Hay goin South and prices....

I live in S.E. Nebraska. Easily 30 minutes from Kansas boarder. Been getting calls from guys wanting to buy and haul south. Now most of these calls talk faster than I can think and I hear about these guys buying here at $4.00...parking in a walmart or off road down south and selling for 10-12 per bale..I know there is cost in fuel involved, etc. but really??? 10-12 Is this jabbing or price and demand?? I havent sold any to these guys most goes to local returning customers first..

I hear you I am in NE Wyo and had a guy call from Utah wanted 250 tons plus in rounds, said he was giving 175-200 a ton here? I like you take care of my real every day customers, would have liked to help out some one who could have used it but I hate to think what they would charge them fob Utah

I can say first hand that it is happening here. I saw a 16' bumper-pull utility trailer loaded with small square bales (60# or so) in town yesterday with a phone number on a sign on it. I called and was told $10.00 for 1-10, $9.00 for 10 or more.........We're real short on hay here, but there's no way to ever come out paying that kind of price. There's never a good 'nuf stretch of "good years" to get it back. 4x5 round bales are priced at $90.00 and up. I don't know if they sell many at that price, but that's what they're asking.........Cows go to the sale barn before a man goes broke paying that to feed.

It's called price gouging! People ready to make money on someones misfortune. SIL drives. He says that his truck would take right at $800 in fuel and his pay would be about 385 for a one way run from west MN (1100 miles) to Dallas! Unless yer running back empty the prices of hay down there shouldn't be that much. Now he can haul about 25 tons of hay at a time. Been told they are getting 250-300 a ton in TX. So at 250x25=6250-1200=5250-40 (per ton here on the high side) leaves 5000. So knock another 1500 off for wear and tear and other operating expenses and yer still looking at a guy pulling in 3500 or so per trip. And if a guy can find a hual back he's making money on that too.

Rick

Years back i once hauled a load of hay out of South Dakota to Miami and about feel over on what a standard bale of Al Phiy hay brought down there . it was selling for 32 bucks a bale .

Keep in mind not everyone can haul cross country without having the proper DOT#s, a big rig, CDL, and insurance. THAT COSTS MONEY AND A MAJOR INVESTMENT!

Must be ---- making a good profit is a crime now days !
why don't you just go south with your hay and sell it ??

We had a feed shortage out here a few years back, Neighbour 3 miles away, was charging $110.00/1100 pound bale.

We ended up trucking in bales from 700 miles away, dropped in the yard for $66.00/ 1100 pound bale. Even people close by gouge when they know you neeed the stuff. Nice neighbours!!

If they're selling it off the truck on the side of the road, they're not selling to farmers.

They're selling it to city folk for fall decoration, or horse people who have more money than brains anyway (why else would they own a horse?), and deserve to be separated from their money.

Take it down there and sell it yourself? Why not just GIVE it away? After all, it was a tough year for those guys down south (and it wasn't for EVERYONE? C'mon give me a break).

When there is a surplus and the price tanks you don't see buyers offering to pay more when the shoe is on the other foot do you? No.

LN_GR111
New Holland, PA Monday October 17, 2011 USDA-PA Dept of Ag Market News

Pennsylvania Weekly Hay Report - Harrisburg, PA

DEALER HAY AND STRAW MARKET FOR EASTERN PA.
All hay prices paid by dealers at the farm and per ton. Compared to last week
hay and straw sold steady.
All hay and straw reported sold per ton.

Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 200.00-250.00 240.00-300.00 175.00-200.00 -------------
Good 175.00-200.00 160.00-200.00 150.00-175.00 -------------
Fair ------------- ------------- ------------- -------------

Straw: clean 100.00-160.00
Mulch: 60.00-80.00


SUMMARY OF LANCASTER AREA HAY AUCTIONS.
All Prices per ton: 104 Loads and 531 tons of Hay, 15 Loads and 73 tons of
Straw.
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 250.00-360.00 220.00-360.00 275.00-370.00 -------------
Good 140.00-187.00 140.00-205.00 ------------- 150.00-230.00
Fair ------------- 100.00-130.00 ------------- 100.00-137.00

Straw: 140.00-225.00.


DIEFFENBACH AUCTION, Oct 10 2011. 33 Loads Hay 5 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 250.00-360.00 220.00-360.00 370.00 -------------
Good 140.00 140.00-205.00 ------------- 175.00-230.00
Fair ------------- ------------- ------------- -------------

Straw: 165.00-190.00


GREEN DRAGON AUCTION, Oct 14, 2011 38 Loads Hay 3 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- 240.00-265.00 275.00 -------------
Good 155.00-187.00 140.00-202.00 205.00 165.00-205.00
Fair ------------- 100.00-130.00 ------------- 100.00-137.00

Straw: 115.00-205.00.


WEAVERLAND AUCTION, Oct , 2011 18 Loads Hay 7 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- 240.00-410.00 ------------- -------------
Good ------------- 145.00-190.00 ------------- 155.00-210.00
Fair ------------- ------------- ------------- -------------

Straw: 170.00-220.00.


WOLGEMUTH AUCTION, Oct 12, 2011 15 Loads Hay 0 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- 285.00 ------------- -------------
Good 140.00-150.00 170.00-187.00 ------------- 150.00-210.00
Fair ------------- 120.00-122.00 ------------- 120.00

Straw:


SUMMARY OF CENTRAL PENNSYLVANIA HAY AUCTIONS.
All Prices per ton: 106 Loads and 480 tons of Hay, 12 Loads and 55 tons of
Straw.
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 220.00-330.00 210.00-350.00 225.00-240.00 260.00-300.00
Good 185.00-205.00 140.00-200.00 150.00-220.00 150.00-200.00
Fair ------------- 70.00-130.00 ------------- -------------

Straw: 135.00-205.00.


BELLEVILLE AUCTION, Sep 28, 2011 12 Loads Hay 0 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 235.00-290.00 247.50-300.00 ------------- -------------
Good 205.00 187.50-210.00 ------------- -------------
Fair ------------- 140.00 ------------- -------------

Straw:


DEWART AUCTION, Oct 10, 2011 11 Loads Hay 0 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- ------------- ------------- -------------
Good ------------- 140.00-200.00 ------------- -------------
Fair ------------- 80.00-130.00 ------------- -------------

Straw: 190.00-245.00.


GREENCASTLE AUCTION, Oct 10 & 13, 2011 6 Loads Hay 0 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- ------------- ------------- -------------
Good ------------- ------------- ------------- -------------
Fair ------------- 70.00-90.00 130.00 -------------

Straw:


KUTZTOWN AUCTION, Oct 15, 2011 28 Loads Hay 6 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium 220.00-330.00 210.00-350.00 225.00-240.00 260.00-300.00
Good 165.00 155.00-170.00 150.00-220.00 155.00-180.00
Fair ------------- 120.00 ------------- -------------

Straw: 155.00-235.00.


MIDDLEBURG AUCTION Oct 11, 2011 25 Loads Hay 1 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- 220.00 ------------- -------------
Good 185.00 145.00-200.00 170.00 150.00-200.00
Fair ------------- 70.00-130.00 80.00 125.00

Straw: 185.00

SHIPPENSBURG AUCTION, Sep 29 & Oct 4, 2011 24 Loads Hay 5 Loads Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Premium ------------- 230.00 ------------- -------------
Good ------------- 145.00-198.00 120.00-200.00 -------------
Fair ------------- 110.00-125.00 ------------- -------------
Straw: 130.00-178.00.


WESTERN PENNSLYVANIA
NEW WILMINGTON AUCTION Oct 14, 2011 11 Loads Hay 1 Load Straw
Alfalfa Alfalfa/Grass Timothy Grass
Mixed
Good ------------- 170.00-190.00 ------------- -------------

Straw: 190.00

I'm seeing hay around here as low as $20 a 4X5.

Local auction dairy quality alfalfa small squares you load and haul 4 a bale. Large round 1200 pound grass 15 a bale you haul. Dairy quality same size 29 a bale you haul. I took 18, 1800 pound bales off of 11 acres on one cutting and 8 acres of that was planted this spring and cut 2nd week of Aug. Even the grass hay up here looked real good this year and there was lots of it. We normally get 2-3 cuttings a year and some guys up here got 4 this year.

I don't mind a guy making a reasonable profit! If you read my prior post I not only knocked off for drivers wages and fuel but I also knocked off 1500 per load for wear tear and other operating expenses such as plates, insurance, depreciation and what all. And thats still leaving a PROFIT of 3500 per load. Now it would be a 3 day turn around for a driver here or 10 round trips a month, so you are telling me that most likely netting 35,000 dollars a month is reasonable? Can't believe that this is the same bunch thats always yelling about corporate greed! Guess it's OK as long as you are putting the money in your pocket!

Rick

You're just guessing at the actual costs of doing business.

You're assuming these guys can just keep turning and burning continuously.

Heck, that month of $3500 profit per load may be all the profit he sees for the year. 10 loads, $35000, is all his family has to live off of for an entire year.

Heck, he might only be able to pull that move once a year. That $3500 is just bonus money at that point.

At least he's making a healthy profit on HARD WORK. These corporate crooks are lying, cheating, stealing, or just sitting there, and raking in the money.

Why shouldn't the retailer make a BIG profit.
The big chain stores are making a killing off the backs of the farmer!
We sure as hell don't gripe about that!

We have been shipping hay to TX for about $70-$75 per bale for 4x4 bales. That includes the freight. They said they would take all we had.

we have heard guys from texas way have been looking at hay auctions in wisconsin to see what hay is available for sale up here.
make us guys that have to buy hay wonder what price is going to be.

Rick,

You sound like some one who never learned how to make money or operated a business.

Truckers have DOT required hours of service. 14 hours on duty or 11 hours driving then have to shut down for 10 hours. Can only run 70 hours on duty in 8 days then have to shut down for 34
hours. 5 days of 14 hours on duty is 70 hours!

You can't legally make 10-2200 mile turns in 1 month. I can typically average around 650 miles per day. That means 2 days to run 1100 miles. Then you have unloading and loading time. Better
allow 4 days minimum per turn. Now take into account hours of service and finding a back haul, I suspect that about 1 turn per week is more realistic.

The lifestyle (or lack of) of trucking is pretty brutal. The guys deserve to make money.

Your comment about making money on the to/back haul sounded like you think that is bad thing.

Just because folks work harder and smarter than you do does not make them a bad person, greedy, or a price gouger.

Oldtanker I would like to know where you are in MN. My two older sons own four trucks and their business is hauling grain and hay. Here at the Dyersville, Iowa hay sale, hay like you are talking about would bring three to four times what you are saying it is. IF that was really the case we would be seeing that hay here. The auction sells as much as 2000 ton each sale when in full winter. We get high quality dairy hay out of North Dakota and Wyoming. It costs $350 a ton here.

I have talked to some of the guys hauling the hay down to the south. They said that good grass hay can be bought for the $100-150 range. The real high prices are already down. Everyone is hauling hay down there thinking they are going to get rich.

I've bought some hay In Missouri. It's over 600 miles from my house and the trucking cost me $60 per 1000# bale for 34 bales. I've tried 3 different trucking co. and that's the cheapest I've found. This is fert /weed sprayed Brome and the freight puts me with over $100 per bale in the hay. Many people are trying to haul hay down here with a 1 ton dually and GN trailer. They're finding tires and engines are big $$$$$$

The last report I saw said that 83% of Texas herds are gone(sold or lost)...Reckon That will affect the price of beef next year?.......

LOL No I did look at operating cost buy giving my SIL's boss a call (good guy). He's looking at buying hay at those prices. My SIL just did a turn around, Fargo-Dallas-Fargo. He avearged about 675 a day on the road so ok ad the extra day in......these guys are still making a heck of a profit.


A business is a busines large or small. Gouging is gouging. Now if the TX farmer is doing the bidding online, in person or with a buyer then the seller is making the money and no problem......the buyer was willing to pay the price and spent the money and the real winner is another farmer who got a very good price for his hay and the trucker/trucking company who is hired to haul it. I'm talking about the guys who are buying locally at much cheaper prices and charging that much because they can and making 150% return. If a large business was making a 150% you guys would be madder than heck and yelling for an investigation!


AS fas as knowing how to run a business...yea I do well enough to know that a company that breaks even 11 months a year and makes a profit one month a year isn't going to make it! The SIL's boss says it takes about 15K a month to run one semi and trailer for him. That includes wear and tear, depreciation, repairs, fuel, fees and wages. I allowed in my guesstamit for 10 trips at 1500 a trip for other expenses plus 1100 for fuel and wages. SO I allowed for spending on a guess of 26K a month to run the truck, buy the hay and pay the driver and you would still be making 35000 a month profit. And keep in mind those prices have been like that for the last several months! I also kept in mind that running from say Geely Ne to Dallas is a lot shorter trip, granted they are paying a lot more for hay because of the shorter turn around.

JDseller, the big nationally advertised hay auction with on line bidding near here is a bit higher (last week rounds brought 29 a bale for grass) than that but was at a local consignment auction with those prices. Also look at CL farm listings for Fargo, Brainard and St Cloud daily and those are the prices I'm seeing. Guy with the dairy (tested) quality small squares only brought 50 to the auction but said he would sell more depending on the sale price. He refused to sell anymore. Wife and I talked to him. He said that at 4 bucks a bale he wasn't making any money with having to hire help for the small squares and that he will no longer do them. Seems that no one is willing to pay the prices needed to make a profit. I don't think I would sell rounds at 20 bucks a bale except for ditch hay if I cut it. Most of the guys making hay up here are cutting back thier hay ground due to grain prices and the low local price of hay. A friend figures it cost him with his equipment and fuel, fertilizer and all about 37 bucks to make an 1800 pound bale. He cut back to 35 acres and sold the last of last years hay at 32 a bale for tested dairy quality. I think in the spring he's going to be down to about 15 acres. Just enough for him.

Rick

Boil it all down and you have it in a nut shell. Applies to everything bought and sold, Hay and Cows are no exception.
- Less Supply, more Demand = higher prices.
- More Supply, Less Demand = Lower Prices.

Ranchers & Farmers with Hay for Sale, Farmers & Ranchers with Cows to Feed, are not excepted from these basic rules of economics.

Very true and crop prices reflect that most of the time. A farmer that sends something to market where it's being auctioned is taking a risk and if he hits a payday thats how it works. But a guy who buys something cheap and really jacks up the prices because of someones hardship....it's called gouging. Basically you take and item, figure your cost to get it to the customer and add in a percentage for profit. Those profits generally range from 10-38% depending on the item, net. Most of the time the customer has the option of not buying or picking another vendor. Whats going on it Texas is that these people have to feed these animals. If not the can be charged with a crime so some, not all but some are taking advantage of the situation of a guy who really needs to keep some of his herd for the future and hopefully some rain so he is stuck. He has to pay the price because when times do get better he needs the live stock to get going again. He cannot afford to sell the critters if he wants to keep live stock in the future and if he don't feed em he's in trouble with the law. LOL like I keep saying, if it were a major company we'd be yelling that someone needs to go to jail. Right now hay here is 30-145 a ton (figuring 1000 pound bales) depending on quality and type of hay. Lot of the folks taking hay to TX are buying cheap, paying the least they can for trucking and really socking it to the people of Tx. They don't even own the trucks but just hire em based on the cheapest bidder. I don't think any farmer should give his crops away and when selling if he gets a good offer so be it. But by definition buying something cheap that someone must have and selling really high is price gouging.

SIL just got back from TX yesterday. Says that convoys of hay are going down. He's wondering if they are dead heading back or waiting around for a reload. He talked to a couple on the radio and claims that a bunch are hauling for ranchers or farmers who have buyers working the auctions. Now if those guys are willing to pay 250-300 a ton plus the cost of hauling that's their problem. That's the price they are willing to pay to keep part of their herd back for the future

Lot farmers up here have gone over to grain only because they can't see the profit in feeding 12 dollar beans and 5.50 corn to critters. I' sure that at hay prices in TX the folks who still have cows are not going to see the profit selling those animals for butcher.

Rick

Yep, some I know of are holding just a few of the best, regestered etc. for a start in future times when it starts raining again, the rest went to the sale barn. They don't have to have as much hay that way and can shop around for a few rolls here and there. Lots of the guys are feeding corn shucks and put out protein tubs for them.