Farm Talk

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June 9, 2009

Fescue seed outlook

Cool spring temperatures with adequate rainfall amounts were just the right ingredients for this year’s fescue seed crop in southwest Missouri.

However, according to Keith Hankins, vice president and general manager of Pennington Seed Inc. in Greenfield, Mo., there are some needed ingredients missing to complete a recipe which will result in profit.

“It looks like fescue seed harvest is on schedule this year and should begin around June 20th,” he explains. “The cool temperatures and and timely rains have been favorable for this year’s seed crop, however, there are some set-backs.”

The negative side of this year’s crop, according to Hankins, is that, due to costly fertilizer prices, a lot of pastures didn’t get fertilized and, if they did, the amount was reduced.

“High fertilizer prices and a slow economy will definitely have an impact on this year’s seed crop,” he says.

Currently, the price for Kentucky 31 Tall Fescue is $.25 cents a pound for dry seed.

“I am guessing the price will stay right around that mark during harvest,” Hankins says. “There may be some potential for prices to go up, depending on the size of the crop, but I would say this year’s fescue seed will bring in the range of 20-25 cents a pound.”

That price is totally dependent on supply and demand, according to Hankins.

“Last year, seed was at about 45 cents a pound and we had a large crop in excess of 100 million pounds in Missouri,” he explains.

Second to Missouri in seed production is the state of Oregon. Hankins said last year they harvested around 20 million pounds of seed.

In Missouri, according to Hankins, fescue seed production goes up to about where Highway 50 runs east and west. It then continues on over to north of the Bootheel, then running towards St. Louis.

“In addition to that, there is fescue grown for production in Arkansas, northeast Oklahoma and southeastern Kansas,”he explains. “I have always kind of tied Kansas, Oklahoma and Arkansas into the Missouri crop since it usually ends up here.”

Annual fescue seed usage in the United States is about 80 million pounds, where virtually all the seed is used for lawns.

“This year we are looking at as much as a 50 million pound carryover, which leads to lower seed prices,” he says.

Fescue is a unique crop, especially in the way it is used for lawns, according to Hankins.

“Fescue covers a wider area than any other grass seed on the market,” he explains.

Seed harvested in Missouri and Oregon is spread all the way through the Midwest.

Hankins says fescue is used as lawn seed as far south as Georgia, Alabama and Mississippi and all the way to North Carolina, Virginia and Maryland.

“Although fescue is grown all over, the big fescue belt is actually southern Ohio, Missouri, Kansas and Oklahoma,” he explains.

The wide usage of fescue is what requires such a large amount to replenish each year’s supply.

“When you look at fescue as a lawn seed you have to figure that almost all of those yards are re-seeded every year to keep them healthy and weed free,” Hankins says.

Looking at the pre-harvest forecast, Hankins feels producers are in pretty good shape.

“We are close enough to harvest now that the crop is already there,” he says. “The rain probably won’t shut off enough to take away the potential for seed.”

Guessing, Hankins figured an-other couple of inches of rain is sure possible prior to harvest but he felt positive that amount of rain wouldn’t affect the seed crop.

The question at this point is how could storms, wind, rain and hail affect the crop as harvest begins?

“Fescue can handle some storms in the early part of harvest since the seed is still pretty green,” Hankins says. “Once we get around the 24th or 25th of June any violent storms with wind will shatter the standing crop and take it away pretty quickly.”

Weather, according to Hankins, will affect producers differently according to their harvest methods.

“Lots of fescue is windrowed so it is going to have more protection than what is cut standing,” he explains. “Prolonged wet weather is the only thing that will affect fescue that is windrowed and that typically isn’t a problem.”

When looking at the potential fescue seed crop weather is only one part of the equation. The other is insect problems. However, Hankins feels this year we are in good shape due to the fact that insects haven’t been an issue.

“We haven’t seen any insect problems this year but there is always a possibility still,” he says. “We haven’t had any armyworm infestations anywhere and that is typically what hurts us the most.”

Even with favorable weather and a low insect threat this year Hankins expects crop potential to be down this year.

“Due to lower seed prices and high fertilizer prices I think there will be less acres harvested this year for seed production.”

As with any good recipe, the finished product is only as good as the ingredients used.

Hankins reminds producers of the importance of growing the best possible crop they can in order to keep their share of this 80 million pound annual market.

“Growers need to continue to look at our share of the Kentucky 31 Tall Fescue market,” he says. “We need to continue to work on growing quality seed.”

The best way to do that, according to Hankins, is to spray pastures in order to control weeds, as well as selecting pure pastures—those that are not contaminated with orchardgrass and ryegrass—for seed production.

“What will bring prices up and keep us in the seed market is quality,” he concludes.

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