What is a fair deal for custom baling?

Help Support CattleToday:

phydeaux

Member
Joined
Sep 21, 2011
Messages
8
Reaction score
0
I have land in North Texas, Gainesville area and have been haying anywhere from 50 to 120 acres for years depending on whether part of the land was leased or not. The arrangement was the baler took half for the work and bought the other at fair value. Is that a common arrangement? Also what is the best way to determine what is fair market value? Finally, the easiest way to market hay? Obviously I am being somewhat optimistic as it doesn't rain in Texas any more. Thanks. It's improved coastal without weeds by the way.
 

Limomike

Well-known member
Joined
Feb 14, 2006
Messages
4,132
Reaction score
1
Location
Oklahoma
If it works for both of you, then its a good arrangement. We used to bale all of our own hay, until it got down to where it was only me doing all of it, so now, my neighbor does it all (cutting, raking, baling) and he gets 2/3, I get the rest. Common? I dont know.. maybe others will chime in and let us know what they think.
Fair market value to me is what hay (of the quality that yours would be) is selling for in your area. Easiest to market hay.. numerous ways.. local newspaper, bulletin boards at the feed store, craigslist, hayexchange.com, and haybarn.com .. just to name a few.
 

bigbull338

Well-known member
Joined
Apr 28, 2005
Messages
16,565
Reaction score
0
Location
texas
around here they want the 70/30 splitt.an thats ok if you can get by on very little hay.but its cheaper to hire them to bale the hay an pay for it outright.then if you want sell what hay you dont want to the custom baler for a set price.if we have extra hay we sell it for $35 to $40 a bale.but with this drought im not planning on selling anymore extra hay when it breaks.
 

Farmerjon

Well-known member
Joined
Aug 13, 2011
Messages
243
Reaction score
15
Location
NW Indiana
A past student of mine cut, raked and round baled 8 acres for me this year first cutting. Got 18 - 1800# bales off of it. He charged me $20.00 a bale. Will never buy a baler for that loss of headache and investment.
 

George Monk

Well-known member
Joined
Mar 1, 2006
Messages
290
Reaction score
0
Location
Missouri
I custom bale and charge $25 to mow rake and bale. I am going broke doing it. A good friend and I were just talking about custom farming. A new baler is about 40k wore out at 8000 bales some salvage 10k so those 8000 bales are close to $40/bale without gas, tractor, or operator. So fair is usually in favor of the owner.
If I bale on shares it is 1/2 and 1/2.
A neighbor wanted me to mow/rake/bale some second cut clover one year. Figured maybe 2 bales to acre. I wanted to help him out 'cause he is a great fenceline neighbor. Offered to do it for $20/bale. He didn't think he could afford that and asked me to do it for less. Hay is a real tough commodity to make money on.
 

LaneFarms

Well-known member
Joined
Nov 23, 2005
Messages
497
Reaction score
0
Location
north central florida
I get 12 to 15000 out of one before I consider them wore out enough to trade[/quote]

AC I guess I need to start shopping then, mine turned 18k this week with only replacing a couple sprockets and one bearing so far.
 

George Monk

Well-known member
Joined
Mar 1, 2006
Messages
290
Reaction score
0
Location
Missouri
Okay the 8000 was just a number....but even if you double it to 16000 you are still looking at $20/bale with out fuel, operator, net wrap, mowing, or raking
 

jscunn

Well-known member
Joined
Feb 7, 2005
Messages
1,631
Reaction score
56
Location
Northwest Florida
George you need to rerun the numbers 40,000 dollars divided by 8000 bales is $5 per bale with no salavage value on the baler..
 

Angus Cowman

Well-known member
Joined
Oct 12, 2008
Messages
7,157
Reaction score
1
Location
the Great State of Mental Distress ( Florida)
LaneFarms":1jqucvqp said:
I get 12 to 15000 out of one before I consider them wore out enough to trade

AC I guess I need to start shopping then, mine turned 18k this week with only replacing a couple sprockets and one bearing so far.[/quote]
The reason I figure 12-15000 is at that amount of bales I can still get a decent trade-in anymore than that and I take a big hit
 

cypressfarms

Well-known member
Joined
Nov 5, 2005
Messages
3,473
Reaction score
27
Location
New Roads, LA
I pay $18/bale (4x5's) for my local guy to bale my land - which means my fertilizer etc. He just cuts and bales it. If I buy from him (made elsewhere) it's been about $22/bale delivered - he only has to deliver it a mile. It was working so good I quit leasing land to make hay - it made no sense, it was a wate of money. BUT this year Texas took all of our hay (I'm in Louisiana), and was paying $75 and up per bale, and the buyer paid the freight. To my balers credit, he called me early in the summer and asked me exactly how much I would need. I told him and he guaranteed me that; but anything else he was selling to Texas. I admire him for taking care of his long term customers, even though there was money to be made in Texas. He still did ship some to Texas, and made some money, but he's not the price gouging type - so he charged what he thought was fair.

My price did go up this year to $25/bale instead of $22, but I could understand that. I can't the hayers that "rape" the struggling people inTexas because they can. That's just wrong! Luckily we've had enough rains to keep us going, but not nearly as much as usual.

This whole hay deal with the people in Texas has infuriated me. What ever happened to helping out people when they needed it? I'm glad to see Texas get some rain now, and maybe they can start to stand on their feet. All of the balers that have screwed people the last two years will find they have no customers anymore - at least around here there are plently of peaved people. Texans are our neighbors, we should help them out and not look to get rich off of it. Well at least when there time comes, they'll have someone to answer to!

Sorry for the soapbox lecture.....
 

bigbull338

Well-known member
Joined
Apr 28, 2005
Messages
16,565
Reaction score
0
Location
texas
the people selling the hay are being very reasonable with their prices.its when you have to pay $4 a mile 1 way that kills the buyer.on a 300mi run that an added $32 a bale in hauling plus the cost of hay.
 

Latest posts

Top