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June 8, 2010

Weather and World Economy take their toll on fescue seed industry

Parson, Kansas — Even though the cold months are long gone, spring has sprung and summer heat is raising the mercury, fescue seed harvesters are still facing issues leftover from winter.

“This year’s fescue seed crop is bound to be down again,” Keith Hankins, general manager of Pennington Seed in Greenfield, Mo., said. “The cold, wet winter meant guys fed a lot of hay and they grazed a little longer than usual.”

However, weather isn’t the only culprit respon-sible for the diminished fescue seed crop.

According to Hankins, producer enthusiasm for managing the fescue seed crop dwindled due to high fertilizer prices and low seed prices last year.

There is, however, a little light at the end of the tunnel though.

“We have had good spring moisture and for the guys that got their pastures fertilized and got their cattle off in a timely manner I think there is good potential for a seed crop on some acres,” he explained.

Even with some good potential across the country, Hankins feels the fescue crop itself will be short once again this year.

Unfortunately, weather isn’t the only issue fescue seed producers are dealing with.

“The economy has taken its toll on lawn grass seed sales,” Hankins said. “This is bad since virtually every fescue seed produced and sold in the four-state region is used for grass seed sales.”

According to Hankins, last year’s failing economy caused fescue seed sales to be off 20 to 25 percent.

“We were optimistic and hoped for improvement this year but sales were down an additional 15-20 percent again.”

Hankins doesn’t blame the economy solely for the decline in fescue seed sales.

“The weather didn’t cooperate with us this year,” he said. “Weekends in March and April are when most people are getting out in their yards and getting stuff done. This year we had bad weather during those months so that contributed to seed sales being down.”

All of these issues continue to affect the market which is solely driven by supply and demand.

“With the weather and the economy affecting sales we aren’t using as much seed which means there is an abundant supply of seed,” he explained. “This slows the recovery of fescue seed price.”

As far as overall harvest is concerned, Hankins feels it is right on time.

“I would say fescue seed harvest will start around June 18,” he said.

Hopefully, according to him, the weather will cooperate.

“The closer we get to harvest the less we want to see strong winds, rain and hail.” Hankins said. “We need moderate rainfall to help the seed fill out and be heavy and in good shape. As harvest begins some good open weather would be ideal.”

In addition to weather, insects can have a lasting affect on the fescue seed crop.

“Producers need to get out and scout fields in the next week for armyworms,” he said. “Cool, wet weather lends itself to armyworms and it is something to be aware of.”

Hankins reminded producers of the importance to harvest the best quality seed they possibly can.

Overall fescue seed production, including turf-type grasses in Oregon, is typically in excess of 200 million pounds of seed per year.

“Of that, Kentucky 31 tall fescue makes up for almost 80 million pounds of the overall production,” he explained.

According to him, the four-state area annually produces between 45 and 55 million pounds of Kentucky 31.

“If you look at it that way, fescue seed production from this area makes up for virtually all the Kentucky 31 seed used for grass seed across the country.”

Those numbers alone, according to Hankins, are the reason why fescue seed producers need to pay close attention to seed quality.

“The market alone is good enough reason to continue to spray weeds and fertilize the grass,” he explained. “The better the seed the more valuable it is.”

According to Hankins, Pennington Seed pays premiums for seed quality.

“We have what we call premium seed and super premium seed,” he said. “Premium seed receives a two cent premium and super premium seed is a four cent premium.”

Right now, according to Hankins, seed is bringing 20 cents a pound.

“I don’t expect it to decrease but if it increases it will be moderate,” he said. “Markets could creep back up if the harvest is real short.”

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