Fair Price/Going Rate for cutting, baling, and stacking hay

SLHawkins · Apr 19, 2012

Some neighbors down the road from me would like for me to cut their fields for them. What would be a fair price to charge for cutting, baling, and stacking the hay for them? Is it best to charge by bale, hour, or acre? I have my own MoCo, but will use thier square baler (while it lasts...). I checked a few other post on hay operations, but did not see any information on how much folks charge to cut, bale, and stack.

Also, if there is anyone looking for hay, the have about 1000 bales of hay that is a couple of seasons old they'll let go for about $3 a bale. And, they have another 1000 or so bales from last season for about $6. Both lots have been stored under shelter on pallets.

Thanks,

Hawk

smstonypoint · Apr 19, 2012

Hawk,

Custom rates can vary considerably across regions. For example, the custom rate for mowing/conditioning in Iowa recently averaged $12.65/acre, but ranged from $7 to $18/acre: http://www.extension.iastate.edu/publications/fm1698.pdf

How do you define a "fair price"? One that covers your costs (variable and fixed)? One that covers your costs and provides you with a profit? Regardless of how you define "fair," you need to know something about your costs. This enterprise budget template from NCSU may give you some guidance in estimating your costs: http://www.ag-econ.ncsu.edu/extension/budgets/hayhavest_conventional_84-1.pdf

It might be worth your while to check into the provisions of the insurance policy for your ag. equipment. Some policies may limit coverage to personal use.

Good luck.

Steve

suzy · Apr 19, 2012

Around here, the haymaker takes 60% of the crop and the farmer gets the 40% share. If it's a dry year, I buy the neighbor's share, if it's a wet year, like last year, I'm good with the 40%.

SLHawkins · Apr 19, 2012

Steve,
I appreciate the info. It's just what I was looking for. I should be good on the insurance, but I will indeed look into it.

Thanks!

Hawk

Diamondpilot · Apr 19, 2012

Around here, the last time I did it was 2010, I got my 8 acres cut, raked, baled, and dropped on the ground for $.75 per bale. I then loaded it myself with the help of a buddy and his wife driving the truck, and sold it for $2.50 per bale.

Chris

schmism · Apr 20, 2012

I had my 3 acers cut, with a mower/conditioner, tedded, baled and stacked on my trailer.

small sq's that are gathered and dropped as a group then picked up with a FEL as the group and placed on my trailer.

the fee is 50% of the bales. I sold my half for $3 a bale.

Few people will mow/ted/bale for just $$. Most want the share for there cows around my part.

SO essentially i pay $1.5 per bale for cut/ted/bale. In my neighborhood you cant get anyone to touch your feild for less than $1 a bale. (small sq)