UTIA Research Seeks to Improve Price Discovery and Market Transparency in Hay Markets

Nov 30, 2022

A team of researchers from the University of Tennessee Institute of Agriculture is launching a study to improve price discovery and market transparency in hay markets. These improvements will help create a more efficient market and provide valuable information that benefits buyers and sellers of hay.

While hay constitutes a major feed source for many livestock operations, market values for hay have rarely been studied. Existing research focuses on hay auctions; however, most hay produced in the U.S. is not marketed through auctions. Rather it is grown and fed on the same farm or is sold through private transactions, which means no publicly available transaction information is recorded.

This lack of hay market information helped prompt the latest UTIA study, where researchers will conduct experiments to determine what hay attributes are valued by buyers and the value placed on those attributes given a variety of factors. Understanding the valued attributes can help provide guidelines to creating additional transparency, allowing producers to make more informed purchasing and selling decisions.

“We expect this project will result in buyers and sellers using information such as bale weight and nutritive assessment to determine the value of hay rather than relying solely on visual attributes,” said lead researcher Andrew Griffith, an associate professor in the Department of Agricultural and Resource Economics. “Hay buyers will benefit by knowing the exact quantity and nutritive value of hay they are purchasing, which in turn should assist with managing livestock feed cost and nutrition. Sellers will also benefit by knowing the attributes hay buyers value, so they can package and market their hay appropriately.”

Tennessee livestock producers averaged 143 days of feeding hay in 2017, which emphasizes the importance of hay on regional cattle operations.

“While this research will influence operations of all sizes, it can have a pronounced influence on producers with small- and medium-sized operations who trade relatively small quantities of hay and are less familiar with market dynamics and pricing,” said Griffith.

The study will be conducted by Andrew Griffith, Karen DeLong, Chris Boyer, Charley Martinez and Jon Walton, all from the Department of Agricultural and Resource Economics. The researchers are partnering with the Tennessee Cattlemen’s Association and the Tennessee Department of Agriculture on this three-year grant study, funded by USDA’s Agricultural Marketing Service.

Through its land-grant mission of research, teaching and extension, the University of Tennessee Institute of Agriculture touches lives and provides Real. Life. Solutions. utia.tennessee.edu.

Source : tennessee.edu

Video: Spring 2026 weather outlook for Wisconsin; What an early-arriving El Niño could mean

Northeast Wisconsin is a small corner of the world, but our weather is still affected by what happens across the globe.

That includes in the equatorial Pacific, where changes between El Niño and La Niña play a role in the weather here -- and boy, have there been some abrupt changes as of late.

El Niño and La Niña are the two phases of what is collectively known as the El Niño Southern Oscillation, or ENSO for short. These are the swings back and forth from unusually warm to unusually cold sea surface temperatures in the Pacific Ocean along the equator.

Since this past September, we have been in a weak La Niña, which means water temperatures near the Eastern Pacific equator have been cooler than usual. That's where we're at right now.

Even last fall, the long-term outlook suggested a return to neutral conditions by spring and potentially El Niño conditions by summer.

But there are some signs this may be happening faster than usual, which could accelerate the onset of El Niño.

Over the last few weeks, unusually strong bursts of westerly winds farther west in the Pacific -- where sea surface temperatures are warmer than average -- have been observed. There is a chance that this could accelerate the warming of those eastern Pacific waters and potentially push us into El Niño sooner than usual.

If we do enter El Nino by spring -- which we'll define as the period of March, April and May -- there are some long-term correlations with our weather here in Northeast Wisconsin.

Looking at a map of anomalously warm weather, most of the upper Great Lakes doesn't show a strong correlation, but in general, the northern tiers of the United States do tend to lean to that direction.

The stronger correlation is with precipitation. El Niño conditions in spring have historically come with a higher risk of very dry weather over that time frame, so this will definitely be a transition we'll have to watch closely as we move out of winter.