Buying Advice Should I invest in haying equipment?

[tbergman]

We have some investment property that can be hayed (around 10 Acres on one plot and around 40 on another). In this area, hay service costs around $20 per round bale, but hay sells for around $35, which does not make it worth much. I have two small tractors (30 hp Kubota, and 46 hp Branson) and a couple of trailors, so we could even deliver. I am semi-retired and like operating the equipment, so I am thinking I might buy a mower, rake and round baler and do it myself. The service guys are always too busy to mess with a tiny guy like me, and most of them would not want to hay some of the areas I would like hayed because they have trees and can be a little tight. I would not mind, since if I do not get the hay, I am going to have to mow anyway.

With all that in mind, what will it cost me to get the equipment? Does it make sense? I am 71, in good health, but probably only have a few more years to be able to handle this kind of work. I think it would be very satisfying, but cannot afford to be stupid with my retirement money...

Any and all opinions will be greatly appreciated.

Tom

 

[Slowpoke Slim]

I guess I don't understand your statement "hay service costs $20 per round bale". Are you saying that the guys coming to cut and bale your field are charging you $20 a bale to do it?

 

[EddieWalker]

I've been thinking about doing this too, but for me, then numbers do not add up. I buy 30 bales a year at $50 and there is no other cost, upkeep, repairs, fertilizer, weed and bug control involved. The people that I've bought from all sell hundreds to thousands of bales a year. At $1,500 a year, it's not possible to live long enough to break even. And then after you run the numbers, there is the time involved in taking care of it, cutting it, baling it and then getting it to where you will store it or sell it from. There is a lot of hours involved in all that, and that's if all of your equipment is working properly.

Eventually I'll be buying twice and hopefully 3 times as much hay as I do now and my priority is more towards building a dry barn to store it, and then having a dedicated tractor to move it around my place. For me, those numbers make a lot more sense for my place.

 

[Carl_NH]

Haying is a lot of work and investment in time and machines, if you buy used its probably a $10K investment for Baler, Mower and rake then the maintenance. Assuming you have $10K invested it will yield maybe $6-800 a year or enough to have 30-40 round bales of hay done for you to sell for a bit of profit.

On the other hand, do you have other neighbors that contract it out too? If you do make the investment, and do it for 5-10 years you probably can sell the machines for half or better of what you paid, and if you can get some smaller contract baling too that would offset your costs.

But for my $ I would have it baled and sell for a small profit / break even.

 

[tbergman]

I guess I don't understand your statement "hay service costs $20 per round bale". Are you saying that the guys coming to cut and bale your field are charging you $20 a bale to do it?

Exactly. A few years back, the guys would cut and bale on halves, but the best deal I have recently heard of is 3/4-1/4, where the landowner gets 1/4, and most will not do it for any share--just for money.

 

[Trillium Farm]

We have some investment property that can be hayed (around 10 Acres on one plot and around 40 on another). In this area, hay service costs around $20 per round bale, but hay sells for around $35, which does not make it worth much. I have two small tractors (30 hp Kubota, and 46 hp Branson) and a couple of trailors, so we could even deliver. I am semi-retired and like operating the equipment, so I am thinking I might buy a mower, rake and round baler and do it myself. The service guys are always too busy to mess with a tiny guy like me, and most of them would not want to hay some of the areas I would like hayed because they have trees and can be a little tight. I would not mind, since if I do not get the hay, I am going to have to mow anyway.

With all that in mind, what will it cost me to get the equipment? Does it make sense? I am 71, in good health, but probably only have a few more years to be able to handle this kind of work. I think it would be very satisfying, but cannot afford to be stupid with my retirement money...

Any and all opinions will be greatly appreciated. Tom

Considering your age & acreage you need anything that would make it easy (physically) and it will have to be an "activity as it will never pay for you. If these premises are right go at it and enjoy the rewards and frustrations. You'll need the right tools though and even going used you need good equipment that doesn't break down. I see an investment of $10K minimum, if round baling you may also need a more powerful tractor.

 

[tbergman]

Considering your age & acreage you need anything that would make it easy (physically) and it will have to be an "activity as it will never pay for you. If these premises are right go at it and enjoy the rewards and frustrations. You'll need the right tools though and even going used you need good equipment that doesn't break down. I see an investment of $10K minimum, if round baling you may also need a more powerful tractor.

I wondered about the tractor. What hp does it take to drive a round bailer?

 

[Trillium Farm]

I wondered about the tractor. What hp does it take to drive a round bailer?

I don't round bale, so I can only relate what I've observed and heard and here it goes: you'll need a min of 90hp at the PTO plus a certain amount of frame-weight depending on the bale-size, also if the land is hilly you'll need more hp/weight. Most of the people I know round bale with tractors between 110-130 hp. You have to consider the weight of baler & bale. Now there are mini round balers that your tractors could handle, but they cost almost as much as a reg RB with hardly any resale value. I know how you feel Good luck

 

[TnAndy]

Can't say for you, but one of the happier days of my life was the day my square bailer went down the driveway to someone's else's house.

 

[Jchonline]

We have some investment property that can be hayed (around 10 Acres on one plot and around 40 on another). In this area, hay service costs around $20 per round bale, but hay sells for around $35, which does not make it worth much. I have two small tractors (30 hp Kubota, and 46 hp Branson) and a couple of trailors, so we could even deliver. I am semi-retired and like operating the equipment, so I am thinking I might buy a mower, rake and round baler and do it myself. The service guys are always too busy to mess with a tiny guy like me, and most of them would not want to hay some of the areas I would like hayed because they have trees and can be a little tight. I would not mind, since if I do not get the hay, I am going to have to mow anyway.

With all that in mind, what will it cost me to get the equipment? Does it make sense? I am 71, in good health, but probably only have a few more years to be able to handle this kind of work. I think it would be very satisfying, but cannot afford to be stupid with my retirement money...

Any and all opinions will be greatly appreciated.

Tom

Run the numbers. Figure out how many bales you can get per year, sale price..then subtract cost of equipment AND upkeep. With only 50 acres I am pretty sure you are going to find it will not be financially worth it. However if you have the $$$ and want to do it for fun then have at it!