What are the general terms and costs for leasing fields?

   / What are the general terms and costs for leasing fields? #21  
So here's my first attempt at beer math for what it would cost for folks to poke holes in (already struggling with the baler, think that would have to be $6-8K for something that will be mostly reliable and operational).

Bit of an explanation:

-Two tractors are the top left blocks and I'm billing each .3 hr/bale with the intent that the cost per hour covers operating costs .
-Incidentals are twine/wrap/pins/whatever billed at $3 per hr.
-Hrs calculated by hr/bale times the target bales just as a baseline and really a random number I figured maybe I could hit...and hopefully sale/move.
-Fertilizer is billed at $50/acre and used the worst case 4 bale an acre, or 50 acres.
-Seed is $30/acre also using worst case.
-Breakeven number is the number of bales at that price into the total cost, it obviously would require more time and associated variable costs to achieve the breakeven number of bales so it would go up it's just a data point.

Everything else is pretty self explanatory I think, at the end of the day I'm losing money baling hay just at variable cost let alone trying to pay for the hay equipment but if I keep $2k or more in hay for myself that makes a difference.
View attachment 677621

It's fun ideas to mess with over lunch breaks if nothing else

I play with figures like that all the time. If youre just getting started out, the best things to do:
Assess your market- can you actually sell enough hay to make the investment worth it?
Plan your expenses to be greater than you think-fuel consumption is amazing. Insurance ain稚 cheap, either. Repairs beyond your capability can make your heart pound.
Hay farming waits for no one- you will find yourself baling hay when Mother Nature allows, which will interrupt vacations, family functions, even church.
 
 
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