Hay Gouging?

[MikeC]

I have seen this term used many times on here.

If a cattleman buys hay voluntarily at what some deem to be an unreasonable price, how can this be considered gouging?

We have a unique situation here in that the Water Board raises hay on sludge fertilized land and sells the hay for less than market value.

Everyone who buys hay always bring their (Water Board) price up when negotiating hay prices even though none is available now.

In essence they have created an "Under Priced" hay market here and it's hard for individuals to get the real value for hay.

If we ask more for hay than the publicly assisted Water Board, we are accused of gouging.

 

[TomW]

Mike I have decided this year I am going to charge what I think is a fair profit. If folks don't want to pay that price thats fine. A big reason prices can be low is that some growers are afraid to say no. If everyone raises price this year to make up for our additional costs (fuel fertilizer twine etc) we would all be OK , but alas, there are guys out there selling for the same price as last year. I'll just keep it in the barn and maybe a bit later in the year when things get scarce I may get my price (along with a storage charge). If price contimues to be a problem I will buy more cows.

Quick story - a old women went to her butcher to buy a chicken - he told her it was 49 cents per pound. The old lady asked for two chickens and the butcher told her they were out of them. Well the old lady went down the street to the next butcher shop and asked how much for chicken? Butcher told her 62 cents a pound. The old lady was furious " the fellow down the road has his price at 49 cents a pound" "well" the buthcer said why don't you buy from him?" He is out of them the women replied - "Well mine are only 39 cents a pound when I am out of them" was the reply.


good luck
tom

 

[MikeC]

Good post Tom.

I think one of the problems with hay is that most guys who sell a few extra bales every year really have no idea how much they have in it.

When these guys tell someone they get $XX dollars for it, and the buyer goes to an informed person, who happens to charge more, gives them a higher price.......he is the one gouging.

Another thing that gets me is some guys will base my price for hay that is barn kept, against hay that has been outside all year. :roll:

 

[backhoeboogie]

Good post Tom.

I think one of the problems with hay is that most guys who sell a few extra bales every year really have no idea how much they have in it.

$32 a bale for me. That is lease, fertilizer, and baling cost for coastal. It has a little weed in it but no Johnson grass. Also has a touch of Hubam clover that folks think is weed.

Trouble is there is more fresh hay in this county right now than I have ever seen in my life time.

Folks are buying "weed free" hay up the road from me, that has more weed than my hay has, it is small bales, and they are paying more for it. They are going to be in for a shock when they see what is in the core of some of those bales. All in due time. Everything always works out for the best. Honesty is the best policy.

 

[bigbull338]

people will pay what they feel they can afford for hay.an if theres a drought like there has been.the hay prices triple an go out of sight.if i sale hay i wont goug no 1.i set a price if they wont itgrat if not thats ok to.take this yr sold 80 bales standing in the field for $6 a bale.so that guy has 80 bales an $22 a bale in the hay.then i sold close to 100 bales for $32 a bale in the field.now i sure dont think thats gouging at all.

 

[alabama]

Good hay if you can find it in my area is going for $60 a roll on a 4 X 6 roll.

 

[bigbull338]

Good hay if you can find it in my area is going for $60 a roll on a 4 X 6 roll.

the truth is hay gouging is affected by the supply an demand.i hope you dont see round bales going for $100 a bale or more in your drought.we seen those prices an more in our drought here in texas.

 

[Outrigger2]

i am afraid $60/roll in the SE might be cheap.

 

[alabama]

i am afraid $60/roll in the SE might be cheap.

I think you are right.

 

[backhoeboogie]

Good hay if you can find it in my area is going for $60 a roll on a 4 X 6 roll.

the truth is hay gouging is affected by the supply an demand.i hope you dont see round bales going for $100 a bale or more in your drought.we seen those prices an more in our drought here in texas.

Worst price I saw was $150 and there were few takers. They sold some at that price to desperate people.

 

[backhoeboogie]

i am afraid $60/roll in the SE might be cheap.

I think you are right.

What would it cost to truck it that far?

 

[alabama]

I ran the numbers on getting some out of Texas and it was about $75 a roll.

 

[MikeC]

I ran the numbers on getting some out of Texas and it was about $75 a roll.

Including trucking?

 

[backhoeboogie]

I ran the numbers on getting some out of Texas and it was about $75 a roll.

Including trucking?

I couldn't come out at $75. It would be roughly $54 a bale to haul it to Mobile at $4 a mile trucking cost.

 

[Chris H]

A friend was offered $200/roll for large round bales. He let us have the first option to buy at that price but we passed on the offer. We'll find stalks, gluten, and whatever else we can find to feed cheaper than that. He's also going to sell down some cows, feed gluten, and make some money on his hay.

Is 200/roll gouging? Nope, he normally doesn't sell hay and he had two people(not us) get in a bidding war over it. He's supplying a demand. The shame is the hay is going to feed 'pets', horses; and some good cows will be slaughtered, removing them from producing future beef for humans.

 

[C HOLLAND]

Good hay if you can find it in my area is going for $60 a roll on a 4 X 6 roll.

the truth is hay gouging is affected by the supply an demand.i hope you dont see round bales going for $100 a bale or more in your drought.we seen those prices an more in our drought here in texas.

Worst price I saw was $150 and there were few takers. They sold some at that price to desperate people.

I will not keep any cows for that price, I like my hard earned money to much.

I read an add in the Sunday paper for $100/ton for coastal.

I am guessing that would be 2 5x5 rolls

 

[alabama]

I ran the numbers on getting some out of Texas and it was about $75 a roll.

Including trucking?

The one I worked up was 634 miles and the trucking rate was $1.50 per haul mile.
the rolls were 4 x 5 and delivered price was $80 per roll .
I went back and looked it up.

 

[WORANCH]

A friend was offered $200/roll for large round bales. He let us have the first option to buy at that price but we passed on the offer. We'll find stalks, gluten, and whatever else we can find to feed cheaper than that. He's also going to sell down some cows, feed gluten, and make some money on his hay.

Is 200/roll gouging? Nope, he normally doesn't sell hay and he had two people(not us) get in a bidding war over it. He's supplying a demand. The shame is the hay is going to feed 'pets', horses; and some good cows will be slaughtered, removing them from producing future beef for humans.

At 200 a roll I would sell my cows . I have 29 a roll in my hay .

If I don't have enough to make the winter I will cull some cows ..

 

[backhoeboogie]

This year there is no irrigation cost and I have $32 a roll invested. There was a time when I also had over $30 a roll in irrigation expense. People whined about my prices then. I suppose they expected me to take a loss. I sold it all. Some of the whiners came back but it was too late. It was some of those same whiners who paid $150 a roll.

You'd think they'd stock up right now. They are not. I had one guy tell me, "I hope it goes to $5 a roll". I rolled laughing. He is reverse gouging. I won't pay for baling it.

Got one who can't pay and wants to trade cattle for hay. Think I am going to do that since I have so much grazing. He's a good ole man.

 

[WORANCH]

This year there is no irrigation cost and I have $32 a roll invested. There was a time when I also had over $30 a roll in irrigation expense. People whined about my prices then. I suppose they expected me to take a loss. I sold it all. Some of the whiners came back but it was too late. It was some of those same whiners who paid $150 a roll.

You'd think they'd stock up right now. They are not. I had one guy tell me, "I hope it goes to $5 a roll". I rolled laughing. He is reverse gouging. I won't pay for baling it.

Got one who can't pay and wants to trade cattle for hay. Think I am going to do that since I have so much grazing. He's a good ole man.

If you can sell hay for 100 a roll thats great everyone has to make a profit and I know the cost has gone way up the last two years .
But if I ever have to buy hay I would cull before I pay that much for hay .