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.”