I'm right in the middle of this hay/drought mess and it has been a tough year.
While your free market risk/reward explanation is accurate, perhaps dave2's frustration was more locally directed. I too watched with frustration as local farmers who already had really good milo crops sell the residue hay at triple the normal cost. There was no doubling. It went from 30 bucks a bale to 90 almost overnight.
While it is true that it is the free market at work, it's a shame that one farmer would stick it to another just because they can.
Furthermore, I find it amusing that while these farmers talk about hay prices and free market, they line up at the FSA office for subsidy checks and cry to the government for protectionist policies to protect them from foreign competition.
If we are really going to believe in the free market then we need to eliminate all government subsidy programs.
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