2005 Year in Review

What is the value of hay standing in the field?

What is the value of hay standing in the field? That is a commonly asked question by both producers and landowners at this time of year.

Many times the question implies that the landowner wants to price and sell standing hay to a producer that will do all the harvest work and take the hay. One method to determine price or value is a formula that considers the price of baled hay per ton minus the harvesting charge per ton plus a risk charge per ton (borne by the buyer) with the difference being the value per ton standing in the field.

For example, if the price of baled hay was $75 per ton, if the harvesting charge was $30 per ton, and if a risk cost was $10 per ton, the value of standing hay would be $35 per ton. The producer would pay the landowner $35 per ton of hay harvested. Representative bales need to be weighed so the tonnage removed per acre can be calculated.

To help with the calculations, machinery cost estimates for various forage operations are shown at this University of Illinois web site farmdoc

For instance, the cost of a pull-type mower-conditioner is $13.70 per acre, whereas cost for a rotary mower and wheeled rake is $12.40 per acre. The per acre baling cost for a small square baler and for a 1,000 pound square baler is $19.10 and $15.20, respectively. These costs include tractor overhead, implement overhead, fuel-lube, and labor.

Baling costs can also be stated on a per bale basis. Cost for a 50-pound square bale and a 1,000-pound square bale is $0.43 and $7.60 per bale, respectively. These costs are based on a yield of 1.3 tons per acre. Costs per bale tend to be more stable for level of production than are costs on a per acre basis.

If one does not have access to Internet, machinery cost estimates (for forage and other field operations) are available at Extension offices.

by  Editor, theCity1.com
May 23, 2005