Monthly Archives: June 2008

How About a Hay Subsidy?

To help stabilize feed costs, Japan’s Ministry of Agriculture, Forestry, and Fisheries (MAFF) announced a $415 million subsidy. Compound feed costs have seen significant increases due the the doubling cost of corn. According to the USDA Gain Report, the money will help absorb feed cost surges and will last until March 2009. Nearly 75% of imported corn to Japan is used for miscellaneous livestock feed, and almost all corn is imported from the United States. The subsidy represents more than 16.5% of the total cost of corn used for feed according to USDA.

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Hay Tarp for Export Hay

Protecting export hay is of major importance at ACX Pacific Northwest. While some hay is stored in barns, other hay is stored on a stack pad while it awaits shipment to overseas hay importers. Keeping hay covered is important for protecting hay and forage from wind, rain, and sun. ACX Pacific Northwest uses the strongest hay covering tarps from Tarp It–an Ellensburg based company which was recently featured in the Daily Record. The original story is here. Our overseas roughage import customers can rest-assured the hay they recieve from ACX Pacific Northwest is protected by the best hay protection company in the business.

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Hay Farming Cost Control

At least one farmer doesn’t have to worry expensive diesel fuel. While California farmers have faced diesel fuel thieves, a Tennessee farmer decided to rake his hay the old-fashioned way. He traded his tractor for a pair of mules. Here’s a video, but you’ll have to watch a short advertisement: Farmer Uses Mules Video

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Milk Price in Japan

US dairies on the west coast have one BIG advantage over their Pacific Rim (namely, Japan) counterparts: Strong milk prices. The graph below indicates a 2007 surge in milk prices that far exceeded hay prices. In fact, notice how US milk prices nearly doubled in one year from the Summer of 2006 to 2007.  Strong milk prices allowed US dairies to remain competitive and produce abundant dairy products, which probably explains why milk prices are now leveling off.  Pacific Rim dairymen need a similar surge in milk prices so they may continue to operate without losing money.

How the US dairies keep up

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