| 2008 Market Report
By Don Hijar
What is affecting grass prices today? Many factors influence grass prices. The most influential factor this year is the record high grain prices. This forced companies producing grass seed to pay higher prices to the grower to get native and turf grasses in production.
The number of total acres available for production was greatly reduced because many farmers planted corn and wheat. Farmers have received record high prices of more than $9.00 per bushel this year for their corn and wheat crops. This has caused a reduction in the number of acres in turf grass production and native species production. The Bureau of Land Management purchased large quantities of the 2007 native grass crop which made a huge dent in the already short supply.
Prices for elite varieties of turf grass will be higher in 2008 and potentially even higher in 2009 due to the reduced number of acres available for production. Production of native grasses and some forage grasses such as orchardgrass will be higher in 2008. Small grain prices are generally higher than 2007, especially Winter Wheat and Spring Wheat.
There was not a Conservation Reserve Program sign-up in 2007 and there will not be a sign-up in 2008. This has drastically reduced the demand for warm season native grasses. However, warm season native species will remain strong because production was down.
The most significant factors on native seed pricing and availability are the Farm Bill, the economy of our nation, the weather, commodity prices and budgetary appropriations for conservation for the U.S. Forest Service, Bureau of Land Management, Farm Services Agency, Natural Resources and Conservation Service, and other government entities.
It is not only the seed industry that determines prices. Other factors that influence the market include government programs and the current administration's views on natural resources and the politicians that either fund programs that use native species or that do not fund these conservation programs.
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