Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

[Localmotion]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

Okay, first off... don't laugh at my little 23 HP compact tractor! :laughing: She's done everything I've asked her to so far... but that is mostly related to Loader work and digging holes with the bucket & auger. Just kidding... I know she ain't a big farm rig.

Anyhow, we have up to 6 acres available to grow hay on. I figured I could make some extra money if I put it to use, so I'd like to get started this spring. I know NOTHING, and I mean nothing, about farming, so I'm a complete rookie when it comes to this... although I'm pretty capable, so if I get some advice I may be able to make it work!

I've been reading up on the type of grass to plant, how & when to harvest it, etc. My concerns though are the equipment. Pretty much everything I find for sale (used) around my area are for REAL (full size) tractors. I've seen the mini-baler's online, but those go for around $13k new, and that's quite a bit to spend for a hobby hay farm. If I can avoid it, I don't want to buy another tractor just for the hay work...

SO...

Considering the size of my operation, and the size of my tractor (about 20 PTO HP) can any of you recommend which equipment might work for me? What type & size of mower, rake, and baler would be best for me? Or, should I just find a $2500 old big tractor to do the work?

Also, the land is mostly flat. A couple small rises, but nothing crazy.

Thanks in advance! Any other advice or recommendations is welcomed too!

Nothing wrong with your tractor size - it's how you use it that counts! You should pick up hay growing & making fairly easily - you already have plenty of sound advice from other TBN users so I'll give you a couple of different key things to remember: Always harvest before it goes to seed (don't leave it too late otherwise your hay will be 90% stalk and low feed value) and watch the weather closely - if it looks like rain, be sure to get the hay into rows quick... You can always re-spread it again to dry afterwards. It will of course cost you a bit more - but if it's only a short spell of rain you'll still end up with a half decent crop, as oppose to rubbish bales that no-one wants.

I'm no expert in American soils - when we grew hay back in the UK we relied on plenty of FYM (farm yard manure) early on in the season - ideally chain harrow it in. They as the crop is tillering, apply Nitrogen to promote the growth. As someone has already suggested - soil sampling the fields would be a good idea to see what nutrients are present / lacking. I'd suspect that after years of continuous wheat, there will be a shortage of key nutrients such as nitrogen, phosphorus and potassium (potash) as well as possibly sulphur. Depending upon what the soil samples show - you may need to apply different fertilisers at different times of the year. If your P&K levels are OK, a good kickstarter for grass in Mono-ammonium Nitrate (MAP). It's chemical composition if similar to poultry litter (if you prefer the "organic" equivalent). If you are including Alfalfa into the leys, then be careful how much Nitrogen you apply - alfalfa is a legume and so actually makes nitrogen available to the soil and any other crops sharing that soil - you can actually see the nitrogen nodules on the roots of a growing crop.

Regarding the machinery cost - you will certainly need the basics: mower, tedder and rake. Depending upon your want - you could look at getting a neighbour or contractor to bale the crop for you. The benefit is that the baler will be your main purchase cost, along with it's servicing, string etc... The downside is that your are dependant upon someone else - who may or may not turn up before the weather breaks! An idea I've been looking at here in Spain (where balers are rare) is to build a traditional haystack: http://www.tractorbynet.com/forums/haying/268261-how-build-traditional-hay-stack.html. You could build yourself a cheap hayrake and pile your crop up into stacks temporarily - then get someone in to bale the stacks, maybe once or twice a year?

Just a few ideas to consider.... :thumbsup:

I'll definitely be following this thread - and you progress. Good Luck

 

[TSO]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

Great... now I'm thinking of trading in my tractor to a larger size! I've only had it for a year, and it's "paid for itself" with the work it's done so far, so it's not like I'll be throwing money away. If I step up to one with closer to 40 HP, do you think that'll allow me to handle things better? And by better, I mean, more adaquately.

The Kioti DK40se jumps to 41hp, 32.5 PTO hp, 3pt lift of 2500lbs, loader lift (this is what I'd be really happy with!) of 2700/3700 lbs, and weighing in (with loader) at around 5300 lbs. The DK45se jumps to 45hp/37pto.

FYI - I'll most likely stick with Kioti. This one has been reliable, the local Dealer is fantastic, the price is right, and I think Kioti has the BEST comparable loader power of all the brands.

 

[TSO]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

Also, here are a couple more pics from a few months ago... It's already past full bloom, but maybe you can tell me what weeds/plants this is. Also, someone mentioned I should brush hog it continuously this year, and apply "Red Clover" to keep the weeds down. Is that condusive to getting it ready to plant for the following year (2014) ??? From what I'm reading, 2013 will probably be a "prep" year to get the ground ready to start growing in 2014. True?








.

 

[big e]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

I'm no expert... but the yellow flowers you mentioned are probably goldenrod and the purple flowers are probably ironweed. Typical stuff that grows up in an old field. Ironweed is a sign of poor soil quality. Have your NCRS - ag extension guy come out and he will give you good info. Also, have your soil tested. And finally, for the love of god, cut down that big invasive autumn olive bush in the background!! And learn how to control them. For an autumn olive that big you'd want to hack a notch in the bark with a machete or hatchet and treat with Tordon RTU. If you just cut it it will grow back. Spray smaller plants with good strength roundup. Your NCRS might even have an "EQUIP" program to help you control invasives.

Good luck with the hay!
and
GO BUCKS!

 

[TSO]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

Ok, new question:

I'm considering upgrading my tractor. Been getting some pricing info from a local dealer. Kioti makes the DS & DK series. The DS is more of a budget line, and the DK compares more to the Grand L from Kubota, with bells & whistles. DS has 35, 40, 45 HP, but only comes in geared variants. The DK comes in 40, 45, 50 HP, and is Geared or Hydro.

I can probably get the DS4510 (45HP/35 PTO) for under $20k. I can get the DK45 for $22000 geared, or $23000 HST - OR - I can get the DK50 in Geared for $23200, and the HST for $24300 (approx).

So, my questions are:

Does it make the most sense to get the most HP? Should I automatically go for the 50 HP? (ie, is it worth the extra money considering what I'll be using it for).
Should I go with the Geared since I'll be doing some actual "Ground" work now, or will the HST still handle the ground-engaging stuff ok?

I'm used to the HST in my CK20S and I can't imagine having to actually start using a clutch, and having my left hand doing anything but steering :O I know that Hydro steals a little HP from the PTO, and Kioti states that the PTO HP drops by about 4HP in the DK50, from Geared to Hydro.

Thoughts?

 

[rankrank1]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

My 2 cents:

First, I would classify your current tractor as more of a "sub-compact" tractor. A true "compact" tractor will be slightly larger and a bit heavier. I am not real familiar with Kioti model numbers so I could be wrong though. Haying with a compact tractor is a challenge. Haying with a sub-compact will be an even bigger challenge.

Regardless, if you are looking at this venture as a way to make some extra money like your first post indicates you should just stop right now if making money is your #1 and only priority. It is going to take you several years to recoup your investment on even old junk equipment and much more likely decades now that you are also looking at buying another new tractor not to mention if you opt for nice equipment with only the few acres to hay that you have.

While the high hay prices are definitely out there right now (due to drought), you are not going to get anywhere near those prices for that scrub in your pics. Prices will likely fall too once drought situation clears up. Yields of more like 40-50 bales per acre are more like what you can expect on poor soils if that is what you have. Sure you can get higher yields, but it will cost yah in expensive fertilizer to get there.

Now if your goal is to do something with your boys and expose them to some farming without much regard for the profitable money aspect then do proceed as that alone can be very satisfying and definitely worthwhile. All kids should be exposed to a little manual labor in my opinion.

My situation: I have been baling with a Kubota L285 compact tractor since 2008 or so on 4.5 to 6.0 acres every year (of much better hay than your photos but still far from premium quality and high yields). I purchased all my old and junky haying equipment dirt cheap and was able to fix it myself for basically next to nothing so I have about as minimum of an investment as you can possibly have in all my haying equipment not counting my 35+ year old tractor which I already had for other uses. I have yet to make a profit so to speak. If I make a few dollars then I re-invest that into another dirt cheap hay equipment piece that I did not previously have. My hobby is only paying for itself so to speak as I go (assuming I pay the tractor operator zero dollars - either me or my wife) or the mechanic that fixes all the junk equipment zero dollars (me). Still making the hobby pay for itself as I go is better than pulling money out of my family budget to pay for it. I actually like doing the hay and fixing junk because I enjoy it as a hobby and nothing more and my expectations of profit are minimal.

I would not be too happy at all if I had thousands of dollars invested like you are planning to do and planning to make some extra money quickly on a few acres of hay. You can only make money haying a few acres if you keep the investment very small and modest and even then it is likely only a break even scenario at best. A truck vegetable garden would be best opportunity for making some money quickly, as your investments in equipment will be nil and tractor you already have could be made to suit that job. Manual labor will be high though. Actually haying with small square bales on a small scale involves quite a bit of manual labor too. Lastly, do remember that every haying window is pretty much a 5 day commitment of all your time. What I mean by that is that if you work a full time job like me then every other daylight hour you are not working your real job will be spent with something involving haying during that 5 day window. Actually I could not do it if I did not have my wife to tedd hay or rake hay while I am at my real job especially if overtime happens at real job. Kids want to go to the movies, play baseball, wife wants to go out to dinner, special parties, etc. it may not be happening during the 5 day hay windows as you will not be able to go. Unfortuantely only the weather and crop maturity picks when those 5 day windows happen. You do not get to pick the windows to fit your schedule.

Hope I did not necessarily talk you out of this, but remember if you do proceed forward keep your investment very minimal. I started with my 35+ plus year old compact tractor which I already had anyway, my bushog as improvised cutter(again already had), $200 hay baler plus $185 worth of parts, $180 flat bed trailer (could skip this if you have a pick-up truck) and a $25 dollar hay rake. Spent countless hours reworking the original hayrake. Each year I have kinda added one new junk hay piece for repair with my hay earnings (if you want to call it that). Bought another hay rake (since refurb'd by me), a beat up mower conditioner (since reworked by me), a tedder (still needs re-worked). Again, I have yet to make the first dollar of true profit and all my time has been donated and most repairs involve welding and hand fabrication of the weld build-ups as simply replacing the worn parts with new ones is much to cost prohibitive. Not to mention that I have not factored in my tractor costs other than fuel and maintenance costs like oil and filter changes in my profit model. In other words original purchase price of the 35+ year old tractor, depreciation, and wear and tear, have not been accounted for in my profit model at all and I have still only broke even at best. If I considered those added tractor costs then well....maybe in another 30 years I will break even. Not to mention that if I paid the tractor operator $7.50 an hour for every hour spent in the tractor seat or myself even $7.50 an hour for every hour I spend turning wrenches or welding, or $7.50 an hour to whomever loads and unloads all the bales (usually me) then maybe in another 40 years I will break even. $7.50 cents an hour could easily be made at McDonald's so that is why I am using that ultra conservative figure. Good luck if you have to pay real mechanic and welder rates.

Closing: Satisfaction of accomplishment is Priceless (Profit Not So Much if you look at all your costs)

 

[TSO]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

My 2 cents:

First, I would classify your current tractor as more of a "sub-compact" tractor. A true "compact" tractor will be slightly larger and a bit heavier. I am not real familiar with Kioti model numbers so I could be wrong though. Haying with a compact tractor is a challenge. Haying with a sub-compact will be an even bigger challenge.

Regardless, if you are looking at this venture as a way to make some extra money like your first post indicates you should just stop right now if making money is your #1 and only priority. It is going to take you several years to recoup your investment on even old junk equipment and much more likely decades now that you are also looking at buying another new tractor not to mention if you opt for nice equipment with only the few acres to hay that you have.

While the high hay prices are definitely out there right now (due to drought), you are not going to get anywhere near those prices for that scrub in your pics. Prices will likely fall too once drought situation clears up. Yields of more like 40-50 bales per acre are more like what you can expect on poor soils if that is what you have. Sure you can get higher yields, but it will cost yah in expensive fertilizer to get there.

Now if your goal is to do something with your boys and expose them to some farming without much regard for the profitable money aspect then do proceed as that alone can be very satisfying and definitely worthwhile. All kids should be exposed to a little manual labor in my opinion.

My situation: I have been baling with a Kubota L285 compact tractor since 2008 or so on 4.5 to 6.0 acres every year (of much better hay than your photos but still far from premium quality and high yields). I purchased all my old and junky haying equipment dirt cheap and was able to fix it myself for basically next to nothing so I have about as minimum of an investment as you can possibly have in all my haying equipment not counting my 35+ year old tractor which I already had for other uses. I have yet to make a profit so to speak. If I make a few dollars then I re-invest that into another dirt cheap hay equipment piece that I did not previously have. My hobby is only paying for itself so to speak as I go (assuming I pay the tractor operator zero dollars - either me or my wife) or the mechanic that fixes all the junk equipment zero dollars (me). Still making the hobby pay for itself as I go is better than pulling money out of my family budget to pay for it. I actually like doing the hay and fixing junk because I enjoy it as a hobby and nothing more and my expectations of profit are minimal.

I would not be too happy at all if I had thousands of dollars invested like you are planning to do and planning to make some extra money quickly on a few acres of hay. You can only make money haying a few acres if you keep the investment very small and modest and even then it is likely only a break even scenario at best. A truck vegetable garden would be best opportunity for making some money quickly, as your investments in equipment will be nil and tractor you already have could be made to suit that job. Manual labor will be high though. Actually haying with small square bales on a small scale involves quite a bit of manual labor too. Lastly, do remember that every haying window is pretty much a 5 day commitment of all your time. What I mean by that is that if you work a full time job like me then every other daylight hour you are not working your real job will be spent with something involving haying during that 5 day window. Actually I could not do it if I did not have my wife to tedd hay or rake hay while I am at my real job especially if overtime happens at real job. Kids want to go to the movies, play baseball, wife wants to go out to dinner, special parties, etc. it may not be happening during the 5 day hay windows as you will not be able to go. Unfortuantely only the weather and crop maturity picks when those 5 day windows happen. You do not get to pick the windows to fit your schedule.

Hope I did not necessarily talk you out of this, but remember if you do proceed forward keep your investment very minimal. I started with my 35+ plus year old compact tractor which I already had anyway, my bushog as improvised cutter(again already had), $200 hay baler plus $185 worth of parts, $180 flat bed trailer (could skip this if you have a pick-up truck) and a $25 dollar hay rake. Spent countless hours reworking the original hayrake. Each year I have kinda added one new junk hay piece for repair with my hay earnings (if you want to call it that). Bought another hay rake (since refurb'd by me), a beat up mower conditioner (since reworked by me), a tedder (still needs re-worked). Again, I have yet to make the first dollar of true profit and all my time has been donated and most repairs involve welding and hand fabrication of the weld build-ups as simply replacing the worn parts with new ones is much to cost prohibitive. Not to mention that I have not factored in my tractor costs other than fuel and maintenance costs like oil and filter changes in my profit model. In other words original purchase price of the 35+ year old tractor, depreciation, and wear and tear, have not been accounted for in my profit model at all and I have still only broke even at best. If I considered those added tractor costs then well....maybe in another 30 years I will break even. Not to mention that if I paid the tractor operator $7.50 an hour for every hour spent in the tractor seat or myself even $7.50 an hour for every hour I spend turning wrenches or welding, or $7.50 an hour to whomever loads and unloads all the bales (usually me) then maybe in another 40 years I will break even. $7.50 cents an hour could easily be made at McDonald's so that is why I am using that ultra conservative figure. Good luck if you have to pay real mechanic and welder rates.

Closing: Satisfaction of accomplishment is Priceless (Profit Not So Much if you look at all your costs)

Thanks for the response & comments... let me just clarify a few things so we're on the same page.

1) Those pics I posted of the property aren't meant to show the Hay I'll be harvesting... that's just a shot of the property, which I'll have to plow under and start fresh. I figured it was mostly weeds with grass underneath, I was just asking if someone here could identify the plants in the pictures.

2) I currently have a smaller tractor/loader. I need a tractor here, as I do a ton with it, and have plenty more to do, aside from any "farming" ventures. I've only had my small one for a year, but it's very apparent that I need more power, as I need more loader power for some ground work I have to do, and more PTO power anyhow to handle a (rented) 3-point Stump-Grinder. I've already cut down about 100 trees, and I have at least another 150 to go. Being that I still have 4 more years of payments, stepping up to a bigger tractor now won't really add a bunch of money to my budget as it is. Even stepping up to the biggest (DK50SE HST) will only add roughly $100/month of payments.

3) Yes, the cost of the implements will be a big up-front cost. However, I plan to do as you did, and buy used equipment and fix it up if necessary.

4) The only "profit" I really hope to see, is enough to pay for the cost of my equipment, over time. Since I use the tractor for so many other things around here, if it could just do something to "pay for itself" over time, I'd be a happy camper. Any later profit on top of that would be a bonus. Then, there's the tax benefits, which I'm still in the process of researching. But, from some of the folks around here that I've spoken with, it seems like there are a TON of write-offs related to "farm" work & equipment. Since I'll probably be taking a "Loss" for the first several years, that'll be a great tax writeoff, not counting the depreciation of my tractor & equipment.

5) A guy I've been speaking with about an hour away started hobby-farming his own 20 acres about 5 years ago. He jumped in blind like I'll be doing, and now gets about 3200 bales a year. So, he's getting 160/acre. With current prices, it's not hard to see how much profit he's turning on his "hobby." And it's a family venture for him, just like it would be for us... which is what adds a bonus too. We love to be outside working on the property, so this would be another adventure. Additionally, he plans to buy some more property and expand a bit, get some more rotation.

...

So, I hope this addresses a few of the concerns. However, if anyone has more, or has more options on better/easier/more profitable crops to grow, I'm all ears! Also, I don't know what a "Truck-Farm" is, but I've heard it twice now. Is that a Junkyard?

 

[rankrank1]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

Thanks for the response & comments... let me just clarify a few things so we're on the same page.

1) Those pics I posted of the property aren't meant to show the Hay I'll be harvesting... that's just a shot of the property, which I'll have to plow under and start fresh. I figured it was mostly weeds with grass underneath, I was just asking if someone here could identify the plants in the pictures.

2) I currently have a smaller tractor/loader. I need a tractor here, as I do a ton with it, and have plenty more to do, aside from any "farming" ventures. I've only had my small one for a year, but it's very apparent that I need more power, as I need more loader power for some ground work I have to do, and more PTO power anyhow to handle a (rented) 3-point Stump-Grinder. I've already cut down about 100 trees, and I have at least another 150 to go. Being that I still have 4 more years of payments, stepping up to a bigger tractor now won't really add a bunch of money to my budget as it is. Even stepping up to the biggest (DK50SE HST) will only add roughly $100/month of payments.

3) Yes, the cost of the implements will be a big up-front cost. However, I plan to do as you did, and buy used equipment and fix it up if necessary.

4) The only "profit" I really hope to see, is enough to pay for the cost of my equipment, over time. Since I use the tractor for so many other things around here, if it could just do something to "pay for itself" over time, I'd be a happy camper. Any later profit on top of that would be a bonus. Then, there's the tax benefits, which I'm still in the process of researching. But, from some of the folks around here that I've spoken with, it seems like there are a TON of write-offs related to "farm" work & equipment. Since I'll probably be taking a "Loss" for the first several years, that'll be a great tax writeoff, not counting the depreciation of my tractor & equipment.

5) A guy I've been speaking with about an hour away started hobby-farming his own 20 acres about 5 years ago. He jumped in blind like I'll be doing, and now gets about 3200 bales a year. So, he's getting 160/acre. With current prices, it's not hard to see how much profit he's turning on his "hobby." And it's a family venture for him, just like it would be for us... which is what adds a bonus too. We love to be outside working on the property, so this would be another adventure. Additionally, he plans to buy some more property and expand a bit, get some more rotation.

...

So, I hope this addresses a few of the concerns. However, if anyone has more, or has more options on better/easier/more profitable crops to grow, I'm all ears! Also, I don't know what a "Truck-Farm" is, but I've heard it twice now. Is that a Junkyard?

1) Sorta figured as much, but plowing, discing, planting, only add to your initial costs so longer till profit. Wait till you price some of that seed.

2) Want and need are actually 2 separate things. Yeah I agree you need a bigger tractor than you have for haying but the tractor you have may be great for everything else if haying was not under consideration. Tractors are an expensive cost and one you do need to look at and consider carefully. I like having my tractor as it is a convenience without question but if I were to truly look at it from a cost benefit analysis well...Sure its handy but there is a price for that handiness even on my piddly investment of $4200. Get to talking $20k or $30k with interest, not to mention the dollars your current unit has already depreciated, your next unit is going to depreciate too, let alone wear and tear on whatever you buy, and that cost does skyrocket. (e.g. Would that $100 bucks extra a month you plan to spend on a bigger tractor be more wisely invested in an annuity investment for your kids college ??? I can not answer that but a question you need to ask yourself for sure)

3) Good thing you are only hoping to cover hay equipment costs and nothing else as you go. You can manage that if you eat all other costs out of your family's budget. This goal is attainable if equipment costs are kept reasonable.

4) As for the tax write-offs. Well good luck with those. You need 20 acres or more for true IRS "farm" classification. Yes, It is possible to claim "farm" status on smaller acreages under special circumstances, but there are all kinds of special circumstances that you must meet (none of them easy) with the most difficult being you "must show a profit" either every other year or 1 year out of 3 (forget which now) and there is no way you can do that. Once you can not meet any of the special circumstances then you are done too. I explored this option with my accountants (2 different accountants actually) and no way could I do it. In short, no write-offs that I could easily utilize without some serious lying/falsifying on my part - simply not worth that risk for the peanuts involved. Even my off the books business has yet to produce more than $600 year profit after my measly expenses. (If so I would be obligated to report that profit to the IRS sorta like when you go gambling and if you hit a jackpot over $600 it is reported to the IRS as income and has taxes out of it).

5) I truly hope your business venture ends up being as successful as your friend's has been. Your friend has the advantage of being a real farmer though. Remember do not expect the current hay prices to stay where they are at currently. They will go down make sure your business model can absorb that downturn

Lastly, Truck Farm = Large Vegetable garden. No special equipment needed really. Labor is mostly all hand labor though besides initial tillage of soil. All crops are harvested and cultivated by hand. (e.g. sweet corn, tomatoes, green beens, etc.). Harvest is then either sold out of the back of your pick-up truck in your front yard, local area farmers markets, or if you get lucky wholesaled to a local grocer. By far the "quickest" way to be profitable on small acreage but lots of manual labor is required. Of course, everyone thinks haying is easy, but you about to discover it ain't all sitting in that tractor seat watching those bales come out the back. If it was easy everyone would do it. Yes there are ways to automate some of the haying process to make it somewhat easier but none of them cheap or feasible for a guy with only 5-6 acres.

 

[TSO]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

4) As for the tax write-offs. Well good luck with those. You need 20 acres or more for true IRS "farm" classification. Yes, It is possible to claim "farm" status on smaller acreages under special circumstances, but there are all kinds of special circumstances that you must meet (none of them easy) with the most difficult being you "must show a profit" either every other year or 1 year out of 3 (forget which now) and there is no way you can do that. Once you can not meet any of the special circumstances then you are done too. I explored this option with my accountants (2 different accountants actually) and no way could I do it. In short, no write-offs that I could easily utilize without some serious lying/falsifying on my part - simply not worth that risk for the peanuts involved. Even my off the books business has yet to produce more than $600 year profit after my measly expenses. (If so I would be obligated to report that profit to the IRS sorta like when you go gambling and if you hit a jackpot over $600 it is reported to the IRS as income and has taxes out of it).

I've been reading through the IRS Publication 225 (ie Farm Income) and I haven't seen anything that defines a minimal amount of property (you had mentioned 20 acres). As long as it is a farming "for-profit" venture, it is covered. There is a Hobby-Farm clause, that shows you also must make, or attempt to make, a profit. Profitability must occur in 3 of 5 years, or in Horse-activities, 2 of 7 years... OR you must show you are making attempts to improve profitability. In "for-profit" business and/or hobby farming, the following is apparently eligible for deduction:

Advertising
Bad debts
Car and truck expenses
Chemicals
Conservation
Money paid for machine work
Depreciation
Employee benefits
Feed
Fertilizer
Freight
Fuel
Interest
Insurance
Legal and professional fees
Office supplies
Rent for land vehicles and animals used in farming
Repairs and maintenance
Seeds
Taxes
Travel and entertainment (up to 50 percent)
Utilities
Vet bills

****! There is a lot to learn about this stuff!

*** EDIT *** --- Here is a Fantastic Link to a PDF showing Farm tax code: http://ruraltax.org/files/uploads/TaxGuide Small to Midsized Farms 2011 07 14.pdf

 

[LazySusanFarms]

Re: Looking to start growing & harvesting Hay - with a Compact Tractor. Advice please

We have a friend whose son started out just like this when he was still in middle school. He has grown his business to a fairly large size and is in college now but works summers and weekends. He makes most of his money providing custom hay harvesting for his customers. He can till, seed, fertilizer and harvest with traditional or organic methods. He does fairly well for doing it as a side hobby. It all comes down to what the customer needs (own use or sale) and what they will pay him. As the saying goes, its better in the bank versus the barn or at least in someone else's barn.