greasemonkeyok
Veteran Member
Valid point Steve. Some of us are happy cause we're dumb.
Valid point Steve. Some of us are happy cause we're dumb.
WOW!
Ok, how big of a trailer would I need to haul it all in one load?
I'm not sure if I am serious yet or not... But... WOW!!!
David
WOW!
Ok, how big of a trailer would I need to haul it all in one load?
I'm not sure if I am serious yet or not... But... WOW!!!
David
Excuse my language (economics), but here are two ways that you could evaluate the economic feasibility of making your own hay.
The first (and simplest) is to compute the number of bales that you would have to bale yourself each year in order to just breakeven versus buying hay, Q*. The formula is Q* = FC/(P-AVC), where FC is fixed costs (annual equipment ownership costs and the prorated costs of establishing the hay fields) measured in $/year; P is the price you pay when buying hay measured in $/bale; and AVC is the average variable cost of producing hay (fertilizer, lime, twine, equipment operating cost, etc.) measured in $/bale. If Q* is greater (less) than the # of bales you buy each year, you are better off buying (making) hay. Here is an enterprise budget that you might find useful in estimating FC and AVC for your individual situation: http://www.clemson.edu/extension/aes/budgets/files/fescue.pdf
The second is to compute the net present value (NPV) of an investment in hay equipment. You would need to compare your initial investment to the discounted value of the after-tax cash flows associated with making versus buying hay.
Steve
I have 60 acres of hay meadow myself, and take care of another 35 acres for a neighbor. I have all of the equipment listed in my signature, and I'm still paying a note on the two newest tractors. (the rest is paid for)
After using Steve's formula, the only viable alternative that I have left is to shoot myself!![]()
:laughing: