Brad Fassett was selling hay for $4.50 a bale when he started ranching full-time in 1998. Today, he sells a 65-pound bale for $13.50.
While it might look like his profits are soaring, Fassett and many other La Plata County hay growers and cattle ranchers are struggling to remain profitable as they endure unfavorable weather conditions that have affected sales prices for hay and cattle.
Fassett’s profit margin has remained steady through the years – between $2 and $2.50 per bale – as his own operating costs have increased, reducing his income.
Fassett said about 80 percent of his crops end up in feed stores. The grower said the hay is used to feed a wide variety of animals, including cattle, llamas, alpacas, sheep, goat, rhinos, zebras and even kangaroos.
Tom Campbell, who manages Basin Coop in Durango, said the local hay market has remained consistent despite fluctuations in prices over the years.
Southwest Colorado is a major supplier of hay to local ranchers and distributors in other states such as New Mexico and Arizona, said Campbell, who has been in the agricultural business for 47 years, 23 of them in Durango.
It is important for the feed store to buy from local farmers in an effort to support the local economy, he said.
The average market price for a 65-pound bale of hay has remained at about $10.50 for the last three to four years, Campbell said.
Campbell said the price is fair because ranchers put a lot of work and money in their crops. With unfavorable weather conditions shortages are likely.
Basin Coop prefers to buy locally, but will not leave ranchers without feed for their animals.
Fassett generally grows about 250 acres of hay to sell. Last year, however, he was able to roll 40,000 bales versus 17,000 bales this year. The difference for him was irrigation, which has been restricted for ranchers because of the West’s continuing drought, he said.
Because of Colorado’s dry climate, Fassett and many farmers need to irrigate their crops because a lack of water and poor soil conditions can reduce their crop yields.
Hay production begins with the summer planting, but Colorado growers look forward to the winter months because melted snow helps to water their crops. Snow also helps to insulate the ground and keeps the soil from freezing, he said.
The drought is also largely to blame for the jump in the price of the hay that Fassett does sell, he said.
Three years ago, Fassett said he was selling hay for $7.50 per bale. And while he acknowledges that the $13.50 per bale price he is now selling at is high, he blames that on the drought and his own increasing growing costs.
Too much water can hurt crops, too, though, Fassett said.
Fassett said many of his fellow farmers have experienced losses this year after heavy rains damaged their hay crops.
Davin Montoya, who runs a range-cattle operation, explained that water-damaged hay is sold at discounted prices of up to 50 or 75 percent off.
For many ranchers, that would mean selling their hay at a loss.
But for ranchers such as Montoya, who grow hay for their own use, water-damaged hay is less of a concern, he said.
Premium hay, he said, is primarily used to feed dairy cattle because their diets affect the quality of the milk produced. Cheaper hay can be used to feed range, or beef, cattle because it doesn’t hinder the quality of the meat. Cattle diets consist of varying food sources to ensure the cow has a well-balanced diet, he said.
“The better the condition, the better the feed value.” Montoya said.
Additionally, the number of hay cuttings depends on the type of hay being harvested. Alfalfa hay can yield anywhere from three to four cuttings a harvest, while grass hay, primarily used to feed range cattle, will tend to yield fewer cuttings because of its slow growing nature, Montoya said.
Rain wasn’t a problem for Fassett, who said the recent storms replenished his lands and did him more good than bad, he said.
And Fassett admits “I’ve made a comfortable living” and says he wouldn’t change careers because of the perks he enjoys such as being able to eat lunch with his children almost everyday.
Other states have opted to grow corn, which is often used to feed animals. Fassett, with his many years in the agricultural industry, said the soil conditions and short seasons are better suited for hay.
vguthrie@durangoherald.com
