113 



The average acre of alfalfa hay ground in Dcucl County produces 500 RFV units on an average 

 year. 



Figuring the price of hay and the payment per RFV unit 



For our formula we used a hay price of S60 per ton, thisis much lower tlian the price alfalfa 

 hay is bring in the market which is between $75-90 sold out of the field. We used our S60 price to 

 come up with a 35 cent value for each RFV unit using the following fonnula. 



Ton Price ($60) * Average per acre yield (3 ton) / total RFV per acre (500) = .35 



With this price established and 500 RFV units as the county average, the following foirnula can be 

 used: Using the current disaster figure of 65 percent we estimated that the government would biise 

 thier payment on 325 RFV units in Deuel County. 65% of 500 RFV unit.s = 325 RFV 



TIic ASCS, another agency or the producers wouhi be required to gather hay sainple from 

 each cutting and get these samples tested. Tlie average of these samples would be multiplied by the 

 county yield and the difference between tlic 65 percent factor and the producer's total RFV hay 

 sample units would be paid at the 35 cent rate per RF\' unit. 



Example - 65 percent figure (325) - (Producers average RFV units (100) * 

 County average yield (3)) = 25 



25 ♦ .35 = $ 8-75 / acre 



Tlie government should treat molds and toxins in hay tlie saine way they treat these in 

 grain. In otlier words there should be no value for hay infected with toxins just like there is no 

 value for grains infected with toxins. 



Grass hay and mixed hay should also be eligible for the quality di.saster benefits. The 

 county average RFV per acre uniLs should be factored down for tliese hays. 



Wc look forward to your response. If you have any questions contact me at 795-3741 . 



Sincerely, 



John Effting, Deuel County DRA Chaiiperson 

 RR 1 Box 44 

 Strandburg, SD 57265 



