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Tractor Talk Discussion Board

Re: Price per Bale of Hay..


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Posted by donjr on February 07, 2013 at 10:13:59 from (72.71.177.201):

In Reply to: Price per Bale of Hay.. posted by mss3020 on February 07, 2013 at 08:21:44:

This subject can be one of the trickiest and widest cost discussions you can get into. The difference in operations, crop, equipment, age and condition and cost, cost of ground, and market all figure into it. A guy farming a neighbors ground for nothing with his grndfathers old baler and equipment who 'mines' the ground can do it for fuel, twine and labor. A real farmer cannot work with junk equipment, and will upgrade the ground for a maximum yield, and make a cost plus profit. Those costs, of course, are also variable. The ground cost and cost of establishing a preferred crop, plus fertilizer changes from year to year. Machinery can be very costly to harvest a premium product, as well as storage for maybe a year to keep it in top quality until sale. And most folks don't have the money just to go out and start from scratch, so interest and depreciation have to be figured in. It's not hard to tie up over $100,000 in hay enterprises, and profits can be trashed with one storm or a drought. And, by the time you pretty much get it paid for, the equipment is getting worn and has to be replaced. So, what it really comes down to, is you reall have to sit down with a pencil and try to figure all of this in. You can be a great neighbor, and feed the area horses for little to nothing if you have a bunch of junk machinery and are desperate for some thing to do on Saturday and Sunday afternoon. But, after you are established, and need to expand the operation into the business it really is and that you really enjoy doing, you find that you can't afford to give hay away and eat at the same time. So, it can be complicated, and costly. I really can't make hay for less than $150 a ton and survive. And I don't try to sell junk full of weeds and thistle and claim it to be good hay. If that's what a customer wants, they'll have to find it somewhere else.


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