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Cattle Boards
Grasses, Pastures & Hay
Cost to produce square bale hay
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<blockquote data-quote="Running Arrow Bill" data-source="post: 844611" data-attributes="member: 9"><p>Welcome to the Board!</p><p></p><p>There are 2 types of costs: (a) Direct Costs [fuel, fertilizer, water, twine, etc.] and (b) Indirect Costs [depreciation, advertising, etc.].</p><p></p><p>For Direct Costs, compute the actual costs of the fuel & fertilizer, water use, twine, etc. for any given hay crop. These are variable costs dependent on fuel, fertilizer, etc. prices. Another direct cost would be the "value" of the equipment you are using: e.g., your proration for the "rent" you are paying yourself for its use. If you hire any labor to help produce the hay, the labor costs would be added as direct costs.</p><p></p><p>After all of these "costs" are added up, divide the number of bales you produce into that cost. That is your "break even" cost. Then, add a "profit" item to arrive at a "selling price" for your hay.</p><p></p><p>Hope this helps a little!</p><p></p><p>Bill</p></blockquote><p></p>
[QUOTE="Running Arrow Bill, post: 844611, member: 9"] Welcome to the Board! There are 2 types of costs: (a) Direct Costs [fuel, fertilizer, water, twine, etc.] and (b) Indirect Costs [depreciation, advertising, etc.]. For Direct Costs, compute the actual costs of the fuel & fertilizer, water use, twine, etc. for any given hay crop. These are variable costs dependent on fuel, fertilizer, etc. prices. Another direct cost would be the "value" of the equipment you are using: e.g., your proration for the "rent" you are paying yourself for its use. If you hire any labor to help produce the hay, the labor costs would be added as direct costs. After all of these "costs" are added up, divide the number of bales you produce into that cost. That is your "break even" cost. Then, add a "profit" item to arrive at a "selling price" for your hay. Hope this helps a little! Bill [/QUOTE]
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Cost to produce square bale hay
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