RAIN is adding to the frustrations of farmers producing hay for sale this season.

It will be ideal for farmers who have paddocks sown to millets, lucerne or brassica crops.

Subsequent grazing and perhaps some silage may result, however, in general, the rain has come at the wrong time of the season and has caused significant problems for hay producers.

Good growing conditions in many areas, combined with low grain prices have given many grain growers an opportunity to cut crops for hay.

Ample stocks of high-quality cereal and vetch hay are already baled. Growers have been eager to sell their hay and move the bales from their paddocks.

Although many of these bales are shedded, many are still stacked five or six bales high in paddocks too wet to access.

When paddocks dry sufficiently to carry heavy trucks, the quality of the top bales of these stacks will be assessed. Top bales will need to be discounted to find a market against the other supplies of downgraded hay.

Extended rain events on windrows in the later districts of southeast Australia are leaching nutrients from exposed hay.

Farmers producing this type of hay will continue to feed this to cows through next year.

However, there is now a greater likelihood that livestock feeders will seek to buy higher-quality hay with more expensive freight costs from earlier districts to compensate.

The overall cost of quality hay delivered to farms will be the deciding factor. This situation could create an expanding premium for higher quality hay next year.

At present the market for hay is quiet.

Prices for cereal hay are $145 to $165 a tonne delivered to buyers around Shepparton and Kyabram, $155 to $175 a tonne delivered to Colac and Cobden and $180 to $210 a tonne delivered to Warragul and Leongatha.

The favourable spring will create a greater supply of pasture hay for sale in western Victoria.

A higher portion of this hay will be damaged by rain with many stands of grass still in windrows waiting to cure for baling.

Recent large hay fires have highlighted the significance of proper storage. About 20,000 tonnes of hay was destroyed at Paskerville north of Adelaide and 4500 tonnes was destroyed at Horsham.