Thinking about getting into haying for my own use and for small $$$

[MotorSeven]

Ok, Moss, here is my story:

I have 21ac of bottom land hayfields, neighbor has about the same. After several years of having guys agree to hay my place then not show up, I finally got a fellow to do it....kinda. I was GIVING HIM THE HAY FOR FREE, only asking that he cut it 3 times(bottomland here can go 4 cuts a season). Well, after a couple of he slacked off and missed a few cuts and I had to brush hog a coupel of pastures because the weeds tried to take over.

My neighbor was having similar issues, so we decided to go in together, purchase used equipment and do it ourselves. We went with a 4x4 round baler, 8' tedder, turkeytail rake and a brand new HayMax Drum cutter....total investment: $7,500.

Last summer we rolled about 350 bales. Baler broke(main shaft went fubar) costing $700 in repairs, almost a month of downtime resulting in having to hire another neighbor to bale for us costing $100. I wish we could have afforded a NEW BALER....but $17K is a big chunk to bite off.

Anyway, after fuel, expenses and parts we made a little over $1K selling bales for $8(NO LABOR figured in). Also last spring I built part of a 56x80' hay barn...16x80' to store them in. If you can't store you hay in the DRY...don't even consider it.....too much loss to wet. I store mine up on pallets, but be careful, in the winter the pallets can freeze to the ground. If you drive over them to get needed hay, guess what?...broken pallets and nails in tires.I was forewarned about this so it didn't happen yet.

Now, with a small tedder and rake that means you have to make twice as many passes to get the same result as a folding tedder and V-rake. Twice the fuel, twice the seat time, and twice the opportunity to break something. I am now looking to up-grade to a larger tedder and rake...my time is valuable:thumbsup:

The Drum mower has been a wonderful thing....High range, and wide open(smooth pasture only) and the thing just slices through the grass like it ain't even there. 6 itty bitty cutting blades that cost under $2 each and are reversable, and change out in 10 min(all 6).

The baler is an old Hesston 530. After spending two days rolling around under it in the hot sun and 3 weeks+ waiting for parts it is now making good tight bales. We have our fingers crossed that we can get through this season without a breakdown. I really want a Krone 4x4 baler(no belts, it's a gear driven drum), but like I said....$17K

My recommendation...? Go round bale. Way way less work than square. And be prepared to fix your own stuff, because it breaks, and if you hire soemone to fix it, you will be in the hole quick.

This year our price goes to $10, and we already have over 200 bales sold....the pressure is ON:laughing:

 

[blueriver]

Anyway, after fuel, expenses and parts we made a little over $1K selling bales fro $8(NO LABOR figured in.

This year our price goes to $10, and we already have over 200 bales sold....the pressure is ON:laughing:

Are you serious ... $8 a bale and this year $10 a bale ??? You did say 4x4 rounds?? Isn't that awfull cheap?

 

[MotorSeven]

Are you serious ... $8 a bale and this year $10 a bale ??? You did say 4x4 rounds?? Isn't that awfull cheap?

Yep, we were scrambling to build a haybarn. If they sat out you can't give 'em away. Also, last year was a banner year here for hay...everybody had it and we did not want to sit on it. There are 6 rolls left in the barn(part of what I held back for my animals), so I think we did ok:cool2: "stick and move"

The evil master plan is to complete the barn, fill it with 500ish rolls. Then have a customer base that take what we roll right off the feld. When another drought hits bump the price but keep it lower than anyone else. Last drought, 4x4's were bringing about $40, so we would sell in the high $20's. We do want to be fair and make a little money at the same time.

 

[Iplayfarmer]

Yep, we were scrambling to build a haybarn. If they sat out you can't give 'em away. Also, last year was a banner year here for hay...everybody had it and we did not want to sit on it. There are 6 rolls left in the barn(part of what I held back for my animals), so I think we did ok:cool2: "stick and move"

The evil master plan is to complete the barn, fill it with 500ish rolls. Then have a customer base that take what we roll right off the feld. When another drought hits bump the price but keep it lower than anyone else. Last drought, 4x4's were bringing about $40, so we would sell in the high $20's. We do want to be fair and make a little money at the same time.

DANG!! I could probably pay the freight for a semi truck to haul some of your hay back to me. Grass hay is selling for $180 a ton around here, and that's if you look long and hard or dicker fiercely. I'd be happier than ever to be buying hay for 5 times what you are selling it for.

 

[pacerron]

Yep, we were scrambling to build a haybarn. If they sat out you can't give 'em away. Also, last year was a banner year here for hay...everybody had it and we did not want to sit on it. There are 6 rolls left in the barn(part of what I held back for my animals), so I think we did ok:cool2: "stick and move"

The evil master plan is to complete the barn, fill it with 500ish rolls. Then have a customer base that take what we roll right off the feld. When another drought hits bump the price but keep it lower than anyone else. Last drought, 4x4's were bringing about $40, so we would sell in the high $20's. We do want to be fair and make a little money at the same time.

If you are making good horse hay you might get more for it selling to a transporter that takes hay south and west.
Coastal Bermuda Hay available down there causes impaction and colic problems with many horses so a lot of folks with expensive horses pay high prices for northern hay.

 

[SLHawkins]

If you are making good horse hay you might get more for it selling to a transporter that takes hay south and west.
Coastal Bermuda Hay available down there causes impaction and colic problems with many horses so a lot of folks with expensive horses pay high prices for northern hay.

--DANG!! I could probably pay the freight for a semi truck to haul some of your hay back to me. Grass hay is selling for $180 a ton around here, and that's if you look long and hard or dicker fiercely. I'd be happier than ever to be buying hay for 5 times what you are selling it for.--


David,
There's two potential customers/markets right there...I say go for it!!

Hawk

 

[MossflowerWoods]

David,
There's two potential customers/markets right there...I say go for it!!

Hawk

Shawn,

You open up an interesting thought.

I heard a number of anecdotes along this line earlier this winter when I first went looking for hay.

The local feed store trucks his square bales in from Penn and sells them for almost $8 last I heard back in Feb I think. They also stated loudly "You will not find ANY Spotsylvania (nearby county) hay of equal quality. The first time I bought hay there, first week of Jan, they were like $6 and I believe the price increase was 100% due to rising fuel costs.

I also heard somewhere that MANY folks trucked last season's hay to TX due to their drought and fires. But that is a one time situation, they will not be able to truck to those same places this year.

Clearly Fuel costs will dictate how far away you can haul profitably, and there is the other question about how "good" is hay from Mid-Atlantic (Upper South) Caroline County VA gonna be compared to true Northern Yankee hay from further north?

Maybe you and I should just become hay brokers/truckers and connect our TBN hay making buddies in the North with our TBN hay consumers in the South? Hmmm...

It is a tempting idea still...

I had dinner with a friend last night and his assessment of my Haying question was simple...

Today my horses are consuming $28/week (7 bales @ $4 today) in hay, they will eat a little less in the heat of summer so this will go down a little, but let's take $25 / week as average, that is 100 weeks to pay for the equipment ($2500) 20 weeks to pay transportation ($500) and 36 weeks ($900) to cover tractor fuel and maint of the equipment & tractor. That means in 3 years it is fully paid off and all I meen to produce is 325 bales per year (assume 2 cuttings per year here, only 163 bales each time)

Anything beyond 325 bales per year = PROFIT, and if I get more horses or a cow etc. that only accelerates the ROI.

How much land do I need to get 200 square bales per cutting? Hmmm...

 

[MossflowerWoods]

David,
There's two potential customers/markets right there...I say go for it!!

Hawk

Shawn,

We need to find/build us a big ole pole barn to store our hay in sir!

We need to add that to the calculations...

David

 

[blueriver]

I also heard somewhere that MANY folks trucked last season's hay to TX due to their drought and fires. But that is a one time situation, they will not be able to truck to those same places this year.

remember ... if its not Texas ... there is always a part of the country that will need the hay. Look at a drought monitor map ... other areas are now faced with those conditions. Good hay will sell ... private individuals and brokers are always searching for hay. In the past several years I have always ran out ... seems I never have enough.

 

[riptides]

Please factor in the weather. The past three years I have managed to get one decent cutting off my property due to drought. I am right up the road from you.

My best year, we pulled over 5,000 square bales from the front 40. It was "good" quality, but since the land had been not properly cared for, it was not a "quality" difference maker for "horse" hay types.

Since one of my kids is now educated and has a decent network she is doing the soil analysis and maintaining the pastures. We hope in another year or two to be offering the highest quality "horse" hay type grasses.

Weather permitting.

Shawn,

You open up an interesting thought.

I heard a number of anecdotes along this line earlier this winter when I first went looking for hay.

The local feed store trucks his square bales in from Penn and sells them for almost $8 last I heard back in Feb I think. They also stated loudly "You will not find ANY Spotsylvania (nearby county) hay of equal quality. The first time I bought hay there, first week of Jan, they were like $6 and I believe the price increase was 100% due to rising fuel costs.

I also heard somewhere that MANY folks trucked last season's hay to TX due to their drought and fires. But that is a one time situation, they will not be able to truck to those same places this year.

Clearly Fuel costs will dictate how far away you can haul profitably, and there is the other question about how "good" is hay from Mid-Atlantic (Upper South) Caroline County VA gonna be compared to true Northern Yankee hay from further north?

Maybe you and I should just become hay brokers/truckers and connect our TBN hay making buddies in the North with our TBN hay consumers in the South? Hmmm...

It is a tempting idea still...

I had dinner with a friend last night and his assessment of my Haying question was simple...

Today my horses are consuming $28/week (7 bales @ $4 today) in hay, they will eat a little less in the heat of summer so this will go down a little, but let's take $25 / week as average, that is 100 weeks to pay for the equipment ($2500) 20 weeks to pay transportation ($500) and 36 weeks ($900) to cover tractor fuel and maint of the equipment & tractor. That means in 3 years it is fully paid off and all I meen to produce is 325 bales per year (assume 2 cuttings per year here, only 163 bales each time)

Anything beyond 325 bales per year = PROFIT, and if I get more horses or a cow etc. that only accelerates the ROI.

How much land do I need to get 200 square bales per cutting? Hmmm...