Buying Advice Should I invest in haying equipment?

[attract her]

tm,
a) Good question.
b) I'm ABSOLUTELY not an expert on it. But
c) offhand I'd say no. Seems like your risk of not breaking even has high probability. Why take the risk, when you can stay home and watch Oprah?

BUT !!

Let's take it "where the rubber meets the road".

If you're serious put together a business model and present it to your banker. S/He's the expert. They can look over your prospects, and give you their professional opinion. Bear in mind, if they approve the loan, you're not required by law to take it.

I'm guessing most bankers would say no.
I don't know how much time it takes to cover 50 acres. But if it's an hour an acre, that's a little over a 40 hour work week's worth of work. Difficult to make equipment pay for itself when it's idle over 11 months a year.

 

[woolyAcres]

We just rolled 60 4x4 bales last week in an afternoon using our RX7320 (63ish HP PTO); we've actually run it with our NH TC45 in a pinch once. You don't need 90hp to run this baler: Krone Bellima F 125 | F 130

If this kind of work is something you enjoy than it's not simply a dollars and cents calculation. If this is only something you'll do because you'll come out ahead on $$, it's going to be hard to come out ahead.

 

[CobyRupert]

You can get your paper and pencil and calculator out and do the math. As others have said, it it's hard to justify on paper, but only you can say how much $ is it worth for YOU to control the schedule & the quality.

You would decide when to cut based on your availability, or your gamble on the weather, not someone else's.
You take the gamble on when to cut, how long to let it dry, when to bale, how many cuttings, etc..

It's also you out there busting your 70 year old *ss.

....what each of these is worth (in terms of money) is hard to quantify.

 

[foreman Etexas]

As someone who has done it several years I would say no. Unless have a market for the hay or feed your own livestock,I wouldn't. Haying isn't easy and constantly working on something. If you can get someone to bale for $20 a bale and resale for $35 take the $15 profit lol.

 

[/pine]

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

Instead of jumping in with both feet...keep some feelers out for a small hay operator that is getting out...you can possibly find an exceptional deal on everything you need at much less than trying to piece meal a set up or buy new etc...you might also find another small operator that you could partner up with on seat time...I doubt you are the only one with your size land that finds it hard to get a big operator to mess with...

Good luck...

 

[big bubba]

unless you have money to burn & want to run a hay operation for fun at a loss, i'd say yes
the only way i could justify hay equip would be to inherit it

 

[RustyA]

If you really feel haying a small acreage like that would be fun here are some points to ponder...To keep your investment down look for a 9 ft mower/conditioner, 8 wheel rake, and 4x5 baler that your 47 hp tractor can handle. You will need to be handy as older used equipment will need maintenance and repair. On the plus side when we got out of haying I sold the above items 10-15 years later for a little more than we paid for them. Good older equipment does not depreciate as long as it's taken care of. If you are not handy I would not consider it as the price of old equipment is having to repair it as needed...which is usually when you have hay laying down.

 

[fishheadbob]

Everyone is using round bales in their posts; there are always small square balers. Horse people like to use them for their stock. They're an awful lot lighter, easier to handle and put up. A used 9 foot mower conditioner, rake or tedder, and 2 or 3 kicker wagons might not break the bank. They won't require as much horsepower as well.
My thoughts are first to see if your area has customers for small bales, and shop around. See what's out there at dealers and auctions. My experience was that used hay equipment tends to hold its' value well if in good shape. I have a neighbor age 78 who puts up 4 or 5 thousand small square bales with a JD 24T with a kicker, a real oldie but goody. Most of it goes to horse people who do their own unloading and have to have the wagon back the next morning. He makes new customers put a deposit on the wagons and have to get them back by noon next day. You also have to have some mechanical ability. Rule #1 of farm equipment is that if you use i, it's going to break.

 

[zzvyb6]

Nobody's mentioned the W99 advantages. I've lost a LOT of money in the hay business over the years, but my welders, compressors, torches, trailers, windmills, tools, barn roof, truck for hauling and paint etc. are all part of creative financing aspect of hobby farming. A creative accounting company and an agricultural tax designation is worth a LOT more than any of the costs mentioned so far. Depreciation can sure be a batch ! Property taxation is an eye opener for all who ask.

You got to get in the game to play. Otherwise, you just have an expensive hobby. Maybe stamp or Barbie doll hoarding would suit you better. How about NASCAR diecast collecting? It should be in there, too !

 

[BoylermanCT]

I would look at square bales for horse owners. My FIL hays 14 acres. He gets 1,000 bales from 2 cuts on a good year, each cut takes 3 days. They sell for $6 each. At $6K a year, the hay should pay for the equipment in a few years. He has a few regular customers who buy all his hay each year. He has to mow the fields anyway, so why not sell the grass.