LOL No I did look at operating cost buy giving my SIL's boss a call (good guy). He's looking at buying hay at those prices. My SIL just did a turn around, Fargo-Dallas-Fargo. He avearged about 675 a day on the road so ok ad the extra day in......these guys are still making a heck of a profit.
A business is a busines large or small. Gouging is gouging. Now if the TX farmer is doing the bidding online, in person or with a buyer then the seller is making the money and no problem......the buyer was willing to pay the price and spent the money and the real winner is another farmer who got a very good price for his hay and the trucker/trucking company who is hired to haul it. I'm talking about the guys who are buying locally at much cheaper prices and charging that much because they can and making 150% return. If a large business was making a 150% you guys would be madder than heck and yelling for an investigation!
AS fas as knowing how to run a business...yea I do well enough to know that a company that breaks even 11 months a year and makes a profit one month a year isn't going to make it! The SIL's boss says it takes about 15K a month to run one semi and trailer for him. That includes wear and tear, depreciation, repairs, fuel, fees and wages. I allowed in my guesstamit for 10 trips at 1500 a trip for other expenses plus 1100 for fuel and wages. SO I allowed for spending on a guess of 26K a month to run the truck, buy the hay and pay the driver and you would still be making 35000 a month profit. And keep in mind those prices have been like that for the last several months! I also kept in mind that running from say Geely Ne to Dallas is a lot shorter trip, granted they are paying a lot more for hay because of the shorter turn around.
JDseller, the big nationally advertised hay auction with on line bidding near here is a bit higher (last week rounds brought 29 a bale for grass) than that but was at a local consignment auction with those prices. Also look at CL farm listings for Fargo, Brainard and St Cloud daily and those are the prices I'm seeing. Guy with the dairy (tested) quality small squares only brought 50 to the auction but said he would sell more depending on the sale price. He refused to sell anymore. Wife and I talked to him. He said that at 4 bucks a bale he wasn't making any money with having to hire help for the small squares and that he will no longer do them. Seems that no one is willing to pay the prices needed to make a profit. I don't think I would sell rounds at 20 bucks a bale except for ditch hay if I cut it. Most of the guys making hay up here are cutting back thier hay ground due to grain prices and the low local price of hay. A friend figures it cost him with his equipment and fuel, fertilizer and all about 37 bucks to make an 1800 pound bale. He cut back to 35 acres and sold the last of last years hay at 32 a bale for tested dairy quality. I think in the spring he's going to be down to about 15 acres. Just enough for him.
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