FRUSTRATIONS for hay producers continue.

Recent rain will slow baling in southern areas of Victoria, although hay baling is all but complete in the northern areas.

This rain has caught much of the hay harvest in the Western District.

While much of the pasture hay between Lismore and Mortlake has been baled, little hay has found its way to storage.

Fortunately, farmers in this area produce round bales, which will reduce the downgrading effects of rainfall.

Similar circumstances have affected farmers making hay in the Benalla and Wangaratta area.

The hot conditions earlier this month had brought all hay paddocks in line for cutting at a similar time.

Baling was over in a few days and the area has a healthy supply of round baled pasture hay for use on local farms.

Rain in southwest Victoria may be useful.

Some paddocks are still green enough to recover with rain and produce further green feed.

Little hay is moving at present. Most dairy farmers and livestock producers are using their own stocks of paddock feed, silage and hay and are confident of fodder supplies.

Two key factors will limit Victorian hay supplies next year. Fodder produced from irrigated summer crops will be greatly limited this season due to restricted allocations and the relatively high price of temporary water.

Secondly, the continuing drought will limit the normal supply of hay from southern NSW.

In fact, some hay is travelling to the north at present.

Vetch hay from the Wimmera is reaching farmers in the Bega Valley at about $330 delivered and small quantities of pasture hay from Orbost have been moving to Bega.

Hay exporters are completing tests of contract oaten hay and grading hay according to nutrition and colour.

In general, the lighter-yielding crops of the northern Mallee are testing well with a higher portion of paddocks achieving the premium grade.

Most producers of export hay have hay stacked in sheds or stacked in paddocks four bales high.

While the rains will downgrade the top bales of most paddock stacks, the bales beneath these should still maintain their original export standard.

Cereal hay prices are down as much as 30 per cent, or $85/tonne this year compared to last.