Custom Baling

   / Custom Baling #1  

matt21

Bronze Member
Joined
Dec 18, 2007
Messages
83
Location
Oklahoma
I'm in northeast Oklahoma and looking to start custom hay baling. I have about 9 years experience on tractors. Is it profitable? Or is it not worth the trouble?

Thanks
 
   / Custom Baling #2  
What type of bales and what type of operation are you looking to do?

I know of people who make a lot of money just going non stop during hay season pulling a large square baler. All they do is bale for others and they can cover a lot of ground every day. The one makes enough money during hay season that he can relax and play with a hobby during the winter.

You can make money doing custom work but if you are looking at doing all the work then you will want advice on how to cover yourself if the crop gets ruined by rain. You would then have problems trying to schedule every one so that you can get all your customers hay off before it all goes to seed. I tried doing this my first year (only I was doing my own hay and decided I would take on a couple small jobs for some extra income), it was a headache as if I was not on their field doing their hay then they were mad (they don't care if you have your own hay to do). After the first year I decided it was easier to do my own hay and sell it and not worry about too much custom work. I do custom baling for straw as I am usually done with first cut hay so that works into my schedule well.

All I do are small squares and I have a good idea what would work and not work in regards to small squares. If you want to go with large squares make sure you have customers before you sink a lot of money into a tractor and baler (unless you already have them). The guy up the road bought a JCB fasttrac and a brand new New Holland large square baler. He went one year and was out of business as he did not have the customers lined up ahead of time (and we don't have a lot of dairys in this immediate area, he had to drive upwards of 20 miles till he found some small dairys that would be looking for this service.
 
   / Custom Baling #3  
Poking yourself in the eye with a sharp stick can be profitable if you get enough people to pay you to do that. Hayin' is the same way. It CAN be very lucrative if you have enough of the right sort of customers, an area where you don't have too many competitors, and you know how to hold equipment cost in line with your income.

Or it can be a bottomless money pit.

Your location, your abilities to manage a business, and your skill as a mechanic/operator balanced with intangables such as weather will determine the outcome.
 
   / Custom Baling #4  
Welcome to the forum Matt. Are you thinking of a full service haying business of just baling?

Been quite a few yrs since I had a small custom haying business. I guess the answer to profitability is it all depends.

What is the going rate in your area? Is there a real need (potential for customers)? How far are you going to have to travel? Will you have to have a truck and trailer to move equipment around? If you are thinking more than just bailing, how many times will you have to travel to a customers. Are you going to have to purchase equipment and can income make payments, pay for maintainance, etc.

Around here, yield was about 4T acre for first cutting and it would take 3 trips to do all the work. Had a low hrs MF165D and rest of equip was new. Had a mower conditioner, 2 rakes with tedding capability that was needed from time to time. and new sq bailer. Even with the new equip there was equip failure on a reg basis. Sickle sections had to be replaced several times a yr. New JD bailer in in first yr I had to replace a broken knoter and at least 4 needles and main bearing on the crank had to be replaced a couple times a yr. Also had 2 trucks and an implement trailer to move the equipment around. I was able to pay the bills and when a big job came my way the income was decent but there are so many variables I would be hesitant to say you will make a decent income based on time and equipment investment.

You have to have a love for the work. When you are out in the field and the temps are hovering in the 90's or more and your equip is experiencing problems and you find yourself down on the ground working under the equip and hay and chafe is getting in your face, it will give you pause to think if you really want to be doing this.

Hopefully someone else with more recent experience and closer to you with more similar conditions will respond.
 
   / Custom Baling
  • Thread Starter
#5  
It would be mowing, raking, and baling round bales. Also i would have to purchase the equipment.
 
   / Custom Baling #6  
Matt, I am in S.E Oklahoma. Here is something to think about, I do not own any hay equipment, I hire it done. I paid this year $15 per round bale to cut, rake and bale. What I am driving at is how many bales at $15 per bale would you have to put up just to pay for the baler? Not to mention the cutter, the rake, the truck, the trailer, diesel, oil, parts and More!!

Now I am not the sharpest tack in the package and I am sure the custom baler guy has it fiqured out!

Oh ... I ussually wait on him and worry about the weather, how about those dry conditions we had the past few ... any hay made around your area?
 
   / Custom Baling #7  
matt21 said:
It would be mowing, raking, and baling round bales. Also i would have to purchase the equipment.

Put up a small part of your business plan and then we can discuss your options...:D
Because if you don't have a business plan...you are doomed...:eek: :rolleyes:
 
   / Custom Baling #8  
PaulChristenson said:
Put up a small part of your business plan and then we can discuss your options...:D
Because if you don't have a business plan...you are doomed...:eek: :rolleyes:

Buy a baler and make money. What more do you need:D

I do wish Matt the best if he goes forward with his plan. If he plans on doing everything like he said then he needs to get customers lined up before he buys any equipment and try to figure out a schedule so that he can travel from one farm to the next in a somewhat orderly manner. Running equipment all over the place back and forth will waste time and money so a good schedule is very important.

Matt, have you talked to any protential customers? If not how are you going to look for customers? I am not the type of guy that goes door to door and in fact I have never had to look for work haying. I bought my equipment to use at my ex's familys farm. When I first got the baler it was dropped off in my driveway and by the end of the day I had my first customer (who really ended up propelling me to where I am now, poor and stupid;) ). Actually, he has been great to me and without him I would have had to do a lot more work fixing up my own fields. But he just saw my baler and he needed someone to maintain his farm as he only wanted 3-500 bales for his own use out of 50 acres of hay ground. I charged him cost for his bales and help put them up in his barn and the rest of the hay is where I make my money. I invest money back into his ground though by planting new fields (fields that needed to be turned over) and fertilizing and limeing the ground. He is happy and we are actually quite close now. He doesn't have any horses anymore and just resells the hay we put up for him. He wants me to buy his farm when he is ready to sell as he is very old and right now he is not doing very well. I would love to buy his farm and give him and his wife life lease on the place as they have been great to me and it is a wonderful area that I could see raising my daughter there.

Basically what I am saying is if you like this work and have some work lined up then go for it. It was the best thing I ever did and in a few months my baler and discbine will be paid off and that is what I have been looking forward to.

I do wish you the best as this job is great, just make sure you have an open station tractor for raking and tedding on those great days when you have a wonderful breeze blowing thru the platform (a canopy keeps the sun off your head so you can enjoy the breeze even more). I use a cab tractor for cutting and baling but open stations for the rake and tedder. I did use a 2wd TN75 cab to rake once as it was my helpers tractor. She wanted the AC for when she had to rake (it was hot that day), but she had to leave early and I took over and just did not like it. Yeah, the AC was nice but I missed being outside:(
 
   / Custom Baling #9  
Hey Matt, sounds like I'm about halfway between you and blueriver. How much of your experience is in the hayfield? Around here we have quite a few custom balers, but the mix constantly changes as new guys come in to replace the ones who go broke of just give up on the hassles of weather, equipment and keeping decent hired help. That said there are some that have been doing it for years and make decent money at it. Make a business plan and look hard at the $$$. Equipment, $3 dollar a gallon off road fuel, transporting, labor, and finding customers is all part of it. Good luck and think about it real hard and then be ready to work real hard.:D
 
   / Custom Baling #10  
Robert_in_NY said:
try to figure out a schedule so that he can travel from one farm to the next in a somewhat orderly manner. Running equipment all over the place back and forth will waste time and money so a good schedule is very important.(

I have about 2 acres in hay, in our subdivision there are 16 places, about 6 have hay, most about 5 acres. So probably about 25 acres of hay all cut by the same custom cutter. He does his own place, our places and other leased ground etc. His places is about 5-7 miles from my place.

I just shake my head when he comes in, cuts 2 places, leaves for a few days, comes back and cuts a couple more. Same with raking, baling and stacking. Sometimes he will park the equipment and his helper will pick him up in a truck, other times he runs the swather or tractors back to his place or where ever he is going next. At the price of fuel it makes me wonder how he can justify cutting all these small places. Although I am glad he does ;)


If you are going to get into the business I would pay very close attention to scheduling as Robert notes. Haying 200 acres scattered on 75 places is far different than haying 200 acres in a single field.

Charles
 
 
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