times are changing

Help Support CattleToday:

cypressfarms

Well-known member
Joined
Nov 5, 2005
Messages
3,473
Reaction score
29
Location
New Roads, LA
For the last (i don't know how many years), I've had a guy who would bale hay for me on the "halfs". I have about 100 acres leased hayland adjacent to my pastures, and I fertilize and keep it up. My trusty hay guy this year told me that he was going in the construction business (dozers, hauling dirt, etc.), and he gave me the names of a couple of guys that he sold his equipment to.

I was amazed to find that now the "going" rate is 70/30, as in 70% for the baler, 30% for the landowner. I managed to talk him to 60/40 - but only if I kick in $100 for diesel each time he bales. Have I been having it too good, or are these rates out of whack???

To his credit, he sells bales for $22 per bale (4 X 5) - and he told me that if I needed more he would make them for me at $17 per bale.
 
50/50 is what I have with the guy that's going to bale ours. I pay for the fertilizer and it is our pastue. I didn't fertilize one field so we are doing a 3/2 split on that one. He gets 3 to my 2. Could just be our area or maybe I'm lucky? Dunno.
 
When I do hay on shares I try to figure what I could sell the hay for. If I am getting 20 dollars for cutting raking and baling then if hay is selling for 30 dollars I need to get 2 bales to owners one. If hay is selling for 40 dollars then 50/50 split. Hay baling will be going up this year probably 25 a roll.
It also depends if I need hay or have enough and how easy is hay to sell. If not very easy to sell then I will only do on the share if I get a good portion of the hay
 
cypressfarms":3cdvfxpy said:
For the last (i don't know how many years), I've had a guy who would bale hay for me on the "halfs". I have about 100 acres leased hayland adjacent to my pastures, and I fertilize and keep it up. My trusty hay guy this year told me that he was going in the construction business (dozers, hauling dirt, etc.), and he gave me the names of a couple of guys that he sold his equipment to.

I was amazed to find that now the "going" rate is 70/30, as in 70% for the baler, 30% for the landowner. I managed to talk him to 60/40 - but only if I kick in $100 for diesel each time he bales. Have I been having it too good, or are these rates out of whack???

I don't know anything about what hay is selling for in your area, but I tend to suspect that you've had it too good. We do a fair amount of custom baling and, unless we are getting paid by the bale, it is usually done on a 60/40 basis. But, by the same token, we are not looking to get rich - just make a bit of profit.
 
theres no such thing as a 50/50 hay splitt anymore.most people want 60/40 or 70/30.an theres no way in heck id spend a crappload on fert an splitt 60/40.i wont splitt at all now.bale all my hay.then sale the extra for $30 to $35 a bale.but then again i wont blow any money on fert.all my hay is unfert hay.
 
I fertilize and bale my own. I know fuels has gone up a lot, but so has fertilizer. You will have to decide if keeping all the hay and paying his per bale charge is better for you than giving up 70% of your crop. Your baler is trying to get his baling fee by discounting your hay (he doesn't need it and hast to sell it to get paid). Figure your costs in the hay (rent,fertilizer,ect.) Compare that against other options (per bale charge, 70% of the crop for baling, keeping all the hay and selling extra yourself.) It is a stretch but I'm willing to bet that it would be better in the long run, to bale only what you need, pay the baling, and leave the rest on the field (shred it off, put those nutrients back into the soil) than cutting it off, giving it away, and than have to fertilize again.

I know to, that some times financial conditions have to be a part of the decision making process. But I have to say that, in my opinion, good quality hay should not be sold at a discount just because of an oversupply of junk hay depressing the local market.

Just yesterday, I brought home 14 exposed heifers to put on extra grass, plots that would normally cut for hay, because hay prices do not support fertilizer and baling cost. I have an uneasy feeling of my neck stretching on this too. I'm beginning to think that setting on my duff makes more money than trying to be productive.

Bigbull's post made it up before I finished this, I tend to agree, except unfertilized hay doesn't work for everyone.

I believe that post puts Bigbull at 4900 and counting. Getting close.
 
1982vett":2adweoyi said:
I fertilize and bale my own. I know fuels has gone up a lot, but so has fertilizer. You will have to decide if keeping all the hay and paying his per bale charge is better for you than giving up 70% of your crop. Your baler is trying to get his baling fee by discounting your hay (he doesn't need it and hast to sell it to get paid). Figure your costs in the hay (rent,fertilizer,ect.) Compare that against other options (per bale charge, 70% of the crop for baling, keeping all the hay and selling extra yourself.) It is a stretch but I'm willing to bet that it would be better in the long run, to bale only what you need, pay the baling, and leave the rest on the field (shred it off, put those nutrients back into the soil) than cutting it off, giving it away, and than have to fertilize again.

I know to, that some times financial conditions have to be a part of the decision making process. But I have to say that, in my opinion, good quality hay should not be sold at a discount just because of an oversupply of junk hay depressing the local market.

Just yesterday, I brought home 14 exposed heifers to put on extra grass, plots that would normally cut for hay, because hay prices do not support fertilizer and baling cost. I have an uneasy feeling of my neck stretching on this too. I'm beginning to think that setting on my duff makes more money than trying to be productive.

Bigbull's post made it up before I finished this, I tend to agree, except unfertilized hay doesn't work for everyone.

I've gone thru the same mental gyrations and because I have room to store hay covered I will bale and store and either use or sell when the next drought drives us the value of that hay.

I believe that post puts Bigbull at 4900 and counting. Getting close.
 
Sorry..screwed up that last post. What I said was that I have gone thru the same mental gyrations and have decided to cut/bale because I have covered storage for my hay. I can store it and wait for the next drought to drive up the value of that hay and either use on my cows or sell on the open market.
 
bigbull338":3pbltsuw said:
theres no such thing as a 50/50 hay splitt anymore.most people want 60/40 or 70/30.an theres no way in heck id spend a crappload on fert an splitt 60/40.i wont splitt at all now.bale all my hay.then sale the extra for $30 to $35 a bale.but then again i wont blow any money on fert.all my hay is unfert hay.

Wrong. :D But I guess I'm lucky.
 
I don't have a link to it but I recently read an article in Ga.Cattleman magazine showing that fertilized bermuda, even at todays fertilizer prices, easily pays for itself in increased quality and volume of hay produced.
 
bigbull338":2t2xk6yg said:
  • theres no such thing as a 50/50 hay splitt anymore.
most people want 60/40 or 70/30.an theres no way in heck id spend a crappload on fert an splitt 60/40.i wont splitt at all now.bale all my hay.then sale the extra for $30 to $35 a bale.but then again i wont blow any money on fert.all my hay is unfert hay.
there was with me until this year. my neighbor did it for me on the halves. he died last spring,after a year his widow decided to sell his equipment ..was able to buy it just recently.
 
every hay baler we used always wanted 60/40 or 70/30.an we would let them bale 120 to 160acs.an they still took almost all the hay.what broke the splitt hay deals back was a friend screwed us an he knew it.it was in the bad drought years.an we told them we needed 80 to 100 bales because of the drought.well that sucker got greedy an left us with 60 bales.an then he got scared an sold all his cows.an kept the 150 bales he got from us.an they baled our hay after it had burned up.because they was out getting free hay.an everytime i saw them i chewed both guys out bigtime.never let up on them bout screwing us on the hay.an he asked if he was going to get to bale our hay again.an i told he heck no your not coming back on the place.an your not going to bale the medow we dont need so dont ask.
 
bigbull338":3aqfwfn4 said:
every hay baler we used always wanted 60/40 or 70/30.an we would let them bale 120 to 160acs.an they still took almost all the hay.what broke the splitt hay deals back was a friend screwed us an he knew it.it was in the bad drought years.an we told them we needed 80 to 100 bales because of the drought.well that sucker got greedy an left us with 60 bales.an then he got scared an sold all his cows.an kept the 150 bales he got from us.an they baled our hay after it had burned up.because they was out getting free hay.an everytime i saw them i chewed both guys out bigtime.never let up on them bout screwing us on the hay.an he asked if he was going to get to bale our hay again.an i told he heck no your not coming back on the place.an your not going to bale the medow we dont need so dont ask.

by bigbull338 on Mon May 28, 2007 8:01 am

our custom baler is charging $16 a bale to cut rake an bale.the baler is a vermeer 605 i think.so he makes 5 by 6 bales.bigbull338
GURU


Posts: 4919
Joined: Thu Apr 28, 2005 12:34 pm
Location: texas



?????????????????????????????????????????????????/
 
mike we didnt start hiring the baling done till 2007.when we sold out of the dairy we started letting people cut on shares.an in 2007 we hired the baler to bale hay.because of what happened the last 2yrs doing the 60/40.i hope he charges $20 a bale this year without going up.
 
bigbull338":1vjoz3eo said:
mike we didnt start hiring the baling done till 2007.when we sold out of the dairy we started letting people cut on shares.an in 2007 we hired the baler to bale hay.because of what happened the last 2yrs doing the 60/40.i hope he charges $20 a bale this year without going up.
you'll be lucky if he doe's. i hope too be able to sell some... to help offset somthing ...anything hell :p
 

Latest posts

Top