I am a bit sick to my stomach right now… I just paid $23.10 for one bale of Orchard grass.
ONE BALE. A 95lbs bale at that.
It costs me double now to feed my horses as it did 5 years ago.
You can see why there is such a crisis for California horses who are being dumped right and left. People didn’t intentionally end up with too many horses to feed… the prices simply got way out of hand and there is no one stopping it.
It isn’t the water crisis.
If you ask any grower, they will tell you two things:
1) The government will pay them to grow corn for ethanol.
2) They can ship all of their hay over to Japan in one load, for premium prices. So, they only have to make one sale and its done for the year.
WHY ISN’T THE MARKET READJUSTING?
Because gas prices are so high.
If gas prices were lower, growers from out of state would bring it in and sell it on the street corner for a killing!
ISN’T THERE ANY WAY TO KEEP THE HAY IN THIS COUNTRY – FEEDING ALL THE STOCK IN CA?
Dunno. The only way the market readjusts is through competition or intervention. Because gas prices are so high, there is no competition.
Is it possible to put hay on a rail car and get it out here? I have no idea. But, if anyone could get large quantities of hay out to a rural train yard in California (Auburn, Sacramento), trucks would line up far and wide to buy.
I’d be first in line.