Cost of baling forage

[mclogan]

We run 120 cow/calf pairs and 25 adult horses on about 2,000 acres - 1/3 pasture, 2/3 converted farmland. We calve on grass, stockpile forage, rotational graze, swath graze - consequently feed bales for about 100 to 110 days per year. We would prefer not to own a lot of iron or provide more labour, so up to now have used reliable neighbours to bale our hay on a 60 (baler) / 40 (landowner) share basis and greenfeed 50 / 50 share basis.

Our question: Is share basis the best way to meet our needs cost effectively or should we be striving to enter into a custom cash arrangment per bale and keeping all production or sourcing most feed from another producer? Of course we are also looking at alternate nutrition sources such as DDG's, etc. but for now we need to solve this before expanding any more.

[bluefargo]

I am approaching this from the point of view of the landlord.
Personally I think you give away a lot by having someone put up your hay on shares. The only reason I would have my hay done on shares would be because I didn't have time to do it myself. Or don't want to invest in any haying equipment.

You might find someone who will do the job on a custom basis which I think would be to your advantage. I also think there are lots of years you can buy hay cheaper than you can grow it yourself but that does leave you vulnerable at times.

I only have hay because I was in the alfalfa seed business and like to break up seed production with hay.
Most years I just didn,t have time to put up my own hay. I had a neighbour do it on a 60/40 share. I really didn't make any money those years.

The advantage of getting it done on shares is that it does give the guy doing the baling good incentive to get the job done.

This year I put my own hay up (1st cut) because things were so late I seemed to have a little extra time,.
I had the 2nd cut done on shares because it came at harvest. This will be my last year in the hay business.
There is just no money in it most years.
Since you are in expansion mode I think I would want to keep the ability to put up some of my own hay.

[dfarms11]

no doubt getting it done custom is the cheapest way to go. The only drawback is getting someone when you want them. Thats when the premium pd through a crop share (giving away more hay than you should have to)is worth something.