Posted by Negligence on September 11, 2009 at 07:03:01 from (198.103.152.52):
In Reply to: Hay Profit posted by Ross Johnson on September 10, 2009 at 21:39:50:
Two biggest factors for you are location and quality. Location because you need buyers, and quality because you don't want to be making cattle hay (it's a loss) and you need good hay to outsell the guys around you.
But -- you won't break even with having to pay rent, pay for new baler, tractors, fuel, supplies, and so forth on 95 acres. You really have to scale up in land size before you start seeing more money in your pocket, and of course, that means you have to sell a lot of hay.
Here one way to look at it: the money you make from the 95 acres will pay for your equipment costs, and any extra acreage will start to pay for your labour costs (that's where the money is for you). The more land you can cover equals more money in your pocket as long as you've got buyers lined up.
It costs me about $15/round bale to produce. Most of my equipment was bought before so I don't include those "sunk" costs, otherwise my price per bale would be upwards of $20-25. Good crop here sells for around $30-35/bale, not leaving much pocket change even for premium hay.
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