Starting costum hay making business

[Jd5203]

So, I am 16 years old and most of the farmers are getting older and wearing down, so I'm thinking about starting a custom hay business, there is only one other person that I know of around me that does this, so I may talk to him about going in with him, I can get a loan, and I have some equipment that I have found nearby, all green, which is what I've found best. Let me know what you think.

 

[pjbci]

Go for it. Be honest and fair with customers. Do your work at a fair price and they will call you the next time they need hay. Dont undercut the other guys price if he doesnt want to go into business with you, undercutting other peoples prices only bankrupts the both of you faster. And most importantly dont get into too much debt too quickly. You dont need all new or all green equipment to get started. Just buy the best deal you can find for any color quality equipment.

 

[ljohnson778]

Go for it. Be honest and fair with customers. Do your work at a fair price and they will call you the next time they need hay. Dont undercut the other guys price if he doesnt want to go into business with you, undercutting other peoples prices only bankrupts the both of you faster. And most importantly dont get into too much debt too quickly. You dont need all new or all green equipment to get started. Just buy the best deal you can find for any color quality equipment.

X2...

 

[smstonypoint]

Go for it. Be honest and fair with customers. Do your work at a fair price and they will call you the next time they need hay.

A "fair" price to you is one that covers your variable and fixed costs (including your labor rate) and gives you a profit as a return to your entrepreneurship and the risks you assume. *

There a lot of resources that can guide you in estimating your machinery costs (e.g., https://www.extension.iastate.edu/AGDM/crops/html/a3-29.html, Enterprise Budgets : Extension : Clemson University : South Carolina). You also need to take account of the costs of transporting your equipment to and from your customers.

Best wishes for success in your endeavors.

Steve

* Whether your customers consider your prices "fair" is another matter entirely.

 

[flusher]

So, I am 16 years old and most of the farmers are getting older and wearing down, so I'm thinking about starting a custom hay business, there is only one other person that I know of around me that does this, so I may talk to him about going in with him, I can get a loan, and I have some equipment that I have found nearby, all green, which is what I've found best. Let me know what you think.

What type of haying? Mowing/baling/stacking/transporting? Or the whole enchilada (discing, fertilizing, planting, weed control, mowing, baling, stacking, transporting)?

 

[Jd5203]

What type of haying? Mowing/baling/stacking/transporting? Or the whole enchilada (discing, fertilizing, planting, weed control, mowing, baling, stacking, transporting)?

At first, I'm just going to do mowing, baling, stacking, transporting, just because of the money factor, I don't want to get to far in and have it not work and be stuck with a bunch of debt. Hopefully someday I'll be able to do all of it. Worst comes to worst I will just sell the hay equipment and keep the tractor for around the farm, I'm thinking of starting with small squares just because that's what is harder for people to do, also can go to the horse people over in the valley.

 

[Ted Summey]

Your ambition is great. Have you talked with someone about a basic business plan? Small businesses fail (even farming) at a high rate, a business plan won't prevent failure, but it will help you plan carefully. I suspect a lender will want a business plan.

Just a little bit of pre-planning can help you avoid some costly mistakes.

 

[Soggy Bottom Outdoors]

When I head to the hayfield to start cutting I call my custom baler so he can be there three to four days later. He uses a Claas Rollant 66 that makes a 1000-1200lb bale, net wrapped, $10 a bale, $250 minimum. He makes several trips to my place a year. I have a check waiting when the last bale rolls out, he likes that.

 

[Jd5203]

Your ambition is great. Have you talked with someone about a basic business plan? Small businesses fail (even farming) at a high rate, a business plan won't prevent failure, but it will help you plan carefully. I suspect a lender will want a business plan.

Just a little bit of pre-planning can help you avoid some costly mistakes.

No, I never thought of that but it makes sense to do it, thanks for the insight. There should be a good bit of planning considering the costs of equipment.

 

[Jd5203]

When I head to the hayfield to start cutting I call my custom baler so he can be there three to four days later. He uses a Claas Rollant 66 that makes a 1000-1200lb bale, net wrapped, $10 a bale, $250 minimum. He makes several trips to my place a year. I have a check waiting when the last bale rolls out, he likes that.

I don't have to worry about that because I will be able to bale also, also starting with small squares since nobody wants to make them except for the people with money and who aren't able to do it themselves, but gives somebody a job.