The Hay Trade in America

The history of hay as a tradeable good in the United States is intertwined with the country’s agrarian past. From its humble beginnings in subsistence farming to its current status as a desirable commodity, the presence or absence of hay has been a critical component in shaping the agriculture market.

Colonial Period

The first European settlers of what would become the United States largely practiced subsistence farming. Livestock had to be imported, as the colonists found there were no native animals on the East Coast suitable for domestication. By the end of the 18^th century, Merino sheep were imported from Spain and became desirable livestock. The Merino industry was centered in the New England states, whose notoriously long winters necessitated supplemental feed. The demand for hay surged with the rising popularity of the sheep. German immigrants brought new agricultural technology, such as the cradle scythe, to the nation, greatly increasing productivity and paving the way for grass and grains to become significant trade items.

19^th Century

As westward expansion widened the country, the need for livestock feed increased exponentially. The Midwest proved perfect for large-scale farming. Horse-drawn mowers soon made it possible to collect huge quantities of hay, and the hay market took off. The market was subject to the agricultural busts that dotted the century, including grasshopper plagues, blizzards, and droughts. However, the country never stopped growing, and neither did the need for livestock. To keep up with the demand presented by growing urban centers throughout the United States, hay was shipped across country by rail, but there were no regulations or standards until near the end of the 19^th century. In 1893, a New Yorker named Willie Bullock recognized the need for a regulated hay market. He called a meeting of local hay traders, who agreed that all could benefit from set standards. By early 1895, the National Hay Association was born. The association drew up a constitution and agreed upon regulations that would be fair to both traders and shippers.

20^th Century

Industrialization expanded the agricultural horizon, and hay traders benefited greatly from this boom. When widespread use of electricity lit up the early 20^th century, farmers were able to increase the scale of their livelihood through the use of conveniences like automated milkers and confined animal feeding operations. Modern balers appeared around 1940, allowing hay traders to meet the rising demand for affordable livestock feed. Shipping speeds had increased sharply by this time as well, as automobiles became commonplace.

21^st Century

Today, hay is in high demand and short supply, primarily among the cattle trade. Use of corn as livestock feeddropped sharply due to the increase in ethanol use, as corn farmers discovered their crop was more valuable to the fuel industry. Additionally, as droughts ravaged the Midwest, hay bale prices doubled in 2012. Overgrazed land and lack of alternatives means cattle farmers are increasingly dependent on hay as feed, so it is unlikely that demand will flag in the foreseeable future.