I'm hoping to get a little input / perspective on the topic of hay equipment ownership vs hiring out or grazing that I've read several posts about but would like to get thoughts on this particular scenario. I've owned my own equipment for about 10 years now. I started with very basic old worn out equipment and have steadily worked up to better machinery but not new by any means. I had been doing custom work for people in the area the last few years but have quit that as of this season due to rising costs and just the general aggravation of it. Currently I am haying roughly 66 acres. 60 of which are irrigated. I typically bale up around 500-600 4x5s a season for myself and around 120 for my Dad on his property. I like to keep around 250 bales for my feeding purposes each year (35 cattle and a few goats). Most of the equipment is old - some older than others but I do have a small Ferguson tractor dedicated to raking, a Case 5240 running a JD469 round baler, a self propelled Challenger SP165 to cut and an old Ford industrial skip loader that moves the bales around.
Between fertilizer, equipment cost etc I figure I have around $45-$50 in a round bale the way things are going. In a non drought year there is hay to be had in the neighborhood of those prices usually. Repairs and maintenance are starting to become a frustration averaging $4000-$5000 per year over the last 5 years with me doing as much of the mechanic work as I am able to do. I'm on the fence about whether or not having the equipment is worth it or not - what I figure I have in each bale is just right there at the point where it doesn't seem to clear to me if it is better one way or the other. Would a person be better off adding more cattle and grazing the irrigated grass a big portion of the season and maybe just hiring someone to custom bale 1 cutting to account for most of the winter needs and parting ways with the equipment?
Right now I believe the equipment would bring pretty close to what I originally was able to purchase it for so I don't think I would take a hit for the most part on resale. The idea of eliminating several of those items and replacing them with 1 newer tractor with a good AC and comfortable cab to just move hay with is appealing. In the end though it is about the bottom line and right now it just seems like the best case scenario you can hope for is to break even if you can avoid a major mechanical breakdown.
Between fertilizer, equipment cost etc I figure I have around $45-$50 in a round bale the way things are going. In a non drought year there is hay to be had in the neighborhood of those prices usually. Repairs and maintenance are starting to become a frustration averaging $4000-$5000 per year over the last 5 years with me doing as much of the mechanic work as I am able to do. I'm on the fence about whether or not having the equipment is worth it or not - what I figure I have in each bale is just right there at the point where it doesn't seem to clear to me if it is better one way or the other. Would a person be better off adding more cattle and grazing the irrigated grass a big portion of the season and maybe just hiring someone to custom bale 1 cutting to account for most of the winter needs and parting ways with the equipment?
Right now I believe the equipment would bring pretty close to what I originally was able to purchase it for so I don't think I would take a hit for the most part on resale. The idea of eliminating several of those items and replacing them with 1 newer tractor with a good AC and comfortable cab to just move hay with is appealing. In the end though it is about the bottom line and right now it just seems like the best case scenario you can hope for is to break even if you can avoid a major mechanical breakdown.