Posted by M Nut on August 22, 2007 at 06:03:19 from (170.215.14.189):
In Reply to: Re: price of hay posted by TomTex on August 22, 2007 at 01:25:07:
TomTex, Unless the cost of making hay in Texas is much higher, I have to disagree with you. I used to sell quite a bit of hay here in MN. While I was getting my pasture fences rebuilt to hold cattle, I sold the hay off my fields, and the most I ever got for my 1200 lb bales was $20. This was about five years ago. Even now, I do some custom haying for a couple of my neighbors. No matter how I figure the price, my actual expense is less than $15 a bale into making them. Now, I don't try and depreciate out my equipment on the custom work, because I need it for my own use anyway. I also figure my time as just a "neighborly favor". So, I charge $7 a bale to just round bale, or $15 dollar a bale cut raked and baled. However, I only do it for certain people, and it is not a business by any means. My point, I think that $20 a bale hay is cheap enough. I don't expect it to be any cheaper, but I also don't think the individual is taking a lose at that point either. Heck, in 2005 I was paying $5 a bale for 1000 lb bales of grass hay. That was for 130 bales! Until 500-600 lb calves bring $2.00 a lb, there is no way I can afford more than the $30 dollars I paid this year. I even sold 13 cows first trying to get my numbers down, but it was so dry here it still wasn't enough. It was buy feed or sell the cows, and I wasn't ready for that.
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