Oat hay is in demand both domestically and in the export markets. Oat hay is a good source of forage when harvested in the boot stage. It is often used as a cover crop when sowing alfalfa. Oat hay is also being planted in parts of the Winter Wheat Belt including Kansas, the Wheat State. Prices for wheat have declined making it a less attractive crop to these High Plains farmers. Additionally, the dry fall limited the planting of winter wheat and increasing the likelihood of an increase in abandoned acres of winter wheat.

Oat hay is being planted in winter wheat's stead. Due to the dry summer there was a sharp drop in forage supplies in the High Plains. These oats plantings are being considered as a way to increase forage supplies.

Further, the demand for oat hay in the export market to Asia has increased. Normally, most exports to Asia originate from the West Coast. The hay for these exports is typically procured as close to these export channels as possible. However, due to the immediate need for oat hay in the export market at least one exporter is reaching into to Central US to produce oat hay for export. (Those interested in contracting this exporter can call 913-294-2920).

With the increase in demand for oat hay an opportunity has emerged for farmers to increase cash flow in the spring and still harvest a fall crop as well.

For example, in Kansas oats are seeded in between February 15 and March 15. Oat hay has a good nutritional quality when harvested at the boot stage, which will occur between May 20 and June 10 with a yield of about 3 tons per acre. It is estimated to cost about $25 per acre to sow oats using the no till method.

Oat hay harvested at the boot stage will allow for the planting of another crop like grain sorghum or soybeans. Double crop soybeans can easily follow at hay since most to the stover will be removed as hay. Both conventional and no-till farming methods could be used for the second crop.

If the oat hay is harvested at the boot stage and is sold for export, it would be purchased and shipped immediately at harvest. Therefore, the oat hay crop would generate revenue in the second quarter when expenses are typically high as traditional crops are being planted. The second crop would then be harvested in the fall as is done traditionally.

Oats being used as a cover / nurse crop could also be harvested at the boot stage in late May / early June as oat hay and sold for export.

The price of oat hay will vary widely across the US depending on some degree on the transportation costs. For example, oat hay is expected sell for $65 to $70 per ton in the Kansas City area.