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Cattle Boards
Grasses, Pastures & Hay
Drought Hay Pricing ?
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<blockquote data-quote="greybeard" data-source="post: 1693542" data-attributes="member: 18945"><p>I've seen that too in 2011. A big hay/cow producer west of Houston had hundreds of rounds in his barn left from 2010 and 2009 and instead of feeding his cows, he sold the cows early in the summer so he could sell the hay at 3x what it had cost him to produce and bale it a couple of years later, then bought back into cows at the end of the sell off and still came out way ahead. Drought ended in 2012 so he was then set up pretty for the upswing in beef replacement heifer prices that followed.</p><p></p><p>$100 4x5 hi density round that weighs 1000lbs or more=$200/ton hay.</p><p>Each momma will eat about a ton every 2 months if that's their only available dry matter.</p><p>How long before the producer is way upside down in just maintenance costs per AU?</p><p>Not long.</p><p>Especially if early winter comes.</p></blockquote><p></p>
[QUOTE="greybeard, post: 1693542, member: 18945"] I've seen that too in 2011. A big hay/cow producer west of Houston had hundreds of rounds in his barn left from 2010 and 2009 and instead of feeding his cows, he sold the cows early in the summer so he could sell the hay at 3x what it had cost him to produce and bale it a couple of years later, then bought back into cows at the end of the sell off and still came out way ahead. Drought ended in 2012 so he was then set up pretty for the upswing in beef replacement heifer prices that followed. $100 4x5 hi density round that weighs 1000lbs or more=$200/ton hay. Each momma will eat about a ton every 2 months if that's their only available dry matter. How long before the producer is way upside down in just maintenance costs per AU? Not long. Especially if early winter comes. [/QUOTE]
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