SJV and Nevada Alfalfa Water Update

In the San Joaquin Valley there is to be a water shortage, and it appears that many farmers are receiving bad news when it comes to the water situation. According to a June 18, 2013 article in the Fresno Bee, farmers were recently told to “Expect a zero percent water allocation next February if winter doesn’t start out stormy.”

According to the article, Tom Birmingham Westlands General manager said “”When we look at these dry conditions and low storage in reservoirs later this year, it’s difficult to see how the initial allocation could be anything but zero, unless we have a very big December and January,”

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2013 Water Update for Hay

03082013 - Spokane River (800x600)Taylor Gombos
Administrative Marketing Associate
ACX Pacific Northwest, Inc.

The 2013 water outlook for hay growing in the western United States varies from region to region. Some areas have positive outlooks while other areas face full-on water shortages and drought.

In general, water shortages in any farming region can drive up the price of all crops including forage products which require large volumes of water to produce.

Water shortages drive up the cost of water. Expensive water means fewer irrigable acres. Ultimately, water availability determines the amount and variety of hay (e.g. alfalfa, timothy, Sudangrass) to be grown in any given region.

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Alfalfa Prices 2011

2011 Alfalfa in the Field

Big Bale Alfalfa © 2011 - ACX

Alfalfa prices in the USA are based purely on market conditions driven primarily by domestic dairies. So far in 2011, alfalfa prices have been somewhat volatile. This is the result of lack of carry-over hay supplies from 2010 and increasing demand for alfalfa in all market sectors. Furthermore, prices of alfalfa have not yet settled because of the long, cool spring and unseasonal rains.

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