SEON | kboekhorst - 5/14/2019 22:29
So getting around .02ct/lb. weve had excellent straw years with no rain in the swath. Have asked lots of custom balers of what there cost are and what they get for straw there very secretive about it. Some custom baler/traders here buy straw from other custom bale guys so the margins are not tight if there getting others to bale while there also making a profit. especially with cdn and american dollar exchange. Not thinking this will be a ticket to print money but considering looking at diversifying.
Yeah i think quota is becoming to a point that its purpose has kind of been defeated. Quota was for small farms to survive not for 700+cow dairys to buy out everyone. I dont blame them but they are asking for lots of support because most have lots in debt from buying quota. Have quota but for laying hens. Felt like it was a better return with less work and hassle. While still being able to go big into grainfarming with no hired help.
It’s been about 10 yrs since we’ve hired a custom baler but he charged $1/ft for a 3x3x8....so $8/bale or $.0133/lb.
No rain in past years doesn’t guarantee no rain this year. Maybe you could charge .04 for dry but if it rains it all goes for the mushroom price of .015? The straw buyer assumes all weather risk and there is no insurance. He could easily have half of it go for mushroom compost, which at $110/MT, I figure is a break even deal at best.
The allure of US money is great but Have you priced trucking to the USA lately? Driver alone is $.50/mile plus benefits and your payroll taxes. Insurance could be $10,000 - $20,000 per truck.
You have to be a little careful if you want to sell your straw. There are other sources of TMR fiber the dairies can use....like citrus pellets or cotton seed hulls or soy hulls so I’m told. But you are correct, $.02 is cheap....... I bet you could get $.03 if your fields are clean and smooth and it's not a PITA to bale your straw.
One more thing...I know wheat produces that take less for their straw because they know the buyer will have the straw gone fast and ready for a cover crop.
Edited by rank 5/15/2019 08:41
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Straw auctions
