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How much will the horse people pay for hay?

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IA Farmer

01-06-2008 20:27:22

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Just trying to decide if I should tear up any hay fields for corn/soybeans or not. I started the year selling square bales of 1st cutting mixed hay for $3.00 and ended the year getting $5.00 for the 5th cutting. I am just about sold out! I've never seen demand like this before. At what hay price will the people quit and sell the horses? Thanks for any thoughts.

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pdz180

01-07-2008 15:45:25

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

Last year in missouri was the ice storm, this last summer it was the drought, I know several farmers in my area sitting on hay until we get bad weather. 5x5 round bales are going from $40.00 to $85.00. The closing of the slaughter houses have put the horse market at a low. Good horses are given away or sold for $100.00 to $300.00 at auctions. Thank goodness there are a few good people left in the world who are not trying to over price to hay buyers. In a good year, we have plenty of hay and the ones that jacked the prices out of reach for their hay will have the favor retured with us and our friends returning to the people who took care of us.

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Tradititonal Farmer

01-07-2008 10:52:43

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

I'd keep it in hay read the other day horse numbers have gone up 25% in the last few years.
Very little risk growing hay compared to grain.

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E.B. Haymakin'

01-07-2008 08:05:00

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

In lower Alabama we"ve arrived at the bottom. There are stories of abandoned, starved horses from time to time. Horses are being sold cheap, and being given away even due to the high costs of all feed. In our area $7 dollar hay has been here for 2 years. Many people are getting out of horses, only the die hards will remain. Once the area market clears the excess horse population I believe hay will bottom in our area because all the cattle fields are subdivions, and horses are the only hay consumers left. So, all the area hay producers better get rich quick because the free market thing goes both ways.

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KJFarms

01-07-2008 07:00:24

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

Here in Ky, I just had some hay trucked in from KS. Its cheaper to buy from there and have it trucked than to buy from around here-mainly because of the drought. But most of the horse people are paying 5-8 per square bale of good horse hay. With the cost of chemicals and the price of farming I don't see the cost going down at all.

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David in MD

01-07-2008 05:56:05

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

One of the comments above was just because we can get $5 per bale should we. Yes we should, potash is $350+ per ton, when I started in 2001 it was $180 per ton. Nitrogen (30%) was $240 per ton last year and I"m sure it"s bumping $400 now. Diesel fuel and twine are also up. I figure good horse quality hay should be worth as much as corn which is just under $5 per bushel contracted for next fall. I sold hay anywhere from $3.50 to $6 this year. My good regular customers paid a maximum of $5 while anyone off the street paid $6 and seemed happy to get it for that. I"ve heard $7-8 per bale elsewhere. I"ve already warned everyone that hay prices will start at $5 next year. If the market is flooded with hay, which I doubt, and I can"t get my price I"ll grow corn.

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tlak

01-07-2008 05:45:45

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

I think prices are high due to drought, people are buying that probably never bought before. Even though fertilizer prices are high and may rise more, when the drought breaks, and it looks like it has here, people won't need to buy high priced hay. Anything that can grow, they can only gouge or jack up the prices for a temporary period. Tomatoes are an example of this gouging. They raise the price to over $2 lb so I figure most people do like I do, buy one for a certain meal or none at all. I think stores throw out most of these high priced tomatoes. Point is, next hay season won't have anything to do with the prices this season.

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1936

01-07-2008 05:42:36

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

One bit of advice I got from FIL was to never to be out of breath when pricing your own item.

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John S-B

01-07-2008 05:34:51

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

Anybody know what the weather forcasts for this year is? Any droughts predicted? I don't own any fields myself, but I do bale for some neighbors.

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Kestrel in CT

01-07-2008 05:34:28

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

I'm no horse expert but here's a piece in today's Wall Street Journal that gives a good insight into the problem
Looks like the costs, including hay, are starting to catch up with the owners.

Horse costs

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suptscottyb

01-07-2008 10:07:53

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Re: How much will the horse people pay for hay? in reply to Kestrel in CT, 01-07-2008 05:34:28

This is a great link. Everyone who is getting rich selling horse hay should read this! Of course you won't. The Govt. shut down the slaughter houses in 07 so now someone has to feed all these aged, useless and now semi-starved horses. I know your costs are going up - but don't gouge us, !@* it, enough said.

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Stinky Cheese

01-07-2008 05:29:26

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

I don`t see a limit to what they will pay. Look at what some of their cars and trucks cost, and their kids tennis shoes!

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Tom in Mich

01-07-2008 05:15:09

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

My wife and I have horses and also my daughter and soninlaw. We cut our own hay and sell any surplus to help pay for grain, medical upkeep, and trimming. Last year we got $2.75 off the field and did not have to pick anything up other than our own. Did about 3000 bales.

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johndeereman

01-07-2008 05:03:20

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

my wife has one of those horse pets but it works for me too cause i like my tractors and equipment so i make the hay round here if you dont have a creek flat nobody wants to farm it so i got people knocking on my door trying to get me to take the hay off so they dont have to brush hog it i do as much as i can i keep equipment goin anyway so i guess all im out is my time and fuel alot cheaper than buying it

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Dave from MN

01-07-2008 04:08:44

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

All the hay that I have I bought for $2.00 or less per bale from a friend. We sold ALOT of it for cost to a few people around here that could not find reasonable hay, and cant afford $5-$6 hay. So now here I sit with a possible good deal on 6 nice bred cows and a bit short of hay to get them to summer, called a friend and he'll still give me $2.00 hay, even though he could say no because he can sell it all right now for $4.00 or a bit more. A friend in need , is a friend indeed!

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Dave2

01-08-2008 00:41:01

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Re: How much will the horse people pay for hay? in reply to Dave from MN, 01-07-2008 04:08:44

Everything we do and say will surely come back to us in the end. It's just our choice if it pats us on the shoulder or bites us on the butt. I don't imagine you and your buddies will ever have trouble looking in the mirror. If expenses go up 30% over 3 years, jumping prices 300% over a couple of months doesn't quite match. Let your conscience be your guide. Got a guy over here (Germany)that did that a few years ago when we had a hard winter followed by a real dry spring, that cuts his fields and and leaves most of it lay, only baling what he can use. Good 1st cut hay here runs about $100 a ton (+/- depending on the bale size/labor involved).

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Spook

01-07-2008 00:06:33

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

I think that since the horses are pets, people will spend quite heavily to support them. But the price also reflects inflation, caused by the increased price of fuel, fertilser, and everything else that goes into any product. It's not like you just got an extra $2 a bale profit. And even if you did, more power to ya!!!! Making hay is not for sissies!!

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Tom in TN

01-06-2008 22:41:47

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

IA Farmer,

Here's an interesting thought:

Does the fact that you CAN sell your hay for $5.00 per bale instead of the $3.00 per bale that you were selling it for last Spring, mean that you SHOULD sell it for $5.00 per bale instead of $3.00 per bale?

Tom in TN

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That is ridiculous

01-07-2008 12:21:15

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Re: How much will the horse people pay for hay? in reply to Tom in TN, 01-06-2008 22:41:47

Yes farmer buy your inputs higher and take less for your product like no one else. Thats the mentality that keeps us broke. If you sold 500 acres of hay at $5 per bale you wouldn't equal a salary of a common worker anywhere in the city yet look at the investment. That has to be my vote for worst statement I have ever seen on this forum.

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dhermesc

01-07-2008 06:04:50

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Re: How much will the horse people pay for hay? in reply to Tom in TN, 01-06-2008 22:41:47

"Does the fact that you CAN sell your hay for $5.00 per bale instead of the $3.00 per bale that you were selling it for last Spring, mean that you SHOULD sell it for $5.00 per bale instead of $3.00 per bale?"

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Or you could send this to hay buyers:

Does the fact that you CAN BUY your hay for $3.00 per bale instead of the $5.00 per bale market price, mean that you SHOULD BUY it for $3.00 per bale instead of paying $5.00 per bale?

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TomTex

01-07-2008 05:39:27

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Re: How much will the horse people pay for hay? in reply to Tom in TN, 01-06-2008 22:41:47

What are you suggesting? That he should sell it "below" the current market price of $5 per bale? Selling and buying at the going rate is what free market is all about, or at least that is what I think. Tom

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kyplowboy

01-06-2008 21:31:47

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Re: How much will the horse people pay for hay? in reply to IA Farmer, 01-06-2008 20:27:22

Round here there was alot of adds in the paper late in the summer "Free to good home, good trail horse, kid broke". Never seen that before. Anybody around here that still has a horse is going to pay what ever they have too. The horses here don't look too good right now, most are eating what my cows would in a good year. I know one guy who sell horse hay and he is putting up a big barn for hay, $3 hay in May, $8 at Christams won't take long to pay for it.

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skyharborcowboy

01-06-2008 20:54:46

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Re: How much will the horse people pay for hay? in reply to Lanse, 01-06-2008 20:27:22

Here in Arizona we are paying $9 for a 110# bale of Excellent Alfalfa. It is just going to get more expensive with more corn fields popping up!

Joe

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