What About Hay?

We seem to write mostly about the main three grain crops in the US (corn, beans and wheat) since they comprise a large portion of US Ag revenues.

However, there are several other very important crops that are harvested every year.  One of those crops is hay.

I have reviewed the data from the USDA site and find the following:

• In 2011, total hay dollar volume was about $17.7 billion.  There were only three states over $1 billion.  California at $1.7, Idaho at $1.07 and South Dakota at exactly $1.0 billion in gross hay sales.
• Every state but Hawaii reported hay sales with Rhode Island being the smallest at $3.5 million.  Even Alaska had over $6 million in hay sales.
• The top 10 states are all concentrated west of the Mississippi river.
• Peak hay sales occurred in 2008 with almost $19 billion of hay revenues.  During the last 10 years, sales have ranged from a low of about $12 billion up to the $19 billion.  2008 was #1, 2011 was #2 and 2007 was # 3.

Hay is very important to the livestock and dairy industry and much of it is exported to  other countries.  This trend will continue.

Paul Neiffer CPA