# Baling on Shares and Buying You Part?



## Tim/South

Last year I agreed to cut, rake and bale 30 acres on halves. The land owner fertilized. The hay is grass, first cutting is fescue and clover. Second cutting has a lot of Bermuda. I did alright on the deal and agreed to bale again this year.
He sold his half for $30. He wants to fertilize this month, the fescue is looking good already. Wants to put 300 lbs per acre of 17-17-17.
I told him if he sold his half for $30 that I was buying it to feed myself.
We talked this evening and asked if I wanted to buy his half? I asked him for a price. He said he might have to charge $35 since the cost to fertilize was so high, that he would think about it and get back with me.
How does a person figure a fair price in a deal like this? Even at $35 I can not buy this quality of hay for that anywhere else.
I am making a true 4x5 high density roll, bale with a 504 M Classic and crank up the pressure.


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## urednecku

> Even at $35 I can not buy this quality of hay for that anywhere else.


If *you* are happy with the price, and _*he*_ is happy with the price, I would think that's all that matters.
He has the advantage of knowing it's sold and he doesn't have to mess with it any more. You have the advantage of knowing what the quality of hay and the package is, and you don't have to worry about finding another source.


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## NDVA HAYMAN

Tim, What happens to the price if his hay gets rained on and is lesser quality? Just a thought. Mike


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## Tim/South

urednecku said:


> Tim, What happens to the price if his hay gets rained on and is lesser quality? Just a thought. Mike


Good point Mike. Spring weather on first cut can be iffy. I am usually very cautious about cutting if there is a chance of rain.
I suppose if I claim the hay then it would be mine and I would spend a lot of time on the fluffier if it got wet.


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## somedevildawg

Like ******* said, what's fair to you and fair to him is fair market value. I would pay whatever this gent wants, within reason of course. My.02


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## Chessiedog

If you both like the deal, sounds like it works then. You bale it ,you know what you have ,even it it does get wet . The other thing is if your baling it , then you would have the best chance of keeping it dry .


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## Tim/South

I want to be fair. A good deal is only a good deal if it is good for both parties.
I can buy lesser hay in both price and quality. Some of his first cutting last year was sold to horse people. They liked the hay. Kind of uncommon for horse people here to feed any grass hay other than bermuda.

The man and I get along well. I would really like to use one of his barns. He was holding pre paid hay last year for no storage fee to the guy who bought his half of the last cutting. 
I will be honest and say a part of me wants to lock in on good fertilized/limed hay at a good price. Another part of me wants to take the $30 (last years price) hay off the market.
I do not know if I will need his half off all three cuttings. We only cut twice last year, his decision since the fescue is a cool season grass. If we cut 3 times and I do not buy all three then he would be pushed for storage if I occupied one of his barns. I am cautious about putting him in a bind or him thinking I am trying to take advantage of him.
Another part of me wants him to be able to say the hay is sold when one of the locals pulls up and offers him $25 for his part.


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## Nitram

Buy it all if good price if you don't need it all you could resale and offer a split on profit to earn brownie points...? Martin


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## RockmartGA

@Tim/South,
You sound like a guy most of us would love to do business with. - i.e., you care about the other guy and realize that the deal is more than dollars and cents.

One other alternative, have you considered leasing the land?


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## Tim/South

Thank You Rockman.

He and I talked about leasing. He does not want to do anything long term and I would need long term if I fertilized. He also kind of enjoys being involved in the hay. He had cows until his only son got sick and passed away a few years ago. This is about all he has to do and seems to enjoy some decision making.


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## cmd

I have heard of a lot of different deals in doing work on shares. What I have learned is that someone is getting screwed when it really comes down to it. If you are happy, then great, if the guy helps you out or your just good old friends then you might look at it a little different as helping on another out which is fine. But when it comes down to the business transaction, it's never going to be 100% fair IMO.


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## Tim/South

A good deal is only good if it is good for both parties. I did very well baling on halves with him paying the fertilizer and basic slag. He made money selling his half.
We talked today and he said he needed $30 a roll for his half. I agreed to buy it all.
He just had 5 tons of 17-17-17 spread on the 30 acres. Spent a little over $3,000.
When he said $30 per roll I offered $35. He said $30 would be enough, would charge $35 if he hauled and stored any in his barn for me, then loaded my trailer this winter.


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## Nitram

Hell yea! Sound like win for both parties!


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## Vol

Sounds like a fair deal all the way around. Probably be good to store some hay on him and let him get some $35 rolls.

Regards, Mike


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## Tim/South

Vol said:


> Sounds like a fair deal all the way around. Probably be good to store some hay on him and let him get some $35 rolls.
> 
> Regards, Mike


I was thinking the same thing. Plus he likes to be involved. He said he could easily store 100 rolls and not put himself in a bind storing his equipment. I will need to feed 200 additional rolls next winter. It is money made to pay the extra $5 and have it under his roof.

On a side note, I saw a friend who sells and feeds a lot of hay. He asked if the man was going to sell his half again this year? I told him I was looking to buy that half. He said if I did not buy it, he would at $35 in the field. That is one reason I offered the Gent $35. 
Making money in farming is important. How much money is not always the most important.
Five dollars a roll is not going to break the bank.


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## cmd

So how many tons of hay comes off this field.


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## Tim/South

cmd said:


> So how many tons of hay comes off this field.


No tonage available, all rolls were not weighed. Averaged 138 rolls per cutting last year. The rolls that were weighed averaged around 1,000 lbs.
All that was added to feed the soil and grass last year was Basic Slag at one ton per acre. The yield should be much more this year with 330 lbs of 17-17-17 per acre.


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## swmnhay

WHAT IF.

Hay price doubled,and you were getting 1/2 the hay for doing the work.Would you do it for less percentage?Or the original agreed upon 50%


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## Tim/South

swmnhay said:


> WHAT IF.
> 
> Hay price doubled,and you were getting 1/2 the hay for doing the work.Would you do it for less percentage?Or the original agreed upon 50%


Here, if the price of hay doubled the farmers would finally be making a descent wage.
Our Extension Agent says we need to get $120 per ton to make money on grass hay. With rounds weighing in the thousand lb. range that would be $60 per roll. That would go over like a lead balloon here. If the price did double and he could get $60 per roll then I would roll it for my custom rate of $25 per roll. He does not want the custom price now.

He is selling his half for $30 per roll. At that price and us working on halves, I would theoretically be getting $15 per roll if he paid me on halves.
If my custom rate is $25 per roll and I buy his half for $30 then I am only paying $5 per roll for the hay.
He will make his fertilizer money back and then a little.


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