Valley Video Hay Markets: Barry McRea brokers high-quality hay across the U.S.

Hay is a necessary commodity for most ranches and dairies, and many farmers make a living growing hay to fill these needs.  

Bringing hay growers and buyers together is an important part of agriculture, and something Barry McRea does very well. 

Barry started his hay market 24 years ago. He wasn’t a farmer or a rancher himself, but he realized there was a need for hay brokers who could help people find good hay when they needed it, as well as a way for hay growers to have a dependable market for their crops.  

He also knew of a number of local farmers who could supply the hay. 

“At the time, the internet was pretty new so we started putting on internet video auctions for hay,” Barry shares. “Back then, there wasn’t a lot of competition for this, so it was relatively easy to establish customers.”

Although it was a new concept, Barry generated a lot of popularity, gaining customers across much of the U.S.

With the ability to line up buyers and sellers, Barry’s video hay market was able to help farmers and ranchers in many states who needed hay, especially in drought years. 

Barry says, “2012 was a big year, with drought across large areas. We shipped a lot of hay to Texas, Oklahoma and New Mexico. Our usual market for dairy hay is eastern Colorado, but our business soon expanded and we built up a lot of buyers.” 

Local growers

During the past 20-plus years, Barry’s business has primarily been based on about 40 growers within a 50-mile radius of Torrington.  

“Since the beginning, I’ve pretty much used the same growers in this small area to send hay all across the country. Those farmers have always been able to supply the alfalfa we’ve needed,” he says. 

“I may sell hay for about 100 different growers during any given year, but I have about 40 of my favorites who have been working with me for 24 years,” he adds.

Farmers in eastern Wyoming have the ideal climate and irrigation water to grow really high-quality alfalfa.  

“It’s great to have so many growers nearby because I don’t have to travel all across the U.S. to find hay,” Barry notes. “I just buy it here within a 50-mile radius in our area, and it is generally some of the highest-quality hay in the nation.” 

Barry notes hay from the local growers he works with is usually very consistent in quality as well. 

He also shares, on years when there is an over-supply of hay, he gets approached by even more sellers looking for someone to buy.

“But I have to stay loyal to my reliable sources,” he states. “The growers know me, and a big part of selling something across the U.S. to various buyers is that growers know they will get direct payment from me.”

“I am the one who has to fight the battles and make sure we get payment from the buyers,” he adds. “My growers are assured they will get paid. My job is to locate the hay, do the tests, find a buyer and guarantee payment. Most of this business is based on loyalty and trust.”

Nationwide buyers

According to Barry, a lot of hay sold through his auction goes to dairies, while a fair amount also goes to ranchers, especially those south of Torrington.

However, he notes this changes a little every year, depending on weather, hay prices and geographic regions.

“Generally, there is someplace around the country where there’s a dry spot and hay production and pasture are in short supply,” he states. “Sometimes it’s Texas. Sometimes it’s Iowa. A few years ago, two-thirds of the hay we shipped out went to Montana. Generally, though, there’s always a need.” 

He continues, “Ironically, this year has probably seen the lowest demand for hay in the 25 years I’ve been doing this. The hay inventory finally became so high, prices are down in spite of many drought areas around the West. Everyone over-produced alfalfa last year, so the areas that are dry this year still had a stockpile and hay was generally available.” 

Another situation Barry has faced this year is a lower demand across the board for hay because cow numbers are down. This is the lowest the national cow herd has been for over seven decades.  

“Cattle numbers are lower than many people realize, and the demand for hay consumption on ranches is quite a bit less than it would have been a decade ago or so.  Feedlots have less inventory of cattle, so they are feeding less hay this year,” he explains.

“The dairies are also feeding a bit less because all of the commodities including corn, soybeans, cottonseed and cotton hulls, etc. are cheaper. A lot of these commodities are also closer – with less transport cost – to the dairies and feedlots,” he adds. “They are closer and cheaper, so all around, hay consumption has been lower this year.”

Despite this, Barry’s business continues to benefit growers. He notes he will start selling first cutting alfalfa in July and continue to sell hay throughout the year.

“It’s always been a big benefit to them, to keep moving their product through many different marketing times,” he says.

To get hay to buyers across the country, Barry utilizes several trucking companies – two local trucking firms in the area for closer hauls and a local dispatcher who uses backhaul trucks to take hay out on their backhaul.  

“This year, oddly enough, about 70 percent of my sales went south to Texas or east to Iowa,” he shares. “I used backhaul trucks for those since both those hauls average at least 500 to 600 miles either east or south.”

“Our local market consists of either ranchers or the dairy market in the Greeley, Colo. area, so I use local truckers for those short hauls,” he adds.

It all fits together, with a networking system and team effort. 

Quality assurance 

To ensure the hay he brokers is of the highest quality, Barry requires hay be tested.

“I get a list of all of the hay and its test results,” he explains. “This makes it easier to match it up with the buyer’s needs, whether it be ranch hay, dairy hay or feedlot hay.”

The matchup also includes hay sampling and testing to make sure the hay meets the needs of a certain stockman.  

“I make a full circle in the 50-mile radius and take samples from all of my hay-growing clients’ alfalfa and send them in to laboratories for testing,” he says. “Then, from those samples and test results, I can make a fit.”

Barry does this all by himself, with the help of one employee.  

“I have a great bookkeeper,” he states. “I am very fortunate to have efficient bookkeeping for this business. She works out of her house and takes care of all our records. When the farmers weigh their hay, all records are e-mailed directly to my office and she takes care of it. Payments to those growers are made weekly.”

“We used to use the mail for all of this, but now we  use direct e-mail for the weigh tickets, payments, etc. which makes it much more efficient,” Barry continues.

“So, I have one bookkeeper, two local trucking companies and a dispatching outfit I use all the time for the backhaul trucks going back out of this part of the country,” he explains. “It’s turned out to be a great system. We weren’t smart enough to think of all of this when we first started, but we always made it work and made improvements when we could.” 

Additionally, Barry’s oldest son Brock McRea built and updates his website.

For more information about Valley Video Hay, visit valleyvideohay.com or call Barry McRea at 308-235-5386.

Heather Smith Thomas is a corresponding writer for the Wyoming Livestock Roundup. Send comments on this article to roundup@wylr.net.