Although the chart below depicting break-even alfalfa hay prices from Wyoming was completed in 1996, the comparative values are still worth noting. The chart assumes you pay an additional $1 per pound for the improved variety seed compared to the cost of Ranger, a variety resistant to bacterial wilt that was developed by the USDA and released commercially in 1942. The Ranger + 1% column indicates that if hay prices are higher than $102.59 per ton and interest rates are 13 percent, it is still a good business decision to plant the improved variety.
With CROPLAN GENETICS® alfalfa varieties [historically yielding 5 percent to 25 percent higher than public varieties, and dairy-quality hay selling for much more than $150 per ton, now is a great time to take advantage of the potential profits from products such as Rebound 5.0 and Dura 843 alfalfa varieties. No matter which dormancy category you select, CROPLAN GENETICS® alfalfa varieties have a product to fit your market’s nutritional needs and your field’s agronomic conditions.
BREAK-EVEN PRICE OF ALFALFA HAY1,2
|
Net return per acre when improved variety yield equals
|
| Interest rate |
Ranger + 1% |
Ranger + 3% |
Ranger + 5% |
Ranger + 7% |
Ranger + 10% |
| 0% |
$78.20 |
$45.70 |
$39.20 |
$36.41 |
$34.32 |
| 5% |
$87.21 |
$48.67 |
$40.98 |
$37.68 |
$35.21 |
| 7% |
$90.96 |
$49.91 |
$41.73 |
$38.21 |
$35.58 |
| 10% |
$96.78 |
$51.86 |
$42.92 |
$39.05 |
$36.16 |
| 13% |
$102.59 |
$53.83 |
$44.07 |
$39.89 |
$36.75 |