Re: Re: Re: farm coming out of CRP

Posted by kyhayman on August 10, 2003 at 18:53:50 from (205.188.209.105):

In Reply to: Re: Re: farm coming out of CRP posted by Brian on August 10, 2003 at 14:58:01:

Most of the land in the US is farmed by people other than the owners. I managed to pay for mine farming it but it hasn't been easy. The key was that I had a 'day job' to live off of. That and lots of careful marketing.

In my experience being adaptable is the key to the hay business. In the early 80's when I started farming (I was in high school) I did custom work. Made real money rolling hay. Now I only sell rolled hay to a few regular customers. Best I can get for an outside stored roll is $15. Inside for $30. It costs me that to make it. In fact I could buy rolls cheaper. Difference is I am in the "square bale business" and sometimes the weatherman lies. Squares have been good to me. I put up 10,000 a year or so. My gross in a temperate area is $400-$500 per acre (4-5 tons at $100/ton FOB). Net is about a 1/3 of that. It is capital intensive. Takes everything a stand makes the first 2 years to cover the establishment cost and harvest cost. I'm putting 20 acres back to alfalfa after 8 years. Figure it will cost $150 an acre and by the time I rotate out a year and only get 2 cuttings the next year it will be 5 years before that field makes any money.

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