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northeastern Ohio | We used to make 40,000 small squares every year and sell the extra. When corn prices skyrocketed in 2012-2013, fertilizer prices and land rent went up too. But hay prices stayed flat in this area. It was a no-brainer to kill off a bunch of hay fields and go with more corn soybeans,,,, and more profit per acre with less work.
I figured that reduced hay acres would drive hay prices up, but it never happened.
There are tons of round bales rotting away in fence rows around here. Auction prices seem to never go much more than $30 per round bale (mulch bales for $10). Fertilizer value of a 800# round bale is around $15 if you are actually putting back the nutrients you are removing. The rest of the value is in the machinery and labor. As you found, it is currently cheaper to buy than to grow... and it has been that way for several years.
The question becomes: will hay prices stay flat? Will fertilizer prices increase or decrease? Your guess is as good as mine. Will equipment prices go up? Yes they will.
I would park the equipment in the shed and buy cheap hay. When hay prices go up, get the equipment back out and make your own again. | |
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talk me into selling my hay equipment
