Hay Prices

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Our vet has been buying prairie hay from the same outfit in KS for years. This year they told him they won;t have any for him, BUT if they could find some it would run twice what he paid last year. I just hope they have a real good buyer for future years because the vet ain;t buying anymore from them. He only gets 2 semi loads a year of big squares so I guess he isn;t all that important to them.
 
Thanks for the comments, guys, I was hoping i wasn't off-base by feeling a bit slighted. My thoughts are, just get me through this winter and come next year I'm going to do some comparative shopping. I couldn't believe in one breath he told me he "might have one more load for me" and then said in the next breath that he was taking another load to Texas. I do business with people that treat me far better, for far less money.

When I had trouble getting him to call me back, I was griping to a buddy who buys from the same guy. He got a good laugh and said... "your mistake is that you're paying him, he's got no reason to keep in touch"... He said he holds out on the guy and hears from him all the time (as he's worried about his money)... Somehow that dont seem right either...
 
To start off I probably need to drink more coffee before posting. But here goes anyway.
What have we learned from all this for the future? Things like maybe I should have gone ahead and built that barn so I could stock hay for at least one year in advance? Or maybe stockpiled forage isn't such a bad idea after all? Maybe your stocking rate should not have been the maximum during the entire year? And what happens elsewhere may eventually have an effect on yourself, so culling should have been done so only feeding expensive hay would be reserved for the best stock? Or making my own hay, with reduced stocking rate, seems to be a little more economically feasible now?
Or the one I like the best. This is great, my tax right off will be better than it's ever been? :lol2:
Is anybody going to do anything different from now on? I know a lot of people down my way are going to be changing management practices. That is if they ever get back into it or can survive until this is over.
OK I'm going up to the corner store and getting another cup now.
 
Well, lets go back in time...
Did the people in Texas have a crystal ball? Did I?.. no.
I made arrangements WAY IN ADVANCE for my winter hay needs because I
1. cannot build another barn JUST for hay. My main source of income is construction, not corn.
2. refuse to cull good cattle that I have spent time investing in the best genetics I could afford because of a catasrophe in another part of the country.
3. am forced to SELL good cattle that I would have preferred to RETAIN all because crop land is at such a premium that all available pasture is being turned into corn & soybeans!
It has actually be suggested all year long that northern producers hold their cattle due to the mass numbers being culled in the south.
I forgive you... make sure your coffee is loaded... I think you had decaf last time... (truthfully, I AM very sorry for the hard time you all are having there.)
 
Nobody has a crystal ball or could be totally prepared for the total lack of rain we have experienced. Those that stocked to the max and refused to sell some stock as the grass depleted lost not only what they had but hurt their pastures for some time to come. Those that controlled their stocking rate and actually improved their pastures with good grazing management where able to hold on longer, to the best of the best in their herds. I have posted on another thread that my pastures were reduced to 12 head on 86 acres and still had not been fed any hay. I can see where it is justifiable to save high quality genetics. The expense of feeding them may pan out because of sales price.
I am by no means telling anybody what they should do or should not do. I do know their are a lot of things I would need to improve on. I asked simple questions out of curiosity nothing else.
As far as you being in the construction business, I know exactly where you are coming from. I have been in it in some way shape or form since 1967. I've been at the bottom and the top. Right now I'm crawling back up from the bottom. Actually from way below the bottom. I'm just starting to see the bottom now.
 
in the last week weve fed 6 bales of hay.an weve done a hay count an are down to 40 bales.well thatll get us till mid jan.an then the sale off will start.an feeding out of the sack heavy will start,unless the rye really kicks in an grows.
 
Your hay count and run out date ls the same as ours. I thought for a moment you were reading my notes :D I am hoping that I can purchase some more hay in mid January for a price that is not too high. They are just eating more hay then I anticipated.
 
This is the main reason I have my own baler . I went around asking if I could bale what I could find. . NOt the best hay but it's the same as every one is buying for 75 a bale . And during the good times I bale for others .
 
Hay biz around here fluctuated year to year and prices settled around 40-50/bale, with no distinction in bale size. We are fringe to the real cattle areas, and I suspect more hay was sold to horses than cattle. There has been a tremendous shakeout in cattle and horses here. The hay market kind of tanked last winter, because of that. I see no evidence anyone here is saving heifers. And I saw little evidence last summer that anyone baled hay on speculation. A long stretch of bad weather might prompt a big boost in prices, but I'd say supplies are tight, but demand is low.
 
HomePlaceAngus":3bsrsikz said:
Your hay count and run out date ls the same as ours. I thought for a moment you were reading my notes :D I am hoping that I can purchase some more hay in mid January for a price that is not too high. They are just eating more hay then I anticipated.
we can push our out date further up by feeding more days out of the sack.an i was thinking like you that hay prices will come on down some,but im beginning to doubt that now.we have some we can cull as well as a few calves to sell.but i dread culling deep into the herd just yet.plus the quality of the hay prolly wont be worth feeding.every load ive seen for sale didnt look worth a crapp.
 
Hay was higher here this fall than normal because of our drought. And now most all the hay is sold out. If you didn't buy hay early your not getting any now. Heck most the bulk corn is sold out already, it's going to be a mess if we have another dry spring.
 
$7.00 corn put a hurt on hay this year, too. I saw a lot of ground that had been in hay for as long as I can remember full of corn. I buy my hay from a neighbor who doesn't see me as a down payment on his combine, so he's not raised his price to me in three years.
 
IGotMyWings said:
$7.00 corn put a hurt on hay this year, too. I saw a lot of ground that had been in hay for as long as I can remember full of corn. quote]

Hay is still cheap here after a very wet spring that prevented some crops from going in, and after some older cow/calf guys cashed out. I purchased a hay surplus from some regular suppliers who called me up and asked me to buy more.

Driest fall in 147 years resulted in all kinds of backhoe or dozer ditch cleaning and tree removal. Crop insuraance seems to still owrk. So I think next year will be a different story.
 
I guess I do not understand the complaint. The hay supplier is in business also. The market for hay fluctuates depending on supply and demand. All commodities are marketed in this manner. Why should the hay supplier subsidize folks that have bought cheap hay in the past when he has a market for more income elsewhere now? Offer him what he can get for hay elsewhere minus his long haul expense and I believe you will have more hay available to you than you need.
 
agmantoo":35uh0taw said:
I guess I do not understand the complaint. The hay supplier is in business also. The market for hay fluctuates depending on supply and demand. All commodities are marketed in this manner. Why should the hay supplier subsidize folks that have bought cheap hay in the past when he has a market for more income elsewhere now? Offer him what he can get for hay elsewhere minus his long haul expense and I believe you will have more hay available to you than you need.


I think this is the complaint by some....they don't mind paying more but they're good friend the hay supplier simply cut them completely out. They didn't get a chance to "offer him more". Markets truly are more greed driven than you would ever know. When one ingredient goes up considerably in price, the alternative ingredients often go up proportionatly...not because of demand but "just because we can". I see it everyday.
 
On the other side of the coin, as beef producers, do we not all want the price that beef is selling for elsewhere when it goes up? Because I was selling calves for less 3 years ago, should I continue to supply them at that price now when the market overall is higher? When the price does drop, I will get less and I know it. What I need to do is to position myself so when the current market shifts downward, I can still remain profitable, but at a lesser amount. It is all in planning and management!
 
the price of calves will go up an down ,but that doesnt mean our imputs will go down.our inputs keep going up no matter what.
 
bigbull338":ljmzad68 said:
the price of calves will go up an down ,but that doesnt mean our imputs will go down.our inputs keep going up no matter what.

Your statement above is a mindset. Wikipedia defines mindset as "a mindset is a set of assumptions, methods or notations held by one or more people or groups of people which is so established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices, or tools." There was a time when I fell into that group. I had been in the feeder calf business for roughly 3 years. Prior to that I had tried to be in the feeder pig and pork finishing business. I was also farming crops. I made very little money and took a lot of risks. My overall observations were that as time passed my crop and my meat production outputs increased but so did my inputs. My risks sky rocketed and my income only held or diminished. I decided I would make a change and I did. The crop land I leased to others, I ceased with the pork operation and sold off the equipment. With the feeder calf business I decided I would eliminate all input expenses that I could. Hell never froze and the sky did not fall. I went to rotational grazing before it became popular and ceased to make hay and dropped those expenses, I no longer bought commercial fertilizer, I feed no grain, I ceased to use herbicides on the pastures, I no longer had any need for vet services, I cure the problem or bury the animal. Now I produce animals that can thrive on what my farm produces. You will never see me post that I marketed a calf at weaning that weighed 750 lbs. My farm will not support that. What I do market is a calf that will sell in the top 10% price range for its weigh group. I will share that I am a low cost producer of calves that are profitable even in a bad market. Let me share something with you but not directed to you. A rabbit and a turtle were going down a rutted dirt road. The turtle was in the rut and the rabbit was on the road shoulder. As the rabbit passed the turtle he asked the turtle why he did not get out of the rut and up on the shoulder where the traveling was better? The turtle responded he could not get out of the rut. The rabbit went on. Later when the rabbit was returning via the road he again came upon the turtle who was now out of the rut and own the shoulder. The rabbit said "I thought you told me you could not get out of the rut" The turtle replied " I could not get out of the rut but then a truck was coming and I had to"
Continuing to live with the constantly increasing inputs cost will IMO result in the producer taking the risks and not participating in the rewards.
 

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