I have been thinking about doing some custom haying and corn stalks in 5x6 bales. I have talked to some area farmers and everyone says i will stay plenty busy. My question to everyone that is in the custom hay business is, is it worth actually doing? Is it profitable if i stay busy? I would have to buy all the equipment. I know its a loaded question and some years are better then others. Or should i keep my money and RUN! Thanks!
Custom haying
- Thread starter nobull82
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SBMF 2015
Well-known member
First off, can you use the equipment for personal use in your current operation or would you be buying it just to do custom?
Next, ask around. Are there people looking for a custom baler in your area? How many people in your area are already custom baling?
If there are a couple well established custom guys in your area, and their are still people looking for someone to bake you have to ask yourself why.
As far as equipment goes; this is one of those times when cheap is expensive. Round balers can be extremely expensive to repair and maintain. And buying something half wore out will not only cost you $ it will cost you customers when you are broke down and they need hay baled before it rains.
I have my own cattle consulting firm. I used to do a little custom baling. It became to much of a pain. Every one mowes hay at the same time, and wants it baled first.
The other thing I've learned over the years is that the customers who have had things given to them scream bloody murder when you give them the bill, but the guys that have worked to get where they are usually don't think I charge enough.
Good Luck.
Next, ask around. Are there people looking for a custom baler in your area? How many people in your area are already custom baling?
If there are a couple well established custom guys in your area, and their are still people looking for someone to bake you have to ask yourself why.
As far as equipment goes; this is one of those times when cheap is expensive. Round balers can be extremely expensive to repair and maintain. And buying something half wore out will not only cost you $ it will cost you customers when you are broke down and they need hay baled before it rains.
I have my own cattle consulting firm. I used to do a little custom baling. It became to much of a pain. Every one mowes hay at the same time, and wants it baled first.
The other thing I've learned over the years is that the customers who have had things given to them scream bloody murder when you give them the bill, but the guys that have worked to get where they are usually don't think I charge enough.
Good Luck.
nobull82
Well-known member
I would be buying equipment solely for custom work. I am self employed already so i thought this might be a good addition but afraid to spend the money if its a bad idea to get in the custom business.
chevytaHOE5674
Well-known member
I do quite a bit of it. As I grow my cow herd I am looking to do less and less custom baling. It's a tuff business between the weather and equipment. Everybody wants there hay done on X day when the weather is good and your only one guy so there is a limit to what you can do so you have to run ragged and still pi$$ people off. Then it's always a struggle to get my own hay done timely. Baling other people's ground you are bound to mow rocks and fence posts up and tear up a mower, then bale up garbage and tear a baler up. So any bit of "profit" better get saved for when you need a new tractor tire, cutter bar, baler belt, yada yada.
If I wasn't making hay for myself there is NO way I could make the tractors, mower, rake, baler, etc be worth the headache to do other people's hay let along the financials of it all.
If I wasn't making hay for myself there is NO way I could make the tractors, mower, rake, baler, etc be worth the headache to do other people's hay let along the financials of it all.
skeeter swatter
Well-known member
Keeping busy is easy
Getting paid might not be
Getting paid might not be
nobull82
Well-known member
So i understand new or newest equipment is always best. But are you better off buying used equipment and not having any payments or having high payments and not knowing how much work you will get or if you get paid. I kinda figured i could buy decent equipment and upgrade when you build up cliental. Maybe im looking at it wrong. My thoughts were a jd 4430-4440 i even thought of an ih986 or 1086 but thinking shifting would be a major pain. Case 1070 or 2090 but not sure how easy it is to get parts. I even thought of a 1066 open station because of price and put a rops canopy on. I would try to get a jd 566 or 67 baler or perhaps a vermeer M. A disc mower and a v rake to speed the process up to keep fuel prices down. So my figures were tractor $10-$20,000 and same for the baler. Mower up to $7,000 and rake up to $6,000. What are your guys opions on my thoughts? I do have pretty much every type of dealership in a 30min to 45min radius with lots of jd dealers around. Im open to all suggestions on everything.
chevytaHOE5674
Well-known member
So your talking 40-50k in equipment? How much hay can you make with that level of equipment reliably before things will be worn out the rest of the way and need replacing?
Can you make enough money with it to pay yourself a wage, insurance, daily maintaince, saving for unexpected repairs, and also saving for the replacement equipment?
Can you make enough money with it to pay yourself a wage, insurance, daily maintaince, saving for unexpected repairs, and also saving for the replacement equipment?
chevytaHOE5674
Well-known member
There's always opportunity. The trick is doing it and making enough profit to make it worth your time. Anybody can buy equipment and stay busy all day everyday and not make any money at it.
How come if there is such a demand in your area somebody hasn't filled it? Is it because customers aren't willing to pay a reasonable price? Or because there isn't enough volume to make equipment payments viable? Or some other reason?
How come if there is such a demand in your area somebody hasn't filled it? Is it because customers aren't willing to pay a reasonable price? Or because there isn't enough volume to make equipment payments viable? Or some other reason?
chevytaHOE5674
Well-known member
Need to get your sharp pencil and paper out. Start calculating your cost of production to the best of your ability. Start with all the known costs including but not limited to tractors, mower, rake, baler, oil, filters, grease, grease gun, knives, belts, hoses, fuel, twine/net, insurance, etc and add in your wage.
Do some research into gallons/hr fuel consumption of whatever tractor your looking at. Research your acre per hour for whatever mower and rake you want and estimate fuel usage, etc
When you get all of the known costs nailed down to a per hour, per acre, per bale basis add in a buffer for the unexpected costs (like the 1700 rear tire, or 7000 transmission rebuild, 5000 engine rebuild, etc). Add on top of that some saving for machine replacement down the road. When you are comfortable with all those costs you will know the actual cost to produce a bale, and you can set your prices accordingly and see if your customers are still there.
Do some research into gallons/hr fuel consumption of whatever tractor your looking at. Research your acre per hour for whatever mower and rake you want and estimate fuel usage, etc
When you get all of the known costs nailed down to a per hour, per acre, per bale basis add in a buffer for the unexpected costs (like the 1700 rear tire, or 7000 transmission rebuild, 5000 engine rebuild, etc). Add on top of that some saving for machine replacement down the road. When you are comfortable with all those costs you will know the actual cost to produce a bale, and you can set your prices accordingly and see if your customers are still there.
nobull82
Well-known member
Thank you! I needed to hear the non BS about custom work. Seems like everyone tells you its a good idea but dont say why there not doing it and being honest about it. Thanks again for were to start.
chevytaHOE5674
Well-known member
I'm not saying you cant make money at it. Just saying there are a lot of costs and headache associated with it. A lot of the "profits" end up getting reinvested in your equipment.
A guy needs to have his eyes wide open and know when to say no. It took me a while to realize that often times it's better to say no and leave my equipment parked. Taking work that barely covers costs is a loser all the way around.
A guy needs to have his eyes wide open and know when to say no. It took me a while to realize that often times it's better to say no and leave my equipment parked. Taking work that barely covers costs is a loser all the way around.
