Hay Profit

Ross Johnson · Sep 10, 2009

Hey guys/
Looking for an honest answer regarding money!!!
I"m looking at renting some hay ground this year. problably about 95 acres. good ground 45acres new seeding/the rest well established. Would like to buy newer baler. Curruntly have hesston 5580, looking at john deere 535,or new holland 688? How much profit per acre can I expect/count on? Need to make payments on baler so need advice as to what to do? How much risk?

paul · Sep 11, 2009

Hay is about salesmanship. And timing.

Put up a better product than the fellas around you; and be able to sell it for more to more people.

Profit? In any one year?? Can often be a negative number.

Line up your markets before you line up that much money.

No one but you can answer your question - what ground, what type of hay, who will be buying from you, do you have the time to make the hay when it needs it, not when you get around to it, etc.

--->Paul

Tom in TN · Sep 11, 2009

Ross,

I live in Middle Tennessee. Hay is dirt cheap this year. Two years ago when we had a late freeze coupled with a drought, 4X5 round rolls were selling for $65 - $75 each. This year, 4X5 rolls are selling for $20 - $25 each.

Fields are lined with rolls that are simply going to rot.

Good luck with your enterprise.

Tom in TN

Anonymous-0 · Sep 11, 2009

Need way more info to even guess. Where? What kind of hay? Market in your area? Established customers already? Tractors? Back up baler? Storage? Hauling equipment? What type of ground? Baling for others on custom basis? Full time farmer or day job? Own cattle to feed rained-on hay? Horse farms nearby? Help us out a little. Tom

Allan in NE · Sep 11, 2009

Expect a profit? To make payments?

Comon' now. Quit foolin' around. Some of these guys are gonna think you are serious.

Allan

TWheat · Sep 11, 2009

What Allan in NE said

TGIN · Sep 11, 2009

Were sposta be makin a profit ?? Dont quit the day job and it will be best if ya can keep the wife workin too .

Bill in IL · Sep 11, 2009

Think you would be better off to secure some custom baling jobs for cash but even that can be dicey depending upon the party you are baling for. Your going to have to cover a lot of acres to make payments.

We baled about a week ago. Broke a universal on the pto tore up the knuckles too so there went all the profit from those loads. Gotta wonder why we do it but couln't imagine not doing it either.

ChrisinMO · Sep 11, 2009

In southern MO, hay is everywhere. We've had two good summers for grass, this one was better than the last one. I am buying some extra hay right now. Some of the best made orchard grass and clover in 4x5 rounds I've ever seen. He only wants $25 per roll. Compared to a couple of winters ago, I'll be able to afford to feed my animals like there's no tommorrow.

We make some hay, too. Usually put up as much of the grass hay as we can for our animals. Any alfalfa we need we get from people in Allan's neck of the woods. We usually cut the hay on shares. I've never looked on making hay as a profit generating venture, rather as a way to reduce costs, which I guess you could look at as profit. Of course, this year I can buy all I want for not too much more than it costs me to make...and no aggravation. Maybe I'll buy a whole bunch and put it under roof in the dark, then I won't have to make hay at all next year! :>)

Christopher

RodinNS · Sep 11, 2009

Listen to Allan....
If you're serious, you better find a budget beater and keep your overhead low.
Making payments on anything related to the hay racket around here would be stupid. There isn't a more polite way to say that.

Rod

Iowa Jim · Sep 11, 2009

If yo uare not afraid to work, then Hay will be a money maker. I prefer hay since the price can truly be set based on quality and supply&demand rather than the CBOT or the other commodity exchanges.

Jim

Negligence · Sep 11, 2009

Two biggest factors for you are location and quality. Location because you need buyers, and quality because you don't want to be making cattle hay (it's a loss) and you need good hay to outsell the guys around you.

But -- you won't break even with having to pay rent, pay for new baler, tractors, fuel, supplies, and so forth on 95 acres. You really have to scale up in land size before you start seeing more money in your pocket, and of course, that means you have to sell a lot of hay.

Here one way to look at it: the money you make from the 95 acres will pay for your equipment costs, and any extra acreage will start to pay for your labour costs (that's where the money is for you). The more land you can cover equals more money in your pocket as long as you've got buyers lined up.

It costs me about $15/round bale to produce. Most of my equipment was bought before so I don't include those "sunk" costs, otherwise my price per bale would be upwards of $20-25. Good crop here sells for around $30-35/bale, not leaving much pocket change even for premium hay.

MN Scott · Sep 11, 2009

Hay-Profit?? Those two words just don't go well together.

supergrumpy · Sep 11, 2009

waltdavies · Sep 11, 2009

Forget the large round bales most horse people want 35 to 45 lb square bales that women can handle. there is more money in horse hay but more trouble trying to please Yuppies who think that their horses will only eat certain types of hay at the lowest cost.
I bought a nice NH 268 SQ. baler at a garage sale for $250 put a new belt and a wiper off my my NH 78 and baled 3000 bales. Bought my fuel in the winter when it was cheap. Don't hire anyone if possible let the folks pick it up in the field but put 1/4 to 1/2 in the barn for winter sales that is where the money is.
The older equipment in good shape will last forever with little cost most folks around here don't buy new. To many Yuppie farmers who do and then sell out in a few years for a lot less with little or no hours on the equipment.
Walt
PS like others have said do it for fun not profit.

Anonymous-0 · Sep 11, 2009

I grow hay on about 30 Acres. Use all cheap antique equipment. Small squares about 30 - 35 pounds. I'm not complaining.

a.rothermel · Sep 11, 2009

i would buy used equipment. in all honesty unless you bale over 500ish acres of hay. used equipment works giood and its the only way you can make anything. selling hay is about finding good reliable buyers. you treat them right they will probably treat you right. you will have good years and bad years.

GordoSD · Sep 11, 2009

My net on alfalfa/orchard grass hay, small square bales is about $280 per acre. Average yield is 3.6 T/A. I sell about half retail in the field and the rest wholesale to a dealer. My equipment debt service and maintenence is low, due to small used items, and self repairs, at less than $1000 per year.
I'm small producer, about 100T per year.
But it has been better than the corn per acre profit the last 4 years. Being able to use the 10-20-40 fert at low rates seems to be the break point. And no herbicide sure helps.

Gordo

Hay Profit

Ross Johnson

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paul

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Tom in TN

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Anonymous-0

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Allan in NE

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TWheat

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TGIN

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Bill in IL

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ChrisinMO

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RodinNS

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Iowa Jim

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Negligence

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MN Scott

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supergrumpy

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waltdavies

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Anonymous-0

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a.rothermel

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GordoSD

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