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.
What is a fair deal for custom baling?
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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.
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
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
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
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.
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.
Angus Cowman
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George if your only getting 8000 bales out of a baler I think I would look at a different brand or a different maintenace program as I get 12 to 15000 out of one before I consider them wore out enough to trade
LaneFarms
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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.
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
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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
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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
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LaneFarms":1jqucvqp said:
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
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.....
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
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.
