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Hay Prices

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picassomcp

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I am looking for your thoughts on new crop hay prices, most specifically in central MN. I have just sold the last of my hay from last year, most every buyer wants to lock in their hay for next year and have been asking about price. I'm not a gouger by any means, I am just looking to get a fair price and retain the customer. I feel that hay is still in short supply and probably will be for at least another year or two until supplies get built up again, so with that in mind, I think the price will be a bit above "normal" but I don't think it will stay around the $75 I've been getting for my 4 x 5 rounds of good grass hay. Only minimal clover in these bales, mostly just good grass bales made dry with good green color and stored inside. I'm thinking of telling my buyers that I would presell for $50 a 4x5 bale or $3 a small square. I think at this price we would each be taking a gamble. I win if we have a good crop year and supply is plenty, they win if its only a 2 cutting year again and prices stay high.

What are your thoughts, and what is your starting price gonna be??
 
My friends neighbor just took some of last years second crop to East Central Livestock in Mora last week and got $9.00 per small square. Was talking to Jeff about that today. That is about 15 miles from my house.
 
My opinion... you're way to low on squares if you can get that money for round. I'd suggest more like 5 for the squares.... Don't waste an opportunity to recoup some of what you should have made the past 20 years. We seem to get a chance about once per generation to elevate the hay price around here and it doesn't change until the last of that generation dies or goes broke... so make use of it!

Rod
 
Too low in my mind. My neighbor sold some rounds from 2 years ago, he's getting $150 per 800 lb. round of second crop. That's over $300/ton.

Good hay is bringing over $300/ton, and poor hay is still bringing close to $200.

You have a local hay auction? That's always a good place to find current market price.

With how bad the winter kill was around here, lots of guys sprayed their fields and are going to corn in them. That means lots of new seeding this year, and in the mean time a shortage of hay. Thankfully, our hay looks pretty good this spring. Still atleast 2 weeks behind though.

Donovan from Wisconsin
 
I'm in east central MN, and that seems plenty reasonable to me. I don't think I'd be selling my hay for those prices if I had any to sell.
 
No carry over in the Mt west. I believe have in this area hay will sell for at least 175 for large rounds, 200 for large squares and 225 to 275 for small squares.Most of our small squares are Florida bound.
Bill
 
How can I sell high rfv ssb of alfalfa in FL. How many on a semi and what is the shipping? What do they bring wholesale there say this June?
 
Here in western Colorado,small squares are predicted to (on average) 8-12 per bale....IF you can find it
 
Put up small squars, and bring them to calif, and get over 20.00 for 85-95 lbs bales. Someone is making money, I doubt it is the farmer. Stan
 
Sir, if you goggle USDA hay prices it will give you a list of hay auctions I check Arthur, Illinois Hay prices, they have a Monday auction , with results posted on Tuesday, I have horses im a buyer, I paid 70 for large rds. Then I unroll them goes further. Quality of hay was average really dry here.
 
Man, I still can't believe anyone is paying those prices. Small squares here in Northern NY are anywhere from $1.50-3.00 and rounds might hit $30.00 for real nice, big ones. I sold a few 2 year old bales for $15.00 and am still waiting on money. Local guy who specializes in really nice hay is getting $28.00 for mixed grass rounds.

I see twine is another 10-20% higher this year. That will affect it some.
 
Well, after your input and a bit more thinking on my end, I think I will charge more. I do like the idea of recooping some of the money I've lost in years past making hay for nothing, and then hopefully the price will stay at a point that can cover costs in future years as well. I kinda thought that once new crop hay was available that the prices would crash, after a bit of thinking, I don't think that is going to happen, still a shortage. I still think it may be best to stockpile it until February again. I have the shed space, may as well use it and get a bit of return on it. Also the neighborhood kids have been bugging me for some work, I just might make a bunch more small squares, seems to be demand for those.
 
You sound WAAAAAY low on your small squares it must be the area. According to USDA pricing in NE Kansas:

http://www.ams.usda.gov/mnreports/dc_gr310.txt

Dairy, grinding alfalfa, prairie hay and brome steady. Movement slow to moderate. Alfalfa: Horse, 300.00, some 9.00/small square bale; Dairy, Supreme 240.00-275.00; Premium 230.00-250.00; Utility-Fair grinding alfalfa at the edge of the field, 190.00-220.00, alfalfa ground-on-the-truck 235.00, Ground and delivered 240.00-270.00. Grass hay: Bluestem Good, small squares, 6.50/bale, some 10.00/bale, 120.00-160.00, Mid squares 130.00-150.00, a little 165.00, large
rounds 50.00/bale, 110.00-150.00/T. Brome: Good, small squares, 7.00/bale, a little 10.00/bale, 110.00-150.00/T, an instance 180.00, Mid squares, 120.00-160.00, an instance 180.00, large round, 50.00/bale, 110.00-150.00/T; Grass
mulch, large round 60.00, CWF large round 100.00/bale. Straw, small squares 3.50-4.00/bale; large bales 60.00-65.00/T or 70.00-80.00 delivered. Sudan, Good, Large bales 150.00.




I advertised small square bales of brome from the edge of the field for $6.00 a bale - wish I had 1000s to sell instead of 100s. I said $5.50 a bale if they pick them up from the field - not one person is interested in doing that.
 
If you are being pressured to shoulder all the risk by forward pricing your hay why not ask for a realistic deposit or pre-pay to lock in the price, say 25 percent or more? It will keep the buyers from walking away if prices fall.
 
About the same things I'm thinking about. I usually sell 5x6's of mixed grass/clover hay, but one customer wants to try high moisture bales (4x5) when I do some for my own use. No idea how to price them. I know I'll be asking more for the dry bales, too, but don't know how much yet.
 
I was selling small square bales of pure alfalfa (1st cutting) for $8 per bale this past March and April. ALL of it went to horse people. One guy had horses and goats. They all seemed happy to get it and not one complaint. I had one lady that paid the $8 for about 60 bales, said she would give me $3 in the field. I told her I'd call her if I had any for sale at that price. Another guy wanted me to deliver 150 bales, said he would "inspect" the hay when I got there and pay accordingly. I asked him how stupid did he think I was.......the conversation went down hill from here.
 
I'm barely ahead of 1985's hay price here at 3$ a bale. Lots of folks tell me my price is too high, they can get it elsewhere at 2$ a bale, so I tell them I can't compete with that and get all they can before its gone.
 
There's a couple of twits around here selling hay for 2/bale. Or mabey I should just call it what it is... about 1/3 of a bale. Mabey half on a good day. I had a guy tell me a few months ago that 3.50 was too much. He could get hay for 2 bucks. I told him point blank that he couldn't get these bales for 2 bucks... He then proceeded to tell me where he could get 2 dollar hay... and I pointed out that they were 25# bales... and he agreed. Mine were 55 pound bales... I left him to figure out who was the idiot.
I just don't worry about them any more. There's a bunch of scammers around here who play that game to see if you crack... and if you do, they win. Otherwise they pay. There's NO hay around here right now... as in NONE.

Rod
 
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