# Pricing Hay



## John Deere Green (Mar 21, 2012)

Hello everyone,

While I am freezing away up here at NDSU I thought I'd post a question and see the general opinion.

I am starting to sell last years hay and am kind of undecided on how I am going to price it. I know that to be fair to everyone I am going to sell it by the ton and then if the customer wants that broken down on a per bale basis, I will do that.

My question is how do I come up with a price. The local auction at sauk center has a nice price listing that I can usually get close to the test numbers that my hay tested, however, if I use those numbers it seems to me it would be high because selling off the farm I am not spending the money hauling them down there and paying the auctioneer to sell them, because if I did I would be taking home less that than the posted price.

So how do you guys do it, also what should I be charging for delivery with a fifth wheel trailer and one ton pickup. In the past I have charged 2.25/ loaded mile. Too much... not enought??

Thanks,

John Deere Green


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## Teslan (Aug 20, 2011)

I price by looking at craigslists ads and other hay ads. Plus my states USDA hay report. Then I try and figure out if my hay is better or worse then the competitions. Most of the time I feel it's better then 3/4 of the competitions hay. I have indoor storage for my hay so that makes it worth more then hay stored outside, even if it's tarped. It also depends what type of bale you are selling and what is the primary type of customers in your area. If you are in strong horse hay buying area sell by the bale. If you are selling mostly to dairies and feedlots then by the ton.

As far as how much to deliver hay depends on the type of bale. If it's small bales and you are unloading and stacking at the customers place then $2.25 a loaded mile is way to little. People charge between $1.50 and $2.50 per small bale around here to do that. Then you have to be careful of where you are unloading and stacking the hay. I've had hay haulers have to carry hay 20 feet from the trailer to the barn. I've had hay haulers have to put the hay in lofts carrying bales up the stairs.	Make sure what you are walking into before you set delivery prices for small bales. If it's for large square or rounds you just have to figure out how many you can carry and know what kind of fuel consumption your truck gets while carrying a full load. Once again you need to know what kind of place you are delivering to and if they have a way to unload or not.


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## askinner (Nov 15, 2010)

If you have neighbours doing the same as you intend to do, I would suggest having a chat to them to see what they are charging.

I have about 6 or so neighbours that sell off the farm, just as I do, so we all keep our pricing pretty close to one another, so as not to cut each others throat. No quicker way to p!ss off the neighbours than to go in too cheap with your hay!


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## somedevildawg (Jun 20, 2011)

Maybe that's why I stay pissed off......just pocket money to my neighbors


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## John Deere Green (Mar 21, 2012)

Thanks for the info guys, very interesting to see what everyone does. I will agree that I dont want to piss off the neighboors, but also I know that as far as the hay market goes, I am one of the four I know of in a 30 mile radius that sells hay off the farm and most of the other guys do small squares. I do believe that as a small producer it is valuable for us to work together instead of against one another.


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## askinner (Nov 15, 2010)

John Deere Green said:


> Thanks for the info guys, very interesting to see what everyone does. I will agree that I dont want to piss off the neighboors, but also I know that as far as the hay market goes, I am one of the four I know of in a 30 mile radius that sells hay off the farm and most of the other guys do small squares. I do believe that as a small producer it is valuable for us to work together instead of against one another.


Good view, I have a neighbour I will often send customers to when I don't have any, as I know he would do the same. It's always good to have a favour in the bank when a piece of your gear breaks down with hay on the ground IMO


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## somedevildawg (Jun 20, 2011)

Ditto that, hold your friends close, never know when you will need them or them you....I don't hold my enemies very close, just stay away from them, contrary to more knowledgeable people....


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## Teslan (Aug 20, 2011)

We do similar in my area. There are about 5 of us in the surrounding areas that sell similar kinds of hay to the same markets. So we kind of ask each other what we are getting for our hay and go from there. So the price is similar or just 25-75 cents apart on per bale or 10-20 dollars per ton difference depending on the quality and types of hay.


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## Mike120 (May 4, 2009)

Teslan said:


> We do similar in my area. There are about 5 of us in the surrounding areas that sell similar kinds of hay to the same markets. So we kind of ask each other what we are getting for our hay and go from there. So the price is similar or just 25-75 cents apart on per bale or 10-20 dollars per ton difference depending on the quality and types of hay.


Not a good idea to admit that in print.....Some liberal horse owner could report you to the FTC.


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## askinner (Nov 15, 2010)

Mike120 said:


> Not a good idea to admit that in print.....Some liberal horse owner could report you to the FTC.


Haha, I was thinking of that when I typed the same. Was picturing the horsey folk reading it and saying to their horse "I knew it! Them price fixing SOB's"!!

I am lucky though, I have some great horsey customers, they come with folding stuff, and a lot of the time will recommend me to their friends. I have weeded out the hard to deal with ones mostly.


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## Teslan (Aug 20, 2011)

We aren't price fixing. We just ask each other the price then go our own way. We don't figure what we should each charge. If the neighbor says he is selling his hay for $7 and no one is hanging up on him or complaining I figure I can ask $6.50 because I know that neighbor always exaggerates what he really is doing. Besides there are plenty more hay growers around here then just the couple of farmers I ask what their prices are.


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## askinner (Nov 15, 2010)

askinner said:


> Good view, I have a neighbour I will often send customers to when I don't have any, as I know he would do the same. It's always good to have a favour in the bank when a piece of your gear breaks down with hay on the ground IMO


Well, that favour in the bank came in real hand today, was a couple of acres shy of finishing cutting one of the best cuts I've had all season, and the tractor's engine locked up. Quick call to the neighbour, and I was mowing away in his tractor in less than an hr at no charge.
I consider myself so lucky to have such a great relationship with a "competitor". I fuelled his tractor up afterwards and offerd him some $ in return, he said "no way, I'm sure I'll need a favour one day myself". He has also told me to grab it if I need it to rake and bale too.

What may cost you a little now to help someone out, may save your a*se later down the road!


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## John Deere Green (Mar 21, 2012)

I also have a relationship like this whith two different producers. One retired from farming a few years ago but since I started farming with him while he was still operating, trading labor for equipment use as I am only a 20 yr old college student w/o much credit to buy much eqipment, and now he allows me to use the eqipment he has left if I break down at no cost.

My other friend also farms small time and we share equipment quite a bit. Some of his hay fields are closer to my farm than his and as he doesnt trust pulling his equipment down the road long distances, he uses my tractor rake and haybine on those fields.

I consider myself very lucky to have this relationship with my neighbors.


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## R Ball (Feb 26, 2013)

Had another local hating guy suggest the following which I find very interesting. He seems to think we need to price small squares 
Based on the price of a gallon of diesel fuel. 4$ fuel at the pump, 4$ dollars a bale in the field. I kinda like his idea.

Any thoughts on this?


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## somedevildawg (Jun 20, 2011)

R Ball said:


> Had another local hating guy suggest the following which I find very interesting. He seems to think we need to price small squares
> Based on the price of a gallon of diesel fuel. 4$ fuel at the pump, 4$ dollars a bale in the field. I kinda like his idea.
> 
> Any thoughts on this?


That's the dumbest damn thing I've ever heard, tell your neighbor for me.....he's a moron, shoulda studied harder in math class.....why not just pick a random number out of the air? Or, the price of a blade for your disc mower, or the price of a quart of oil, or the price of a dozen doughnuts.......wth


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