Fair price for hay?

PJH

Well-known Member
My neighbor asked me to cut the grass hay on a field that he just bought from another neighbor's estate. I rolled up about forty 600 pound bales. I want to pay him a fair price for this hay. I took four of the bales across the scale at the local quarry, so I'm comfortable with the bale weight. I did all of the mowing, raking, baling, and hauling. My equipment is old and long paid for, but reliable. He owns the property, and it was probably fertilized by the previous owner, but can't be confirmed. This field is about a quarter mile from home, and he says he'd like me to make the hay in the future. He's a good helpful neighbor, and I want to treat him well. I haven't done any custom baling in the last thirty years, so I'm out of touch. My expenses were twine and about 15 gallons of gasoline.

Any suggestions?
 
I turn down hay land like that every year and the land I do cut, I cut the hay, get all the hay and fill out a reduced real estate tax form for the county.Plus it saves them the cost of
having to pay some one to brush hog it.Apparently hay land deals vary widely across the country.
 
If its a good field.. around here would be on halfs.... you keep half the hay, or you get paid for it or trade cash value for it... if a sparse field, would be by the acre...
 
Around here hay is put up on halves so divide the amount you baled in half and buy that half from him . Check Craigslist for local price on hay. But as the others have said you have done him a favor most people won't take grass hay unless they have horses plus the value of keeping that lot clean.
 
Round here landlord would get half of the rolls. Sounds like your neighbor may not be interested in hay.,. In that case you could sell the hay and give proceeds to him less a reasonable commission for your trouble.
 
I shoot for 60% for me when doing on shares, depending on how difficult the field is, but I don't pay rent on most of the fields I work. The ag tax exemption and taking care of the land is enough of a benefit for most of the land owners.
I get $3 a bale for 45lb bales when selling outright
Pete
 
I'm sure it varies by region. In my area the land owner gets 1/4 or 1/3 depending on if he fertilized or not. On small fields the owner is usually glad to get it cut and the baler get it all.
 
I'm not sure of the size by pound but from what I see along the highway the rolls about 5' in diameter are running $75.00 in North Texas.
 

Here in NH the owner gets no more than 20% and that is if they are providing a good share of the inputs.
 
Iowa State 2016 rates;

These are Iowa State rates for 2016.

Mowing ave rate $12.30/acre range of $6-$18

mowing conditioning $17.00 range of $8-$21

raking $6.55 range of $3.00-$10.00

Baling round/twine $10.70 range of $8.00-$14.00

I don't know if these figures will help you or not. It is just a general guide, nothing set in cement. You would have to find the average price of hay in your area and subtract these figures from the hay price. It sounds to me like you can figure on the low side for expense per acre since your machinery is not expensive and he is a helpful neighbor.
 
Around here, last I heard it was 60% going to the person that puts it up. Large round bales of grass hay are around $70 to $80 a ton (typically at least 1500lbs., rarely see smaller bales around anywhere here).
 
(quoted from post at 17:56:59 10/20/16) I'm not sure of the size by pound but from what I see along the highway the rolls about 5' in diameter are running $75.00 in North Texas.

Priced at $75 & selling for $75 are 2 different things.

I have prospective hay customers walk away from good 4X5.5 bales of fertilized green Coastal at $50. I bought some excellent 1st cutting pre-emerged fertilized Coastal for $40 delivered to my place & some last years cutting of fert Coastal for $25 delivered.
 

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