OSSIAN - From hay grower Dennis Weichers' perspective, the grass is greener on his side. Profits look promising.

The same can't be said for livestock and horse owners. Hay buyers can expect to pay big bucks in the coming months, which may force some to liquidate herds.

No matter which side of the fence people are on, 2008 hay crop sales promise to be memorable.

Weichers and farmhand Nathan Hearn spent June 25 at the Farm Progress Hay Expo near Ossian, the nation's largest two-day hay event, searching for new equipment to improve efficiency and make more money.

"We're expecting a good year because of the shortage (nationwide)," said Weichers, of rural Cedar Falls.

Quality hay is expected to be hard to come by throughout the county, though not impossible to find, this winter. Hay acres are down 2 percent nationwide to 60.6 million acres, and weather-related problems have plagued the nation's crop.

Drought has impacted acres in the South. In the Midwest, a particularly cold winter and wet spring and summer has reduced production.

Local forage experts say a harsh winter killed off about half the hay stands in Northeast Iowa, and newly seeded acres will produce only half of what an existing stand will make.

Plus, flooding has wiped out thousands of acres of pasture and hay in Iowa. Of the ground still serviceable, persistent rains have delayed harvest or ruined hay that was cut and unable to be baled. Most Iowa hay producers usually get four cuttings, but many will be lucky to get three.

Dale Thoreson, Iowa State University Extension livestock specialist, said it all boils down to less supply and more demand. And that means already-high hay prices are bound to escalate.

Beef producers who normally rely on now-flooded pastures near rivers and creeks to feed animals during the summer are buying hay. But for how long?

"Some will dry lot them or custom graze out of the area, or just sell them. I would expect a big run at sales barns," Thoreson said.

Judging by hay prices at the Fort Atkinson Hay Auction, that's a possibility. Large squares (about 800 pounds) and round bales (about 1,600 pounds) fetched up to $160 to $170 per ton. Prices have doubled or more compared to last summer. In some isolated cases, Thoreson has heard of people paying $200 to $250 per ton.

Small square bales (about 50 pounds), which horse owners prefer due to ease of handling, also brought up to $170 per ton on June 25. That equates to about $4.25 per bale, compared to $3 last year.

"I've heard of horses showing up in pastures. It will come," Thoreson said, referring to people releasing animals because they can't afford to feed them.

Weichers, a contractor turned forage producer, is currently selling small squares for $3.50 off the farm. He makes about 300 acres of hay just west of Cedar Falls.

"You better talk to me now before winter when it gets to $8," Weichers joked.

But in every joke, the saying goes, there's a bit of the truth - especially in this case.

Thoreson said bales are already fetching $8 to $12 each in some parts of the country like Florida.

Even though Weichers still has two-thirds of his first hay crop yet to make, he chose to attend the Hay Expo. He says he wants to upgrade equipment that will harvest grass and alfalfa more quickly, while retaining quality.

Weichers has his eye on a Vermeer RZ800 double-basket rake. It can put 28 feet of hay in a single windrow, while not picking up debris from the ground that can hurt quality.

In the past, farmers with single rakes could only handle up to 9 feet of hay at a time. At about $26,000, Weichers said the Vermeer rake would be a good investment.

"It's pretty critical to keep hay fluffed so it will dry quicker. This year we're finding out time is money," Weichers said. "We're definitely looking to upgrade."

That's why officials with the Hay Expo think exhibitor numbers were up 10 percent. Ninety-nine businesses showed off everything from balers, hay racks and forage choppers to alfalfa seed and feed mixers.

Precipitation has hampered hay-making efforts, and with prices soaring, it's critical to make as much hay as fast as possible.

"That's why we have a higher exhibitor count," said Dena Jensen, a marketing specialist for Farm Progress. "There are fewer (hay) acres, and I think people want to make a better crop."

Joe Michaels, sales manager for Pella-based Vermeer, said the company strives to build high quality equipment that will save farmers time.

The company, among other things, was showing of its new tedders - a machine that picks up hay from the ground and turns it over to speed up drying.

"In the Midwest it was typically thought of as a rescue tool. Now people are adopting as a standard part of hay (making)," Michaels said.

In Iowa, the government predicted 1.5 million acres would be harvested this year, up 1 percent. Basically, the state recovered the 130,000 acres of hay ground lost last year when farmers plowed up hay in favor of corn.

Still, officials believe less hay will be made this year in the state, due to weather problems.

"Even with the new seeding in the mix, with the heavy rains they don't look good," said Brain Lang, ISU Extension crop specialist.

For fields not impacted by flooding, most will average four to six tons per acre. Weichers said he expects to be in that range.

When corn prices skyrocketed two years ago, many people plowed under hay fields to plant Iowa's most bountiful crop. Judging by gross income, that may have been a mistake even as corn nears $8 per bushel on the Chicago Board of Trade.

Three hay cuttings at 5 tons per acre at $170 per ton will gross $2,550 per acre. Many experts believe hay will only escalate in price.

Crop specialists believe Northeast Iowa farmers will be lucky to get 150 bushels per acre for corn. At $8, that's only $1,200 per acre.

Why don't more people raise hay?

"It's that uncertainty with the weather and it could be $40 a ton," Thoreson said. "We import a lot of hay in the state. There's a lot of demand."

Contact Matthew Wilde at (319) 291-1579 or matt.wilde@wcfcourier.com.