Fair profit on selling hay

[johndeerefarmer]

What would a fair profit be on selling hay (round bales)? I am considering baling most of my coastal next year and selling it rather than run cows on it. I own my own equipment.
I make 4 x5 round bales.
I can calculate fertilizer and land costs but am not sure how to calculate equipment costs. Most around here are charging around $15 to cut,rake, and bale.

I am not looking to gouge my neighbors like some do in difficult times (like this drought) situation. I am looking to make a fair profit though as I always spray for weeds, fertilize heavy and try to cut it at the optimal 4-5 week time frame. My protien is usually 12-14%

So I guess I am asking, if you sell hay what profit can you make per bale? Or per acre?

Thanks

 

[Running Arrow Bill]

Calculating equipment costs: difficult.

Can estimate costs via cost of new equipment, depreciation $$ amount & life, yearly repairs, fuel costs per acre or per bale, etc., etc.

Or, can take "average" price of other customer balers and use that as your "equipment/fuel/operator" costs.

Other possibility: price your hay what others are pricing theirs for based on same size bales, same quality, etc. Then, hope you end up making a profit (excluding the value of your labor, etc.).

 

[Herefordcross]

That's a tough one. Other than figureing up every detail, I would see what they're getting for junk hay as well as the best hay and determine what yours stands at in between and price it accordingly.

 

[Campground Cattle]

What would a fair profit be on selling hay (round bales)? I am considering baling most of my coastal next year and selling it rather than run cows on it. I own my own equipment.
I make 4 x5 round bales.
I can calculate fertilizer and land costs but am not sure how to calculate equipment costs. Most around here are charging around $15 to cut,rake, and bale.

I am not looking to gouge my neighbors like some do in difficult times (like this drought) situation. I am looking to make a fair profit though as I always spray for weeds, fertilize heavy and try to cut it at the optimal 4-5 week time frame. My protien is usually 12-14%

So I guess I am asking, if you sell hay what profit can you make per bale? Or per acre?

Thanks

Thats cheap. It's twenty dollars a bale with a twenty roll minimum here. Your field cut out fifteen you pay for twenty.

 

[backhoeboogie]

I think it is best to just sell it for market prices. No one gets their feelings hurt. You don't have to gouge. There are plenty of folks willing to pay the going rate. Their reward is knowing what they are getting.

What if you were buying coastal from 100 miles away? Wouldn't you rather pay the same price to get it from someone you know and trust?

 

[johndeerefarmer]

My hay is worth more than most.

I actually spray mine for weeds, fertilize properly (400 lbs of 23-7-14) per cutting and have it analyzed. I usually average 12-14% protein.

I do not want to sell it for what everyone else is selling their's for. Most people around here think that " if its green, its got to be good". They don't have a clue about proper fertilization,
timing of cutting, etc.
Heck around here, they let it grow until its 3 months old and then bale it. Most go for quantity NOT quality.
People bale Johnson Grass that is 6' tall, or they bale the roadsides and fields of weeds (and I don't mean just during the last two dry years )

I would rather grow quality hay and feed it to my cows than buy junk hay and have to buy range cubes for $200 ton to supplement them. I get to use most of the fertilizer twice. Once on the hay fields and once after the cows eat it and distribute it back on to my fields..

 

[Wewild]

I actually spray mine for weeds, fertilize properly (400 lbs of 23-7-14) per cutting and have it analyzed. I usually average 12-14% protein.

We don't. We throw chicken be nice on it and nature does the rest ... until we cut it,

 

[hayray]

What would a fair profit be on selling hay (round bales)? I am considering baling most of my coastal next year and selling it rather than run cows on it. I own my own equipment.
I make 4 x5 round bales.
I can calculate fertilizer and land costs but am not sure how to calculate equipment costs. Most around here are charging around $15 to cut,rake, and bale.

I am not looking to gouge my neighbors like some do in difficult times (like this drought) situation. I am looking to make a fair profit though as I always spray for weeds, fertilize heavy and try to cut it at the optimal 4-5 week time frame. My protien is usually 12-14%

So I guess I am asking, if you sell hay what profit can you make per bale? Or per acre?

Thanks

Generally it costs $80 per ton to produce alfalfa hay. What you have is probably cheaper to produce but I do a lot of custom work and need to make at least $125 per acre regardless of yield, small squares, or rounds.

 

[hayray]

What would a fair profit be on selling hay (round bales)? I am considering baling most of my coastal next year and selling it rather than run cows on it. I own my own equipment.
I make 4 x5 round bales.
I can calculate fertilizer and land costs but am not sure how to calculate equipment costs. Most around here are charging around $15 to cut,rake, and bale.

I am not looking to gouge my neighbors like some do in difficult times (like this drought) situation. I am looking to make a fair profit though as I always spray for weeds, fertilize heavy and try to cut it at the optimal 4-5 week time frame. My protien is usually 12-14%

So I guess I am asking, if you sell hay what profit can you make per bale? Or per acre?

Thanks

Thats cheap. It's twenty dollars a bale with a twenty roll minimum here. Your field cut out fifteen you pay for twenty.

yeah, that is pretty cheap. The fastest way to broke farming is to sell at market price. He needs to figure out how much money he needs to make to have a good enough profit.

 

[Family Tradition]

Last year we could pay 15 to 20 for round bales but we have watched so much of it go south to Texas the last 2 summers that I'm having to haul hay 100 miles this year and glad to get it for 30. It's the first time I've ever had to buy the old home place has always provided. Where ever thier getting enough rain to grow anything thier baling it and selling it to go south and the balers are pulling every trick in the book to produce one more bale for sale. Selling junk hay to excellant hay from 35 to 50 a bale

 

[Running Arrow Bill]

Hay prices?

Try $85 to $125 a bale for weed free, fertilized, 5x6 round bales (~1500# bales) of bermuda in our part of country. No one will quote price on "the next" cutting. Take it or leave...

We've found that #1 quality bermuda (also suitable for horses) is best way to go for cattle or horses. Better the quality of hay, less you have to supplement with protein tubs and/or range cubes to get protein where it should be. Also, hay that is not weed free will generally re-seed it's weeds as it passes thru the animal's gut and back into your pasture.

Bottomline...costs no more (in long run) to go first class if you can find it...

 

[Jogeephus]

Sounds like you grow what I call "feed quality hay". This is what I try to grow and - if I sold any - I would not take less than $35 per roll picked up in the field. My costs are $28 per roll. I think $7 a roll for my time would be fair.

My cows can overwinter on this without any supplementation. You best not stand to close to them when they are making pies. Remember - "its what splatters that matters".

 

[msscamp]

I think it is best to just sell it for market prices.

I don't know about your area, but anyone pricing hay very much above the 'market' price here doesn't sell much, unless he/she has a stellar reputation. I agree that there is no need for price gouging, especially in difficult times.

 

[Stepper]

johndeerfarmer,

Something that you might want to take into consideration before determineing what kind of profit you are going to make off of your hay this time next year is supply and demand.

It has always been kind of the norm if we have ideal growing conditions and hay is plentiful. Hay is cheap. So even if you have a good quality hay and have a good haying season. You will probably have alot of competion. And the price of hay will probably stay down. Because alot of people dont like to hang onto it for much more than a couple of years due to it getting old. Which i figure you already know all of this.

I guess what i am tring to point out is you may get more tied up in spraying, fertilizing, bailing etc...., than the expected profit if it turns out to be a good or even average year producing hay. Even on a good quality hay. Because like so many has pointed out. Alot of farmers has the out look if it is green it is good hay and dont worry to much about TDN and things like that. And the less they have to put into feeding their cattle the more they can put back into their pockets.

I have herd alot of people talking about how they are getting geared up where they can haul that hay down to Texas next summer and get these high prices for their hay. What they are not thinking about is Texas wont always be in a drought and will not have to pay thoes high prices for hay because they will be able to bale their own.

This is just my 2cents for what ever it is worth.

 

[auctionboy]

I actually spray mine for weeds, fertilize properly (400 lbs of 23-7-14) per cutting and have it analyzed. I usually average 12-14% protein.

We don't. We throw chicken be nice on it and nature does the rest ... until we cut it,

Do this hay get fed to cattle? Do you worry about chicken crap giving them certain diseases?

 

[GMN]

We buy from a gentleman who puts hay up and sells. he sells at market value for the area, yet his hay is great quality, super big bales, all different varieties. His fescue goes for $25 a bale, his straight orchardgrass goes for $35 a bale, his orchard/fescue mix goes for $30 a bale, straight alfalfa goes for $40 a bale. He sprays his alfalfa, gets several cuttings. His bales weigh 1200 plus pounds, get alot of feed for the price.

GMN

 

[Stepper]

auctionboy,

Using chicken/turkey litter as a fertlizer has been a long time common practice here and even the county extension agent reccomends its use. At one time a lot of farmers fed chicken/turkey liter to their cattle but they no longer do that anymore.

I seen a place last summer where they pumped the waste ponds from a large city sewer plant into honey due wagons and spread human manuer/waste onto a big pasture.

I even seen them do it on bottom land where they grow row crops, corn, soybeans, wheat etc......, I did not think myself that was a good idea to do that but they did. You could see condoms, female products and other such items on the feilds after it had been spread.

But myself i dont see nothing wrong with using chicken/turkey litter as a fertlizer. It does a good job and helps build up the soil. That is just my 2cents worth.

 

[auctionboy]

I will be washing my vegetables for now on.

 

[Jogeephus]

I actually spray mine for weeds, fertilize properly (400 lbs of 23-7-14) per cutting and have it analyzed. I usually average 12-14% protein.

We don't. We throw chicken be nice on it and nature does the rest ... until we cut it,

Do this hay get fed to cattle? Do you worry about chicken crap giving them certain diseases?

Chikin litter is excellent fertilizer. I applaud everyone in our area who is constructing chicken houses. Bought some this year for $4 per ton. I put out 2 tons per acre and ended up with 60 lbs of N and all the P and K I needed.

But you know, I stinks like ... well it smells like what it is. ;-)