Posted by oldtanker on July 17, 2018 at 06:31:38 from (66.228.255.59):
In Reply to: cost to make hay posted by cjunrau on July 15, 2018 at 07:09:58:
Interesting read.
OK for those who say it doesn't matter what it cost? WOW. Good thing you are farming. In business you wouldn't survive. You can bet everything you buy for yourself, your home, your family and your farm NEW the companies that provide those things know to a fraction of a cent what they cost. They stores that carry those items (at least the bigger stores) again know exactly what that item cost going out the door. That is part of how they decide which items to make/carry and which items to discontinue. IT's how they stay profitable.
For those who don't think fuel consumption is important? When you take into account how much it cost per acre to produce a crop you have to include tillage cost including machinery depreciation and fuel including harvesting and storage if you are going to really have a really good picture of how profitable each crop is. If you are feeding it to livestock you have to go with going prices in your area. Years ago my dad was great at record keeping. He discovered that when all the cost were added in except labor (he never added labor in because he did it himself), that he could buy bulk feed for his dairy cows cheaper than he could grow it and make it himself. He planted everything into hay and oats (for the straw). No he did not increase his herd but he had hay to sell every year too. Now I know that won't work out for everyone every time. But it is an example of how record keeping can show you if it's profitable to keep doing what you are doing or if you should look at other things.
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