Alfalfa game?

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LimiMan

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Alright guys, I would like for you guys to help with this. I want to give you guys some numbers and you use you first hand expierence and run them for me and tell me what kind of expenses and income I might be looking at if I decide to put in some Alfalfa.


100 acres of farmground in creek bottom currently in wheat and weed free, the soil is mainly a sandy loam with a pH of 5.5.

Its been out of alfalfa for roughly 10 years with mainly wheat,milo,sudan and peas planted.

Its a well drained 100 acres that has been setup to be used as farmground.

Lets assume the wheat has been cut for hay and we are at the point of starting to work the ground and get the seed bed ready. And lets also assume we get the same kind of rain we had last year here in my area, which was 31.19 inches that is 76% of our normal rainfall. I will hire someone to disc(7.00acre) and chisel(7.50acre) I will do the springtoothing and harrowing.

I have the capability to store and the market for Large Rounds and small squares. The first couple of years I will hire all the Cutting,raking and baling done, which it varies from $15-18 a bale on round bales and the total cost for cutting,raking baling and stacking for small squares is around $30 ton. I want you guys to bale this field however you want to, which ever way you think you can squeeze the most money out of it. There is a strong market for both Rounds and small squares. Rounds per ton/$150
Small squares per ton/$160

I plan on planting Ok49 seed which is about $2.50lb I will do the drilling.

Could you guys breakdown all the cost and include it in a per acre expense, this should include spray,fertilizer,etc...

If you guys have any questions just ask me, It will be interesting to see what kind of numbers the different people with different methods will come up with. Thanks for all the help. ;-)
 
Around here, alfalfa costs about $200 an acre to get it started. I'd expect that number to increase slightly next year due to fertilizer costs, and in your case, the amount of fertilizer you will need to get your ground in shape.

With that said, I'd hate to have 100 acres of alfalfa on the ground at any time, and then have to depend on someone else to cut, rake and bale it. With the amount of rain you get a year, you could very well see 3-4 cuttings per season. We got 6 cuttings this past year, although the last cutting was very thin, as you'd expect.

If it were my ground, I'd plant a mix of orchardgrass and clover on 90 acres and alfalfa on 10 acres.

As far as income goes, that all depends on the demand for your hay. If you have buyers who like it, then you could be set for a good profit. If your area has a good hay year, then you could have a good bit of alfalfa to sell all the way through March. Having alfalfa hay doesn't guarantee you'll be able to sell it. You need customers who PREFER your hay.
 
First thing we'll need is current soil test data, cost of NPK in your area, seed cost in your area. If you know the ph you should have the rest of the soil test data. With a ph 5.5 of you are going to have to raise it to 6.3-6.8 to have top yields.
 
I have the soil test results around here somewhere, I just couldnt find them at the moment, I do remember the pH being 5.5, seed cost is $2.50lb.
 
Have you talked to Michael at the county extension office? He has all the local information for Alfalfa.
 
I talked to him a little when I took my samples down there but I can find alot of the info I need on the net, but I was wanting someone besides me to run the numbers because mine numbers just dont seem right.
 
If you need lime & alot of inputs, buy good seed, and your time is not free, then establishment cost will be close to $300 per acre. So you lose money the first year.

Seeding the entire acreage and then finding good customers year one is a risk. You may want to be a little more gradual.

If there is only a $10 per ton premium for small squares I do not know why you would make them.
 
1ST YEAR

Seed $4268
Lease $5000
Dirt Work $2000
Fertilizer&Pesticide$7700
Herbicide $1700
Machine Repair $2000
Fuel $1000
Square Baler $5000
Swather $10000
Hay Hauling $7735
-------------------------
TOTAL $46,100
AMOUNT BORROWED $36,100
DOWNPAYMENT $10,000
------------------------------
1 YEAR NOTE PAYMENT WITH INTEREST $37,833.72
INCOME FROM 1ST YEAR CROP $48,500.00
-------------------
1ST YEAR PROFIT $10,666.28
 
2ND YEAR


LEASE $5000
RAKE $6000
FRONTEND LOADER$4000
FERTILIZER&SPRAY$3400
WEED CONTROL $1700
MACHINE REPAIR $2000
FUEL $1300
ROUND BALER $15000
TRACTOR $22000
HAY HAULING $1933
-------------------------------
TOTAL $62,333 (this amount borrowed over 3yrs)

NEW NOTE PAYMENT $23,699.16
CROP INCOME $48,500
1ST YEAR CARRYOVER$10,666.28
--------------------------------------------
2ND YEAR NET INCOME AFTER NOTEPAYMENT $35,500.12
 
3RD YEAR

LEASE $5000
FERT&SPRAY $7700
WEED $1700
MACHINE REPAIR $4000
FUEL $1300
HAY HAULING $1933
-----------------------------
OPERATING EXPENSE $21,622
NOTE PAYMENT $ 23,699.12
---------------------------------
TOTAL EXPENSE $45,321.12
---------------------------------
3RD YEAR CROP INCOME $48500
2ND YEAR CARRYOVER $35,500.12
-----------------------------------
TOTAL $84,000.12
TOTAL EXPENSE $45,321.12
-----------------------------------
3RD YEAR NET INCOME $38,679
 
4TH YEAR

LEASE $5000
FERT&SPRAY $3400
WEED SPRAY $1700
MACHINE REAPAIR $4000
FUEL $1300
HAY HAULING $1933
-----------------------------
OPERATING EXPENSE $17,333
NOTE PAYMENT $23,699.12
-------------------------------
TOTAL EXPENSES $41,032.12
-------------------------------
4TH YEAR CROP INCOME $48500
3RD YEAR CARRYOVER $38,679
--------------------------------
GROSS INCOME $87,179
TOTAL EXPENSE $41,032
--------------------------------
NET INCOME 4TH YEAR $46,147
 

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