Square Baling and Hay Market

[Niji]

Last year I expanded the hay making and had surplus to sell. I have horses, and put up small square bales of mixed hay, and my farrier knew from our conversations I was going to have extra. She knew the quality of my feed from past experience, and she and some of her horse buddies showed up while I was baling 1st cutting and bought everything extra I had right off the ground, and would have bought another thousand bales if I'd had it. So horse connections, at least in Virginia, can spread the word like wildfire if you've got a reputation for high quality hay and the price is in the ball park.

Some of my first cutting ended up catching some rain, so I tedded it, dried it out, raked it, and round baled it to sell for livestock other than horses. An ad on Craig's list was all it took to be flooded with inquires, and I had no trouble getting it sold.

However...while the 1st cutting last year was average, the drought killed us during summer and we had no 2nd cutting, which no doubt amped up the interest as supply was short here.

Also, I've got 25 acres of hay that is orchard grass and white clover, and I guarnteed it not to have fescue, and for horse owners with bred mares, that is essential, as fescue can cause a mare not to lactate. So, having mare hay available can also put you on the map with horse owners in a big way, and boost clientele.

 

[mjarrels]

Another option, if you have a local livestock sales, they buy square bales year round in my area.

mark

 

[matt21]

I have been using craigslist to sell some of mine. But had no luck with it. I have been thinking about listing it on Hay Barn classifieds. Most of what i have sold has been to neighbors or friends. I'm looking into different magazines or newspapers too. Thanks for all the info.

 

[Hoosier Hay Man]

I have been increasing hay production for the last 7 years. Here are a few things I have done to try to only produce what my market wants. My market is all local with 85% repeat customers. I have some customers who will pay every delivery and are willing to pay for high quality no matter what the local price is. I have a few who like to spread it out monthly as they have income to pay. They are good customers just don't let them get extended more that you are comfortable with. What I am saying is anything you can do that is a value add for them will keep them coming back. I have learned there are some that if you lower your price they know you will negotiate and they may not be the best for you in the long run. Offer them a free sample bale and if they like it stick to your price. Send them a Christmas Card and keep in touch before the season starts to see if they are wanting to buy more form you. Communication with yuor customer is vital.

If you haven't did a business plan yet I would suggest doing one. The old saying is fail to plan and plan to fail. It will force you to answer the marketing question and define who is your customer. Start a hit hit list of customers that would like the type of hay you are producing. A survey of any current customers you have or any potentional customers would be helpful in making a marketing plan as well. I have never been happy with using auctions. Not always but some times it only attracts bottom feeders who are interested in flipping your hay for a quick buck.

Brokers are an option but will add complexity to your marketing plan and adds risk. There are a few brokers out there that have even scammed the big hay operators once in a while.
I think when you have skin in the game no one will protect your interest like you. I am never sure who's side the broker is on and I am sure it isn't mine nor the end customers. IMO brokers would only be a small percentage of sales if any at all in a marketing plan to limit the risk.

Knowing your cost is important to so you can price your hay for a resonable return on investment.

Here is University of Kentucky spread sheet that may help with cost. There are some other good ones out there if you google them.

http://www.uky.edu/Ag/AgEcon/pubs/software/improvedhaybudget.xls

Here is a good web site that might help answer some marketing questions as well.

HayTalk - Hay & Forage Community

I do love making quality hay and satisfying customers. Believe it or not making 10,000 bales is easier than selling them some times. Lack of a marketing plan is probaly the number one reason for a business failure. Good Luck!

 

[jimg]

HHM: When you say quality hay do you know that by having it tested or ??? Do any of your customers require/prefer test results? Around here tested hay goes first (as long as its hi quality). Do any of your sales involve feed value being set on the feed value?

 

[RichZ]

My local cooperative extension has a web mail list that most of us farmers in our area subscribe to, and it's free. We all advertise on it. I've bought and sold lots of stuff on that list. Also if you belong to your state's Farm Bureau, most states have a monthly (at least) publication with free classified advertising for members. I've also sold lots of stuff on that, as well. Someone else mentioned Craig's List. I've had a lot of sucess with that, too.

Those are good free ways to contect with other local farmers.

 

[Hoosier Hay Man]

HHM: When you say quality hay do you know that by having it tested or ??? Do any of your customers require/prefer test results? Around here tested hay goes first (as long as its hi quality). Do any of your sales involve feed value being set on the feed value?

I have only had hay tested once. I entered in Forage Days last summer and got an official test. I got lucky and it won. I don't have the test results handy to give the RFV.

My customers go by what it smells like and looks like mostly and if their animal eats it well.

They are either in the dairy goat business or beef cow business. I do sell to the horse market also. I own several dairy goats and believe it or not they can be very picky eaters, if my goats eat it well they believe theirs will. I have quarenteed to replace any hay they are not happy with. I have only had to exchange one load.

They all prefer to go by what it looks like. Leafy if its alfalfa, baled dry if its grass, mold and dust free of couse. Not always easliy done.

Word of mouth once you are established works the best. Also during the drought a couple of years ago I refrained from over charging like many were. It sure helped me charge a little more last year for high fertilizer and fuel cost. Many of them remembered and wanted to make sure I was getting enough to cover my cost. They didn't want to lose their supplier any more than I wanted to lose their business. After all it is all about people.