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.

Alfalfa is probably one of the last agricultural “commodities” where prices are not driven by speculation. The hay business is very honest in this respect. We’ve actually been asked if there was an alfalfa futures market and it is probably a good thing there is not. Notwithstanding, other commodities, especially those used in the dairy ration, do affect the price of alfalfa.

Stability in the hay market results when growers and buyers work together to bring about market stability. ACX believes and practices the long-term relationship business form. Some ACX growers have supplied us for well over 20 years. We still operate in the spot market, but the forward thinking way is usually best for all parties. Some years are good for the grower, some years are good for the buyer; in the end, because we work together, nobody loses.

Our motto is “You Grow ~ We Buy!” We’re interested in supporting hay growers in their profession for the long haul. Contact ACX today for more information. Together, we can bring about stable alfalfa prices as we feed the world with animal feed.