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Hay gouging
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<blockquote data-quote="Jogeephus" data-source="post: 464768" data-attributes="member: 4362"><p>No Diesel, my comment wasn't directed at anyone on the board just at my view of a situation as I see it in my area and as I think Alan sees it in his. The creation of an artificial shortage is in my opinion wrong. I used to buy my hay. In the good years, the producers could just drop it off at my place at their convience and they would get payment within three days of delivery. They could even use my equipment to unload it. My order was placed in March and a price was agreed upon. When fuel went down and fertilizer went down, I still paid the agreed upon price. However, when a whiff of a drought hit our area and the peanuts didn't make, the price of hay increased and the producers "did not fill the order" yet they were advertising hay for sell at $10-15 above what we had earlier agreed. This cost me some money that year and also due to the poor nutrition value of the hay I could find, my calving rate dropped to 70% the next year so the effects last two years. </p><p></p><p>I vowed this was not going to happen again. Other than my reliance on fuel and fertilizer - and rain - I am self sufficient and know what the costs of hay production are in my area. These same producers are saying they have $50/roll in their hay due to this years drought. :shock: They are sitting on their hay waiting for someone to bite. But as Alan pointed out and hopes, they may just have a bunch hay to eat themselves since everyone made a bunch of peanuts. Another thing that these producers aren't figuring is with a shortage - even if man-made, prices should go up. With higher prices, more people will try to produce hay to meet the demand. So indirectly, these guys have just created more competition for themselves and as you know with competition - prices go down.</p><p></p><p>There is an old saying here that I think applies to my areas situation, "pigs get fat and hogs get slaughtered". I think the boys I'm thinking of are fixing to get slaughtered cause we now have five new contract hay producers in our area when in pre-drought we only had two.</p></blockquote><p></p>
[QUOTE="Jogeephus, post: 464768, member: 4362"] No Diesel, my comment wasn't directed at anyone on the board just at my view of a situation as I see it in my area and as I think Alan sees it in his. The creation of an artificial shortage is in my opinion wrong. I used to buy my hay. In the good years, the producers could just drop it off at my place at their convience and they would get payment within three days of delivery. They could even use my equipment to unload it. My order was placed in March and a price was agreed upon. When fuel went down and fertilizer went down, I still paid the agreed upon price. However, when a whiff of a drought hit our area and the peanuts didn't make, the price of hay increased and the producers "did not fill the order" yet they were advertising hay for sell at $10-15 above what we had earlier agreed. This cost me some money that year and also due to the poor nutrition value of the hay I could find, my calving rate dropped to 70% the next year so the effects last two years. I vowed this was not going to happen again. Other than my reliance on fuel and fertilizer - and rain - I am self sufficient and know what the costs of hay production are in my area. These same producers are saying they have $50/roll in their hay due to this years drought. :shock: They are sitting on their hay waiting for someone to bite. But as Alan pointed out and hopes, they may just have a bunch hay to eat themselves since everyone made a bunch of peanuts. Another thing that these producers aren't figuring is with a shortage - even if man-made, prices should go up. With higher prices, more people will try to produce hay to meet the demand. So indirectly, these guys have just created more competition for themselves and as you know with competition - prices go down. There is an old saying here that I think applies to my areas situation, "pigs get fat and hogs get slaughtered". I think the boys I'm thinking of are fixing to get slaughtered cause we now have five new contract hay producers in our area when in pre-drought we only had two. [/QUOTE]
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