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Cattle Boards
Grasses, Pastures & Hay
Price gouging vs profit opportunity
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<blockquote data-quote="TexasRancher" data-source="post: 1739610" data-attributes="member: 8359"><p>I used to think $60. round bail of hay was kind of expensive...but then i did some research on hay fields, needed fertilizer to "give back" to the soil, costs of equipment and maintenance required on those pieces of equipment...multiple times going into the fields, logistics of putting up hay, and fuel/oil costs....then after all that i looked at the operator's time (labor)....I found that even excluding all labor costs....I realized that $60. bail of hay was a great bargain....I was not being ripped off. Basically what i found is....the farmer-operator is working for free in those fields...and just one major breakdown cost will put him upside down for one to two years. Boy are hay producers risking....i won't complain or rerun the numbers until hay gets over $120. $60. is a bargain.</p></blockquote><p></p>
[QUOTE="TexasRancher, post: 1739610, member: 8359"] I used to think $60. round bail of hay was kind of expensive...but then i did some research on hay fields, needed fertilizer to "give back" to the soil, costs of equipment and maintenance required on those pieces of equipment...multiple times going into the fields, logistics of putting up hay, and fuel/oil costs....then after all that i looked at the operator's time (labor)....I found that even excluding all labor costs....I realized that $60. bail of hay was a great bargain....I was not being ripped off. Basically what i found is....the farmer-operator is working for free in those fields...and just one major breakdown cost will put him upside down for one to two years. Boy are hay producers risking....i won't complain or rerun the numbers until hay gets over $120. $60. is a bargain. [/QUOTE]
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Price gouging vs profit opportunity
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