January 8, 2001
Market is showing the effects of two years worth of drought and increased fuel prices. The question is not if an item is going up but how much.
Native grasses are in a very tight supply due to drought in production areas. Currently the market is estimating a high demand from drought stricken areas and CRP plantings. Many grass seeds have doubled in price from last year and some are not available.
Turf grasses are in much better supply than native grasses. Bermuda grass has increased in price slightly while cool season grasses have stayed the same. The short-term outlook for cool season grasses is for the market to stay stable. However, due to the low prices of the seed and high production costs the fall of 2001 may see an increased pricing.
Forage plants such as millet and sorghum are seeing some record highs. These items have doubled in price due to the drought of 2000 affecting yields. Small grains are currently available at reasonable prices but due to fall rain eliminating most plantings we anticipate tight supplies in regional areas.
Fertilizer prices will affect prices and supply of future seed crops. From the fall of 1999 to the fall of 2000 nitrogen prices have increased over 100% and many producers will not utilize sufficient amounts of nitrogen to produce quality and quantity of seed that the market needs.