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Selling hay

S

Super Steve

Member
So i have a couple locals small farms that i sell a few round balesto every year.

In past years we always had our hay cut and baled by a custom guy but this year i went out and bought my own mower and round baler.

So heres the question, last year i was charging $30 for a 5x5 bale, this year i will only be selling 4x4. Whats a fair price to charge for the smaller bale?
 
If bale tightness is comparable, just go by volume:

5x5: 98 cubic feet
4x4: 50 cubic feet

Just call it half the size, so half the price?
 
Steve,
If you are selling hay by volume, which translates to weight and the bales are the same density then your new bale has 51.19% the volume of the big bale and therefore the price should be 51.19% of the big bale or $15.36.
Bud
 
Was in a TSC couple days ago. They had SMALL, Small squares - Straw $4.50, mediocre grass hay - $8.59. Bout dropped my dentures!
 
Not a question for here. Get your hay tested. then look at nearby hay auction or sales reports. There are sites for hay sales all over the U.S.
But for a guideline, lots of alfalfa, dairy quality, went out of this township last fall and winter , big squares for $220.
Estimate this winter price at 250
 
all the math is great
NOW will you make anything at 51% or does the price need to be higher to cover costs, repairs, property taxes with something for your time
Then your customers need to decide whether they will pay more or go to somebody else
they might even like the smaller bales better due to easier to handle
good luck
Ron
 
talked to one thismorning and said "ive got some good news and some bad news, the good news is im lowering the price of hay, the bad news is the bales will be smaller so you will likely need to buy more."

they seemed fine with that and i said id lower the price to $20.

they also said they will likely buy 3-4 wagon loads of small squares because there small hay field just isnt yeilding this year
 
If you had true 5x5 bales they are 78 cu ft, the 4x4 are 50 cu ft. You should charge 65% of your big bale price for the smaller ones.
 
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