Hay shares

[Hillbilly Hayman]

I'm in south central Missouri. I do my own mixed grass hay. The hay I don't need I sell to neighbors. Due to the cost of 2022 fertilizer nearly doubled I'm considering cutting back on fertilizer and selling less hay. One of my neighbor/costumers has offered to bear the rising cost of fertilizer to produce more hay which would benefit both of us. I've never done hay on shares and wonder what would be a fair arrangement?

 

[chaded]

Is it your land?
Who's hay equipment is being used?
Who's doing what as far as the work goes?
Is he paying for 100% of the fertilizer?
What's the field like? Produces a lot? Thin? Average?

 

[Travlr]

I'm in south central Missouri. I do my own mixed grass hay. The hay I don't need I sell to neighbors. Due to the cost of 2022 fertilizer nearly doubled I'm considering cutting back on fertilizer and selling less hay. One of my neighbor/costumers has offered to bear the rising cost of fertilizer to produce more hay which would benefit both of us. I've never done hay on shares and wonder what would be a fair arrangement?

I've never owned haying equipment. Always found someone wanting to cut and bale for a 50/50 split. It's always worked for me and the guys that have done the haying have always come back to hay the next year so I guess it worked fine for them.
There's another thread here talking about the high cost of fertilizer and discussing how to use your cows to spread their own manure. It has some great comments so you might want to check it out.

letting cattle do the fertilizing ???

What we have done the past two years was put the cattle herd in a "sacrifice" lot sometime starting in September and feed hay all fall till after the first killing frost or two. Then we start rotating on stockpiled fescue for all/most of winter into early spring. Took the hubbs just one year to...

www.cattletoday.com

 

[farmerjan]

Here we do 2/3 to 1/3 if we do the fertilizing, and all the hay equipment is ours and we do the work. Sometimes 3/4 to 1/4th (for the owners). That is on rented places. We do not do any deals on land we own. Any that we make on our land is normally first cutting for us, rolled; and 2nd cutting on good fields is sq baled and alot is sold. We are going to cut some fertilizer this year on some of the pastures that we have been improving... and any of the land we make hay on just to get the hay. Since we use alot of litter, we are still getting the same amount but it has gone up about $5/ton delivered I think son said. Maybe $8/ton. So in the $35-40 ton now. We are planning to cut our corn from about 20 acres to 10 acres this year. We do corn in rotation to renovate some of the orchard grass hayfields when they get weedy or johnson grass gets into them. Might put in some roundup ready alfalfa to help kill off the johnson grass in the one field and get some decent hay .... corn is going to just cost way too much this year.

 

[sstterry]

Here we do 2/3 to 1/3 if we do the fertilizing, and all the hay equipment is ours and we do the work.

That is the common deal around here, 1/2 and 1/2 if the owner of the land pays for the fertilizer.

 

[Stocker Steve]

We do corn in rotation to renovate some of the orchard grass hayfields when they get weedy or johnson grass gets into them.

What do you seed with the OG?

How long do the OG stands last?

 

[kentuckyguy]

I'm going to be honest and say I'm not sure 50/50 is worth it. Last year I had my first adventure cutting around 45 acres on 50/50 for a neighbor.

Don't get me wrong it gave me a lot of nice hay but also puts lots of wear and tear on equipment that costs a fortune. Then you figure the diesel fuel and twine and you are into it pretty good for your 50%

 

[Travlr]

I'm going to be honest and say I'm not sure 50/50 is worth it. Last year I had my first adventure cutting around 45 acres on 50/50 for a neighbor.

Don't get me wrong it gave me a lot of nice hay but also puts lots of wear and tear on equipment that costs a fortune. Then you figure the diesel fuel and twine and you are into it pretty good for your 50%

On the other hand the land owner has their own costs. Hay from land you aren't paying for or maintaining, fertilizing, planting, fencing, etc, has some value, perhaps more than hay from your own property.

 

[chaded]

I'm going to be honest and say I'm not sure 50/50 is worth it. Last year I had my first adventure cutting around 45 acres on 50/50 for a neighbor.

Don't get me wrong it gave me a lot of nice hay but also puts lots of wear and tear on equipment that costs a fortune. Then you figure the diesel fuel and twine and you are into it pretty good for your 50%

What would 45 acres cost you to go buy and pay taxes on and keep up, etc.?

 

[kentuckyguy]

I agree I just figure I'm into my half of the bales $20 a piece if I consider equipment wear.

 

[chaded]

Before fertilizer went up I was at $22 a bale after figuring for fertilizing the whole field but only getting half. That is no other cost but it's cheaper then buying hay elsewhere. The truth is that most of the time neither party is happy doing hay on shares but its sometimes the best option.

 

[kentuckyguy]

What would 45 acres cost you to go buy and pay taxes on and keep up, etc.?

Your looking at it wrong. Im just trying to make the point that free hay isn't free.

And you have to value your time at some point.

 

[chaded]

Your looking at it wrong. Im just trying to make the point that free hay isn't free.

And you have to value your time at some point.

Your right, it isn't. Neither is land and the time spent to make money in order to purchase it and pay taxes. Mine wasn't given to me just like your equipment probably wasn't.

 

[Rafter S]

Forty years ago when my father and his buddy were in the custom hay business they baled a lot of hay for half. Then it went to 60/40. Now, with so much of the surrounding country broken up into smaller places, and the landowners wanting hay cut just to keep their ag exemption, you can't always find someone to cut it if you give them all the hay.

 

[bbwyo]

I'm going to be honest and say I'm not sure 50/50 is worth it. Last year I had my first adventure cutting around 45 acres on 50/50 for a neighbor.

Don't get me wrong it gave me a lot of nice hay but also puts lots of wear and tear on equipment that costs a fortune. Then you figure the diesel fuel and twine and you are into it pretty good for your 50%

I have always had to do a 40/60 share to have my hay put up.. and always felt my good neighbor lost money helping me out.

 

[farmerjan]

We seed the Orchard grass straight. Horse hay customers do not want anything else in it... no clover or even alfalfa. We do spray for sand briers though, they are a real menace

 

[tom4018]

I do about 10 acres on a friends farm. He fertilizes, mows and rakes it. I usually ted it if needed. I bale, he moves most of it and loads on my trailer. We do market value on the hay less the charge for baling. It has worked for us for 7-8 years, this year mat test that with fertilizer prices.