Hay Production in Texas: What You Need to Know

Key takeaways: 

• Thanks to its vast landmass and critical cattle industry, Texas is also a great state for hay production. 
• What type of forage species you should grow is dependent on your region’s climate, your land’s soil, and which breed of cattle your harvest will eventually feed.
• Starting up a hay operation could require various types of financing, including equipment loans, agribusiness financing, and forage insurance. 

As one of the top-producing cattle states in the U.S., Texas needs massive amounts of resources—land, feed, labor—to take care of its herds. So if you’re a Texas landowner, there’s big profit potential in growing the crop that will feed all those cows. Without hay producers, one of the biggest Texas industries would struggle.

Hay production is big business in Texas — and the whole country. Across the U.S., total value of hay actually exceeds the value of all other crops, with the exception of the heaviest hitters: corn and soybeans. In terms of acres harvested, Texas is the top hay producer in the U.S.

If you want to maximize your acres’ profitability and are thinking about jumping into hay production, here’s what you need to know about the industry. 

Why is Texas such a great place for hay production? 

Texas has the top resource that hay needs to thrive: lots of land. Texas has over 130 million acres of agricultural land, with much of that suited for hay production.  

Thanks to that huge landmass, there’s also a wide variety of climate conditions throughout the state. This provides the opportunity for different producers in different regions of the state to grow different hay types. For example, coastal Bermuda grass or orchard grass are more tolerant of high temperatures. But a species like timothy might not be as common, since it’s better suited for colder weather. Alfalfa, meanwhile, is adaptable to a wide variety of climates and can be found in several regions throughout Texas.

Finally, Texas is an excellent state for hay production because of the extensive demand for the harvests. With the largest cattle herd in the U.S. (more than 12 million head), there’s plenty of demand for hay — maybe even right next door to your acres.

How to select the right forage species 

First, match your hay type with your region’s climate. If you try to grow a cold-weather species in the South Texas Plains, for example, you probably won’t see much success. You can check in with your local agronomist to see which species might be right for your acres. 

That agronomist might also take into consideration your acres’ soil type. Do you have extra sandy soils, or heavy clay? What’s the drainage like on your tract of land? What’s the pH levels of your soil? Will you be rotating your hay species with other crops? All of these elements factor into soil health — and can impact which seeds you need to plant.

You’ll also want to think about the end destination for your hay. Whether you plan to use your hay harvest for your own animals, or plan to sell it to other cattle producers, it’s good to know what type of cows will be feeding on your harvest. Certain breeds might have specific nutritional needs, which can impact which hay species might bring you the most revenue. 

What else should hay producers consider? 

Make sure to have the right equipment on hand, like balers or tractors. If you’re looking for financing help to build up your fleet, Texas Farm Credit offers equipment loans, including custom ones for hay baling.

You’ll also want a strong weed management plan. This can include mowing weeds before they can reproduce, prescribed burning, biologicals, or herbicide applications. Chat with your local agronomist to see which methods will work best for your specific acres.

Storage capacity is also an important factor for hay producers. Once you bale your hay, it might not always go immediately on a truck to its next destination. That’s why it’s important to have enough appropriate storage capacity for when you’re waiting to sell your next batch.

Hay can be stored both indoors and outdoors. But you’ll want to consider your region’s climate before deciding to toss everything outside. If you’re in an area with high humidity or lots of precipitation, this could lead to higher losses or damage to the hay’s quality. 

Barns are often the best protection from the elements. If you’re looking to build more storage capacity on your acres, agribusiness financing can help you get there. Texas Farm Credit offers a range of loans that can finance facility construction costs. 

And just like with any other agribusiness, don’t forget insurance. Hay, similar to any other crop, is at the mercy of the weather. If there’s a natural disaster or a drought during the season, you don’t want to be staring at hundreds of ruined acres — and lost income. Texas Farm Credit also offers Pasture, Rangeland, and Forage insurance policies to protect your investment.

Get help from the experts

Hay production in Texas requires a lot of moving pieces. Whether you need a land loan to launch your first hay-production acres, a construction loan to build more storage capacity, an equipment loan for a new baler, or an insurance policy to protect all of the above, Texas Farm Credit is there to support you. 

Apply today, or contact our team to get started.