Extension provides ‘ballpark’ haying expenses figures

It is no surprise that haying expenses are increasing; how much, that is the bottom line agricultural producers want answered, said Bill Burton, Oklahoma State University Cooperative Extension area agricultural economist.

“It’s important to realize, right up front, that everyone’s costs are going to be just a bit different because each producer’s specific situation will have a number of individual factors involved,” he said. “However, it's possible for producers to pull out the calculator, put in their specific data and see how their costs are rising.”

Burton determined the general per-acre cost incurred in owning and operating the machinery needed for cutting to be $6.55, raking to be $3.59 and baling to be $9.14 at a fuel price of $3.50 per gallon. The cost figured out to be $6.91 for cutting, $3.82 for raking and $9.35 for baling at a fuel price of $4 per gallon. The cost increases to $7.27 for cutting, $4.05 for raking and $9.55 for baling at a fuel price of $4.50 per gallon. At $5 per gallon, the cost increases to $7.62 for cutting, $4.28 for raking and $9.76 for baling.

“The figures assume no labor expense, newer baling equipment and a 100-horsepower tractor,” he said.

Assuming a labor cost of $9 per acre, the per-acre machinery cost works out to $19.28 for no labor and $22.19 including labor at a fuel price of $3.50 per gallon. At $4 per gallon, it is $20.08 without labor and $22.98 including labor. At $4.50 per gallon, the cost rises to $20.87 without labor and $23.77 including labor. At $5 per gallon, it is $21.66 without labor and $24.56 including labor.

“The question then becomes, what is the cost per bale for cutting, raking and baling the hay?” Burton said.

Looking only at the cost per acre – based on 1,200 bales – with the labor expense included, the cost works out to be the following:

At a fuel price of $3.50 per gallon, 0.75 ton of forage per acre works out to $17.75 per bale, 1.00 ton of forage per acre comes in at $13.37 per bale, 1.25 tons of forage per acre works out to $10.67 per bale and 1.50 tons of forage per acre is $8.88 per bale.

If fuel is $4 per gallon, 0.75 ton of forage per acre works out to $18.34 per bale, 1.00 ton of forage per acre comes in at $13.84 per bale, 1.25 tons of forage per acre works out to $11.05 per bale and 1.50 tons of forage per acre is $9.19 per bale.

At a fuel price of $4.50 per gallon, 0.75 ton of forage per acre works out to $19.02 per bale, 1.00 ton of forage per acre comes in at $14.32 per bale, 1.25 tons of forage per acre works out to $11.43 per bale and 1.50 tons of forage per acre is $9.50 per bale.

If fuel is $5 per gallon, 0.75 ton of forage per acre works out to $19.65 per bale, 1.00 ton of forage per acre comes in at $14.80 per bale, 1.25 tons of forage per acre works out to $11.81 per bale and 1.50 tons of forage per acre is $9.82 per bale.

“The forage yield is not the annual production but the tons of forage on each acre that were cut each time the hay was baled,” Burton said.

Another factor that will affect haying expenses is the age of baling equipment. As equipment ages, so does the repair cost.

“The adjustment, reflecting additional dollars per acre, is 30 cents for cutting, 6 cents for raking and 62 cents for baling; multiply the adjustment factor times the age of the equipment and add that figure to the cost per acre,” Burton said.

For example, if the cutter is three years of age, the rake is seven years of age and the baler is two years of age, the adjustment would be an additional $2.56 per acre for repairs.

Burton said his prices are all based on researched machinery cost data.

“Anyone who operates hay baling equipment can see what their costs are for cutting, raking and baling their hay with their equipment,” he said. “All they need to do is contact their local Oklahoma Cooperative Extension Service county office.”

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