|
Little River, TX | Feeding hay to meat animals is not real profitable.
I reread my effort here and it comes a crossed as if I were agitated. That is not the case. I was simply attempting to be informative. I use estimated next years cost because if we do not taken in enough for input costs, we simply will be out of business next year.
The economics of hay production. The fertilizer that is in this years hay will probably cost between $45 & $50 a bale next year.
Then the cost of baling hay probably will be above $20 possibly up to $25/bale.
Land cost here are fairly low, I figure close to $5/bale is the land cost. All this is before going to the grocery store for staples, or buying a new set of work clothes. If a 9% markup is considered gouging by the oil robber barons that should be close for us. So add $6 to $7 per bale just to gouge the customer.
The days of $35/RB are long past.
You can do the math as well as I can. What will fertilizer be for 2009. A ton of hay should have 40 lbs of nitrogen, better 50 lbs. That same ton of hay should have 12 lbs of phosphate better to have 14 lbs. Then there is 60 lbs/T potash closer to 70 lbs is better. A number of growers will have to lime so the hay will have about 10 lbs of calcium and 7 or 8 lbs of magnesium. What does it cost to apply fertilizer these days? Maybe $4/acre?
There are 19 or 20 smaller square bales in a RB. God grass hay in small bales is selling for $6. That means there is possibly $120 worth of hay in a RB. Depending on many factors break even on a RB is probably in the $75 to $95 range.
Yes I can produce so called hay for $35. It will have very little nutritional value, no fertilizer inputs, on land that has no cost to me. If filler is all that is desired and concentrate will be included in a ration CHEAP hay will work. If hay is all they are getting then $90 hay is appropriate.
In today's dollars, in our area you can feed a cow for less than $1/day if they do not require any supplemental feed.
The livestock producer has the option of using a stocking rate that his land will carry and no more. This will continue to be where the best return will be found. The problem comes when living cost exceed net income potential.
I wish you the best, but finding any feed value in a $35 RB is a thing of the past.
Edited by Hay Wilson in TX 8/30/2008 15:05
| |
|
cow/calf fertilizer removal rates
