# Setting up a new haying enterprise



## Wyoming (Dec 23, 2010)

I am looking at taking on a ranch that just came up for lease in NE Montana. It would be a yearling operation on the pasture land so my entire hay crop would be for cash. It is 1200 flood irrigated acres. 1050 acres are old alfalfa stands that have been neglected and are now mostly grass. This means only one cutting of grass hay, although yields range from 2.3-2.9 t/ac. 150 acres are worked and ready to be seeded this spring.

My initial plan is to begin planting everything back to alfalfa over 4-5 years. It is reasonably close to the energy boom currently occurring in NW North Dakota and NE Montana; there are lots of trucks that bring drill stem, equipment, etc. up here and are looking for loads to go back south (Texas, Kansas, etc).

My thoughts are that 3x4 bales would be easiest to sell, but I am not opposed to putting up as many small squares as possible. Is there enough demand for small squares to warrant baling them?

Any thoughts would be appreciated.


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## jdhayboy (Aug 20, 2010)

Hard to say... as you know there are so factors that are in play that we cant predict. Drought, fuel price on transportation, oil boom playing out, supply demand of hay , etc. For example, when the states between you and Texas have good years that means there's a lot of hay between us. So if there selling alfalfa small squares in New Mexico for 8 bucks and I can get it to Houston for 10, then your hay would be priced according to the freight to Texas. The reason I talk about the oil boom dying out is because in 09 I was buying a lot of hay out of Arkansas. Freight was good and cheap because the back hauls off drill stem.


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## K WEST FARMS (Apr 4, 2011)

Agree with jdhay , would think you should for closer markets......just a lot of real estate that may have hay to sell between you and Texas ! JMHO John


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## NDVA HAYMAN (Nov 24, 2009)

Wyoming, Seems to me that you need to find out who your customers will be and what they want as far as types, quantity and size of bales. Baling 3x4 is the best for shipping on drop deck trailers or others but the cost of freight will eat you alive and make it not very profitable. Are you buying and selling the yearlings in the same year? Just fattening them on pasture? You will need some cattle around just to feed the unsaleable hay. Just some of my thoughts fwiw. Mike


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## swmnhay (Jun 13, 2008)

I wouldn't be only looking at trucking it south.By the time you get your fields renovated the drought there could be over and that market could dry up.To ship any distance you will have to be shipping high quality hay.NE Montana is about as far away as you can get from anywhere.

Like Mike mentioned you need some cattle around to eat the poorer hay that you will have.


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## Wyoming (Dec 23, 2010)

OK, let me re-phrase: Is there enough premium for small square bales to justify putting them up in any sort of quantity (500-1000 tons)? Anything that I hope to sell (rounds, large, or small) will have to be shipped somewhere, except for local cattle feed, so are there enough big users of small squares out there to justify producing them? I am not going to make that many small square bales and sell/deliver them 50 at a time to the little horse person. However, if there are a few stables, ranches, or others that can take a big load at a time, I would be interested. This is my question.

As for the cattle to utilize low quality feed, I've got that part covered.


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