as alfalfa and forage grasses, into organic farming systems can build soil quality, be profitable, and supply nitrogen to succeeding grain crops.

Applied analysis of milk market in Bahrain

Este trabalho analisa o mercado e o consumo de leite no Reino do Bahrein com foco nas leis da oferta e da procura. Os resultados mostraram que a demanda por leite em Bahrain é inelástica ao preço e o leite importado é um complemento ao produzido internamente. Além disso, a oferta por leite doméstico em Bahrein é inelástica ao preço e o aumento do leite importado gera aumento na produção de leite doméstico. Além disso, com o aumento da renda interna ocorre o aumento da demanda por leite doméstico e importado. No entanto, isto não afeta a oferta por leite doméstico e os preços. Por outro lado, o aumento no preço de feno e alfafa diminui a produção de leite doméstico e aumenta a importação.

Factors Affecting Hay Prices at Auction: A Hedonic Analysis

Core Ideas Marketing hay in small square bales was found to add significant economic value to the forage. TDN and RFV were both significant drivers of economic hay value. Quality measures had more price impact on small square bales than large round bales. An inverse relationship was found between square bale weight and sale price per metric ton. Despite hay’s significance as a driver of the agricultural economy and its role as a major input into the livestock sector, it has generally received less attention in marketing literature than many other commodities. This work examined sale results from a hay auction in Central Kentucky where information on hay weights and quality were made available to prospective buyers prior to sale. Utilizing this data, a hedonic analysis was employed to examine specific factors that impacted sale prices for individual lots of hay. This work built on existing literature by evaluating the price impact of large round bales compared to small square bales, hay quality measures of Total Digestible Nutrients (TDN) and Relative Feed Value (RFV), lot size, and bale weight. Hay sold in small square bales was found to net a significantly higher price than hay sold as large round bales, even when holding other factors constant. This work also confirmed the importance of hay quality measures as a price driver, even in a market environment without significant dairy influence. Finally, quantitative evidence was found to support a negative relationship between price and small square bale weight, such that price and revenue would likely decrease as small square bales become larger. This work has implications for producers and sellers of hay as they consider marketing strategies and hay buyers as they attempt to understand what drives prices of hay in their region.

Nitrogen Fertilizer Application Effects on Switchgrass Herbage Mass, Nutritive Value and Nutrient Removal

Switchgrass (Panicum virgatum L.) can provide summer forage when forage production from cool‐season grasses is limited. This experiment was conducted over two growing seasons (2014 and 2015) to determine nitrogen (N) fertilizer application rate and time of harvest effect on switchgrass herbage mass, nutritive value, and nutrient removal. Treatments consisted of a split‐plot arrangement of five N rates (0, 45, 80, 135, and 180 kg ha−1) applied annually as main plots and harvest time (harvested in July for forage or October for biomass) as subplots in a randomized complete block design with three replications. Nitrogen rate × time of harvest interaction had no effect on herbage mass or nutritive value. Increasing N application rates increased herbage mass, crude protein, in vitro dry matter digestibility, and neutral detergent fiber concentrations, but not acid detergent fiber. A quadratic function described the relationship between herbage mass and N rate, with maximum yield occurring at 151 kg N ha−1. The economic optimum N rates ranged from 90 to 120 kg N ha−1 and depend on switchgrass hay price and N fertilizer costs. Generally, herbage mass was greater for switchgrass harvested for biomass, but nutritive value and nutrient removal were greater when switchgrass was harvested for forage. Switchgrass herbage mass and nutrient removal were greater in 2014 than in 2015. Our findings showed that N fertilizer rates for switchgrass under rain‐fed conditions need to be adjusted on the basis of expected herbage mass produced, hay value, and prior year N removal rates.

Result-based agri-environment measures: Market-based instruments, incentives or rewards? The case of Baden-Württemberg

Result-based agri-environment measures are increasingly seen as an interesting way to improve the conditionality and efficiency of the use of Common Agricultural Policy (CAP) funding for environmental land management. They differ from classical action-based measures in that they remunerate farmers to achieve a desired outcome, and not for complying with a set of rules. We have analysed MEKA-B4, the result-based agrienvironment measure in place in Baden-Württemberg (Germany) between 2000 and 2014, which aimed to preserve species-rich grassland. In order to do so, we carried out semi-structured face-to-face interviews with participating and non-participating farmers and key institutional actors. We argue that MEKA-B4 could be considered a Payment for Ecosystem Services (PES), but only if a broad definition is adopted, as the payment appeared to cover the opportunity costs of only some categories of farmers (e.g., part-time farmers, less productive fields, hay producers), but it was too low to cover those of intensive cattle raisers and biogas producers, partly due to the changing market conditions (e.g., fluctuating and decreasing price of hay; incentives to produce biogas). In fact, in general most farmers were motivated to join the scheme by a combination of extrinsic motivations (i.e., the monetary incentive) and intrinsic motivations (i.e., ethical reasons). Increasing the payment, as has been done in the new version of the scheme (FAKT-B3), may help to ensure a wider enrolment in the measure in the long term. However, the interaction with biogas subsidies and other measures of the FAKT programme may hamper the farmers’ enrolment. This shows the need to improve the integration and coherence of environmental policies that have different objectives.

Price and quality of livestock feeds in suburban markets of West Africa’s Sahel: Case study from Bamako, Mali

In West African Sahel cities, livestock husbandry such as smallholder dairy production and livestock (cattle, sheep and goat) fattening has become popular among livestock owners to meet food needs for the household, and for income generation. The increasing importance of urban and suburban agriculture, particularly livestock husbandry in the region, has led to a rapid increase in livestock populations in most of the cities. As a result of this increase and the associated growth in the demand for feeds, feed markets have sprung up in many cities and towns of West Africa’s Sahel. A survey of livestock feed markets was conducted in five markets in Bamako, Mali. Prices of livestock feeds were monitored monthly from January to December 2010. In addition, feed samples were collected from the markets for laboratory analysis to determine their nutritional quality. Results showed that the prices of cowpea hay and groundnut haulm were consistently higher than those of other feeds throughout the year. The price of cowpea hay ranged from 367 FCFA/kg dry matter (DM) (1 USD ≈ 500 FCFA) in October, i.e. immediately after harvest, to 667 FCFA/kg DM in August, i.e. in the wet season. Results also showed that there was no relationship between price and quality for all feed types. However, prices and quality of feeds differed significantly across seasons suggesting that the season was a major determinant for the price of livestock feeds in suburban areas of West Africa’s Sahel.

Historical Forage Productivity and Cost of Capital for Cow-Calf Production in California

Exposure of livestock grazing to forage productivity variation and to market fluctuations affects the risk of investment and returns from cow-calf operations, but little work has been done to empirically compare these returns to the returns that would be demanded by financial markets from assets with similar risk and return characteristics. This study uses historical forage production data from three rangeland locations in California, and cattle and hay prices, to simulate financial statements for three hypothetical cow-calf producers in the period 1988–2007. Return on investment from year to year incorporates the variability and risk associated with dependence on natural forage production. Performance is then compared to the actual performance of a diversified portfolio of assets using the Capital Asset Pricing Model, from which the theoretical cost of capital for these hypothetical grazing enterprises is derived. Much like other agricultural enterprises, cow-calf production in California has low market risk and a low theoretical cost of capital. This theoretical cost of capital is still greater than the historical return from livestock production (excluding land appreciation) in the western United States, adding further backing to the point often made in the literature that ranchers who engage in cow-calf production are receiving benefits beyond the commercial returns from livestock production alone.