Outrageous hay prices

[cross_7]

to be honest we are so far behind on rainfall and lots of pastures have been grazed down to the point it's going to take lots of rain and time for the pastures to recover, so hay is not going to help much.
some guys are sending cattle north. one guy i know sent his to south dakota. it cost him 70.00 a head to ship and costing him a 1.00 a day per head for pasture and care.
some are buying hay, but most are just selling out and waiting to see if it ever does rain again.

 

[Kathie in Thorp]

SD has some good grazing land -- probably on Indian leased land around the Mobridge area. Many years ago, they shipped more cattle out of there then anywhere else in the country -- shipped cattle north into SD and raised on leased tribal grounds. There's an excellent book about it -- can't think of the name of it, but I think "New Evertts" or something very close to that spelling was the tiny little burg near Mobridge, along the MO river, that was the shipping point. N.E. is now just a fishing resort spot on the map, if it's even on a map.

 

[Suzie Q]

If they haven't baled before that means they have either brought in a contractor with a round baler which they have to pay for or have bought a round baler themselves.

Round balers are more expensive here than over there, but $50,000.00 for the smallest one you can get with no cutters if you want to buy new. The netting is also not cheap. Add in time, tyres, diesel and oil. It costs the same to bale a bale of hay whether it is crap, grass or good feed.

Also if they did not have the equipment to move round balers before they would need a tractor with a front end loader and hay spike and a hay trailer. Also not a few dollars.

That does not count the ploughs you need, the cost of the seed, the cost of fertilizer, the rake, the sheds to keep the equipment in and the hay as well if they wish.

Not to mention the cost of irrigating if needed and the cost of a truck to bring it to you if being delivered, not to mention the milage.

I takes the same amount of equipment to make 1 bale as it does to make 1000 bales.

 

[msscamp]

I have a question for those that sell hay, and the question is - How much profit is too much to make when selling hay?

When it takes advantage of someone in a desperate situation.

 

[Isomade]

So if the government comes in and limits the price and guys quit selling hay, what does that accomplish?

Seems to me if they are able to sell at high prices, somebody thinks it's worth it. If it isn't, then they would have to lower prices or quit selling.

I'm always amazed in the "land of the free" how many want government control over everything.

I recall in hurricane Katrina some guys thought they could make money hauling in generators. The government decided they were gouging people and put a stop to it. So then there weren't enough generators and alot of people were upset - they were desperate and willing to pay extra.

:nod: don't need no dam Government help. They screw up dang near everything they touch. Most of em aint never seen a cow in real life. Reminds me of the add in a new paper some idiot paid to put in there, it read- "Stop the needless slaughter of cows. Please get your beef from the grocery store where no animals were harmed". It was probably a politician that paid for that add.

 

[angus9259]

If they wanted $90 a ton would you offer them $120 so they made a reasonable profit, or would you take every last stick of it?

 

[TXBobcat]

I have neverheard of $400 a ton hay....not even that much for alfalfa delivered down here.

I know of someone selling bahia for around $130 - $140 a bale, and the bales weigh around 700 lbs (4x4's), so that's right around $400 a ton. That's around the Austin area.

 

[TexasBred]

But we do have some around here trying to make a killing. Most have never sold hay before in their lives. They're row crop farmers who typically plow the wheat, milo and corn stalks back into the ground. This year they're baling everything but mesquite and asking $85 a roll for it. This is after they sell their grain, collect and collect on their crop insurance.

Are these guys getting crop insurance on crops they harvested

Yessir...don't knowexactly how it all works but they certainly file claims and collect.

 

[inbredredneck]

Well if they are collecting it was because their income off the crop fell below the insured value.

Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

 

[alisonb]

I do beleive in capitalism and a person's right to charge whatever they want

Good ol' Capitalism and the whole 'free enterprise' concept is no longer working for the good of all as it did years ago. The population has multiplied, become more greedy and desperate due the economic situation. The vast majority of people will 'cut your throat' for their own gain.

 

[TexasBred]

Well if they are collecting it was because their income off the crop fell below the insured value.

Revenue Protection policies insure producers against yield losses due to natural causes such as drought, excessive moisture, hail, wind, frost, insects, and disease, and revenue losses caused by a change in the harvest price from the projected price. The producer selects the amount of average yield he or she wishes to insure; from 50-75 percent (in some areas to 85 percent). The projected price and the harvest price are 100 percent of the amounts determined in accordance with the Commodity Exchange Price Provisions and are based on daily settlement prices for certain futures contracts. The amount of insurance protection is based on the greater of the projected price or the harvest price. If the harvested plus any appraised production multiplied by the harvest price is less than the amount of insurance protection, the producer is paid an indemnity based on the difference.

Had no idea exactly how it worked but do know that most farmers down this way do collect some insurance money even in good years. Even farmers that grow it and sell it for silage will leave four rows in the field for the insurance adjuster.

 

[backhoeboogie]

I have a question for those that sell hay, and the question is - How much profit is too much to make when selling hay?

In other words, is 25% profit too much, or 50% profit, or 75%, or maybe even 100% or more?

The reason I ask is because, as you all know, we're in short supply of hay down here in Texas and hay prices, if you can find it, are all over the board. I've seen it anywhere from $140 to well over $400 a ton.

It kind of upsets me that people would intentially take advantage of fellow ranchers to make a buck. I do beleive in capitalism and a person's right to charge whatever they want; however, I guess it's more of a moral issue with me.

I could have irrigated this year and come out ahead. Who knew in June that this drought would last like it has? Irrigation cost me $42 a bale last time I did it.

You can sell hay to strangers and come out ahead. Sort of like dropping your cows off at the sale barn and let the market prices dictate. If I would have added the $42 a bale price to the hay, and tried to actually earn $5 a bale, all the regular customers would have been totally ticked off. They would have bought elsewhere just because.

Nice guys always finish last. That is why we are no longer in the hay business for the most part.

 

[JSCATTLE]

I have a question for those that sell hay, and the question is - How much profit is too much to make when selling hay?

In other words, is 25% profit too much, or 50% profit, or 75%, or maybe even 100% or more?

The reason I ask is because, as you all know, we're in short supply of hay down here in Texas and hay prices, if you can find it, are all over the board. I've seen it anywhere from $140 to well over $400 a ton.

It kind of upsets me that people would intentially take advantage of fellow ranchers to make a buck. I do beleive in capitalism and a person's right to charge whatever they want; however, I guess it's more of a moral issue with me.

I could have irrigated this year and come out ahead. Who knew in June that this drought would last like it has? Irrigation cost me $42 a bale last time I did it.

You can sell hay to strangers and come out ahead. Sort of like dropping your cows off at the sale barn and let the market prices dictate. If I would have added the $42 a bale price to the hay, and tried to actually earn $5 a bale, all the regular customers would have been totally ticked off. They would have bought elsewhere just because.

Nice guys always finish last. That is why we are no longer in the hay business for the most part.

I'm the same way I'd rather keep all my hay instead of having someone thinking I'm trying to get to them ...I don't mind bailing for some one .. for me its supply and demand .. if someone is willing to pay what they are asking for the hay then its worth what they are asking ..the guys that think they are getting screwed have the option not to buy ...

 

[houstoncutter]

I think something that many of us will have to learn, is how to raise cattle with little or no hay. I know that over the last 10 years I have reduced the amount of hay that I was feeding. If I get back in the biz, I think I am going to have to reduce that amount by 75%. It will mean some changes in cattle size, calving times, reduced numbers and the ability to unload the herd the herd at a moments notice.

I understand that this will not be possible in some parts of the country, but producers in snow country can have cattle graze stubble... This is nothing more than standing hay. The rub for my northern cattle producers as well as us here in the south, are cows that are too big. We as producers have kept the same poundage of meat available, with fewer head for the last 30 years. I think those days are over. Right now those big cows are selling at record prices, that will change. Its time for all of to rethink our operations.

 

[backhoeboogie]

Its time for all of to rethink our operations.

Yes. Never sell any hay until their is a drought. Makes no sense to sell it for $5 a bale profit. You are paying yourself next to nothing for your time. I can afford to sit on hay. That is what I intend to do from now on.

 

[TXBobcat]

Its time for all of to rethink our operations.

Yes. Never sell any hay until their is a drought. Makes no sense to sell it for $5 a bale profit. You are paying yourself next to nothing for your time. I can afford to sit on hay. That is what I intend to do from now on.

I understand the profit margins are small for alot of hay producers, but it seems there is pretty good money to be made right now in the hay trading business. You can still get it trucked in for $70 - $80 a roll, then turn around and sell it for $140 - $150.

 

[Jim62]

........."Its time for all of to rethink our operations."...........

That "re-thinking" would probably work pretty good. But, you seem to be assuming that it will rain every now and then. Even miniature cattle need SOMETHING to eat, and thinking about grass ain't gonna make it grow. I know----------I've tried it.

 

[TexasBred]

Its time for all of to rethink our operations.

Yes. Never sell any hay until their is a drought. Makes no sense to sell it for $5 a bale profit. You are paying yourself next to nothing for your time. I can afford to sit on hay. That is what I intend to do from now on.

What is the big expense on irrigation?

 

[dun]

Its time for all of to rethink our operations.

Yes. Never sell any hay until their is a drought. Makes no sense to sell it for $5 a bale profit. You are paying yourself next to nothing for your time. I can afford to sit on hay. That is what I intend to do from now on.

What is the big expense on irrigation?

The original start up expens is pretty high but when we irrigated alfalfa the biggest cost was electricity to run the pumps 24 hours a day for all but about 3 months a year.

 

[TexasBred]

Was just curious as I've never irrigated. I know a fellow that's been irrigating about 150 acres of coastal since about June. Runs off a well with a spool of pipe and a gun that shoots it about 50 yards. Place looks like Garden of Eden and I'm sure he's already cut it 3 times at least. Don't know how many hours he runs it per day.