Cost per bale

[powerscol]

Just got done computing this years cost per bale - $6.08. I had a lot of material and equipment repair costs to refurbish the older equipment - learning I should have bought newer. I did not include my near new equipment as it was a 719 write off against my other income and taxes owed. I produced 920 bales this year, and lost 72 of those to rain damage, along with 42 that I did not get paid for.

My guess is next year I should be closer to my $3 mark that others have said they are at.

What are others producing standard hay bales at.

 

[2458n]

Nobody does the math or they would be buying. Did you figure in the cost of land?

 

[powerscol]

No on the land cost as I hay a lot of fields owned by others for free. I cut so they don't need to mow 3 acres.
If I did it would be out of this world. I do it for fun as I am retired.

Just like riding my horse, when I am on the tractor working, the world can pass me by as I am happy, and to me that's priceless.

 

[Soggy Bottom Outdoors]

I had this discussion awhile back on a similiar thread and I may not have the same numbers but here goes. Remember I'm from KY and it may not relate to your area an I'm using round, average figures. Lets say grass/legume hay in 1000lb round bales. 75% grass, 25% legume. Production of 3-5 tons per acre annually. To cut, ted, rake, and bale. Equipment purchase, repair, fuel, oil, grease, depreciation, insurance, $15 per bale. Fertilizer, very variable, 300lbs of 19-19-19 per acre or a 57-57-57 at $500 a ton lets close to $10 per bale(again I'm using round or average #s) Add a $1 a bale for annual overseeding, another $1 for lime. Pencil in your own numbers if you rent or own the ground. Other factors include labor, time, herbicides, hay market in your area, etc. I'm only familiar with my area, not yours. Your figures/situaton may be vastly differant and I'm not trying to encourage you one way or another. I make and buy hay. Sometimes grass in a bale is not hay, it's not much more than bedding.

 

[powerscol]

So if I add your numbers up for your 1000 lb bales your at a min of $27 a bale. I run the small squares at 55 lbs each so I would have about 18 bales to your 1. Rounding up for extra time and materials to produce the small square that would put me at roughly $2 a bale or a bit less using your costs. As I am just starting out, given the learning curve and now having rebuilt equipment to run, I am hoping my $3 costs holds - at least for planning purposes.

Am I thinking correctly, or am I out of my head

Hay around here is $6 to $8 on the small squares ($12 at feed store for grass/alfalfa ) or between $80 and $150 for large squares (920 lbs to 1300 lbs)- this is for good quality horse hay. Cow hay is at the bottom end of those numbers $2 to $4 for 2 string.

 

[Soggy Bottom Outdoors]

I think you are on track with your numbers. But I know nothing of raising hay in Colorado or the hay market there. Can you produce 3-5 tons annually? What profit margin are you expecting? Do you need to pencil in trucks/trailers for delivery? Buildings for storage?

 

[powerscol]

The cost per bale is $your mom!!!! :cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2::cool2: get rekt noob

Can someone explain this comment for an old guy?

Soggy - don't know about the 3 to 5 ton mark, but I may have gotten close with last years total. I am doing this for fun as my custom baler quit doing the small lots in the subdivision. I am retired and have other income. They are all 3 acre, irrigated with a house and large 2 acre fields that some are having me cut and take the hay. I get between 15 and 30 bales per cutting per lot, with two cuttings possible. It all depends on who asks. I need about 150-200 bales a year to feed my horses, the rest is for sale.
PS if your out this way drop in - I can always put a pot of coffee on and show you my 3 acres of weeds:thumbsup:

 

[Xfaxman]

Can someone explain this comment for an old guy?

---------

It is from a young guy, he just joined today and this post got deleted by a Moderator.

Rekt means get drunk: https://www.google.com/url?sa=t&rct..._xNBPGzl1mddGx_iRtT7YSg&bvm=bv.89947451,d.cGU

Here is his other weird post about an internet game site: http://www.tractorbynet.com/forums/rural-living/334547-evan-bergster-bergo-lets-get.html#post4099525

 

[powerscol]

I was wondering, especially the $your mom.......just what we need here too.....NOT!!!!!!!!!!

Hopefully the Mod can set the young man straight. Hopefully he can learn something.

On edit - looks like the other post was removed too.

Thanks Moderator - appreciate the help.

 

[Lastkidpicked]

Powerscol, Your cost per bale will continue to go down as you get your equipment into shape, and hopefully get down to the $3 per bale that you hear others doing.

You are probably headed to the same conclusion as most when it comes to haying small parcels-- you just cannot make it pay. Once you figure your costs, then add in a small amount for your time and trouble, you would have to charge more than the price of just buying hay.

So are there any reasons to continue haying small parcels? You bet there are:

1) The enjoyment of getting out there with your tractor and doing something productive.
2) The quality control that you have with the hay you feed your horses-- you know the quality of the hay better than anybody else if you are the one baling it
3) It is easier to justify upgrades to your equipment and implements-- you are spreading the cost among several fields
4) Exercise

Even if you can't turn a profit, there are still good reasons to do it and I support you going out there and getting the job done.