Desperate or Insane

[Mufferaw]

The following are hay listings on Sask kijiji. Will producers actually pay these prices? Spoke with the local DU supervisor yesterday about hay tenders. They were coming back at more than $50/acre for newer stands. Crops in my area look average just nor rain in April so hay yields are poor, 50-75% of average. At these prices you are better off to greenfeed a 100 bu oat crop than combine it.

150 alfalfa/ grass bales suitable for horses or cattle put up in good shape ranging from 14-1500 lbs $170

I will be taking offers on these bales until July 17th, at which time I will contact the winning offer

250 acres of oats / alfalfa mix, round hard core bales will be approximately 1200 lbs. @ $0.10/lb

Good Quality Hay - Baled last week - 1200 lb bales - 50% mix of alfalfa and timothy/bromm grass - located just wet of Winnipeg close to Trans Canada Highway - 100 bales for sale $100/BALE

Good quality horse hay. Heavy rounds bales. Mostly grass. $285/bale

[kato]

I think it's called fishing. Throw out something outrageous and see who bites. If we were up against it, and $100 per bale was what it took to buy hay we would either feed something else or start selling cattle.

[smcgrath76]

I received a notice today of some large bales for $220. I phoned about some straw bales a couple of months ago and the guy want $45 in the yard. I guess he was low by the current pricing standards. I doubt most folks can winter a cow on less than 3 bales (more likely 4). Even on a steal of a deal of $200 per bale that puts you at $800. That makes an $1800 calf into an instant $1000 calf which I think is actually below many guys break even.
It seems to make more sense to sell the cows (which should be tax deferred income if they apply the drought rules), or find an alternate something for cows to eat. There may be quite a bit of crop written off in our area, that can turn into feed.
Our plan is to sell some older cows off if we have to and retain our younger cows that are bred with sexed semen so we can rapidly regrow our cowherd (rather than the planned expansion). We may also sell calves early or custom feed our steers to free up some feed at home. Depending on snow, we are also set up for winter grass for a good chunk of the winter.
We have already trimmed open/late calving cows, grass cattle, and done a sort on replacement heifers.

[15444]

Be a lot of grandfathers rolling in their graves this year, watching their descendants spend outrageous sums of money to feed animals that were not even worth that same sum 10 years ago.

Really goes to show those who continually like to work for nothing or just to break even. Wonder how many of those same people will be looking for support payments at the end of the year.

[Horse]

Well just to play the devils advocate. Last 2 yrs all anyone would pay for hay was .3# and I just cant make hay for that much. In 2002hay went for .5/.6# and a calf was only $550.
Now .12/# and calf worth $1600 are you not still better off than you were before
I know thats a lot to feed a cows but you have had 2 good yrs and for the most part you arnt buying all your feed just the shortfall,so after what you been through the last 10yr this dont seem so bad afterall

[Mufferaw]

For the going prices of feed and pairs, one would be better off to sell pairs and what feed you have. Even at a bale/acre this year the net on hayland will be greater than most crops.

[grassfarmer]

Selling 3c/lb hay can't be done with modern production costs and to replace the nutrients removed. I sure liked buying it though.

Cattle guys are in a tight spot with the drought, as Horse says the saving grace is often that you only need to buy a % to stretch your own feed so that mitigates the extremely high price somewhat.

What I've never understood is why most ranchers in the west consider hay the only thing you can feed cows. Straw, weed silage, hailed grain crops, pellets, grain can all work but most prefer the convenience of feeding only hay. That's an expensive habit. $5 bu barley is only 10.5c/lb.

Ironically with us moving this summer we are going to have a mountain of feed to put up as we can't graze all the acres. I'd consider custom feeding cattle this winter but hauling cows from AB to MB at $3000 a load isn't cheap either, especially if they have to go home again. That puts you close to $1/day cost just for the trucking.

[kato]

Our hay will be down this year. For a start the calves will be getting a straw based ration. That should free up a pile of hay bales. They will be weaned a bit earlier too, which should leave more corn for the cows to graze. We won't make any other plans until we actually see what the hay crop will be. We are not afraid to be flexible on feeding. Over the years we've done just about everything from straw and grain to green feed to liquid supplement. Whatever works.

[ag-boy]

kato $100 a bale is not out off line !
saw calves on team auction sell for over $3 many did bring 1500 to 1600 dollar !

[kato]

Ahh but there's the problem. We've spent a long time working toward finally making some money on our cattle, and along the way have learned how to be shall I say, thrifty? Now that there is money again, we are in no mood to start tossing it around unless it's necessary. We would kind of like to keep some. Pay off debt. Maybe even save some for the future...

I don't know about you all, but I find it quite aggravating how after years of listening to people look down their noses and asking us over and over again, "Why haven't you sold your cows?" , now all of a sudden the salesmen and middlemen are all circling like vultures looking to take whatever profit we may make now. We could walk into an equipment dealership and nobody would even look up. Not now. Really, $14,000.00 for a rake? A rake? It has two hydraulic cylinders and some wheels... And balers.. That's a whole other level of insanity. No wonder everyone wants big money for hay. They've drunk the same koolaid as the grain guys did, and got talked into believing the line that you can't farm without going into debt on equipment.

So ya, after all that. $100 hay is too expensive. For these tightwads. Lol. We will power through with our paid off baler and rake, and get creative if we come up short. We've done it before.

[Horse]

Kato I agree you deserve some reward for hanging on the past 10 yr. The problem here is there is little hay and that means no greenfeed along with short pastures so longer feeding period, very short crops and mostly rotary combines so I doubt there will be any straw abundance.
I agree also on equiptment I said 20 yr ago I would quit before I would pay $25,000 for a bailer and now they are 50, But I still havent paid over $6000 and it seems to work good for the 1thousand bails I used to make. Made 304 this yr and looking like no 2nd cut.

[kato]

I guess location has a lot to do with my attitude too. Manitoba is doing ok weatherwise compared to a lot of places. Our hay reduction, at least on our farm seems to be from frost damage to the alfalfa in May. There will be no shortage of straw around here, and pastures are good so far. Too soon to panic and pay the moon for hay.

I guess the biggest worry would be hail. We have gotten enough rain in Manitoba, but it has all been from thunderstorms.