Custom Baling

[bigbull338]

i hope you have all the baling equipment to start a custom balong business.because if you dont your going to spend alot of money.the baler will cost you $30,000 or more new the disk cutter wll cost $8000 or more depending on what size you get.the rake will cost $8000 more or less.then you may need a tedder if hay gets wet thats another $5000.balimg equipment will cost over $60,000 new.thats not counting your tractors.min of 2 tractors $100,000.so start up with new equipment is $160,000.would have to charge $22 to $25 a bale to break even an maybe pay for equipment.

 

[chh]

Hey Blueriver, will your guy come up to Haskell county? $15 a bale would be considered a steal around here. Most crews topped $20 a couple of years ago. Right now they are not even quoting a price for next summer. They are waiting to see where fuel is going to be. Most local crews run 4 tractors, 2 mowing, 1 rake and 1 baler. To get reliable hired help, if you need it, all tractors have to have cabs with air. Many are pushing net wrap, due to the faster wrapping, but pushes the cost up a $1 or so a bale. Most are shooting to do a minimum of 5000 bales a year. That puts mowers, rakes, and balers on a 2 year rotation (less for some guys, some try and push them longer) until the are traded for new ones.

Right now I'm still sitting on an extra 120 bales that I'd sell for not much more than baling costs just to move it.

 

[Z-Michigan]

i hope you have all the baling equipment to start a custom balong business.because if you dont your going to spend alot of money.the baler will cost you $30,000 or more new the disk cutter wll cost $8000 or more depending on what size you get.the rake will cost $8000 more or less.then you may need a tedder if hay gets wet thats another $5000.balimg equipment will cost over $60,000 new.thats not counting your tractors.min of 2 tractors $100,000.so start up with new equipment is $160,000.would have to charge $22 to $25 a bale to break even an maybe pay for equipment.

Uhhh... I guess that's one way to do it. There are people on here who bought all their equipment used at auction and have a full setup for like $10k or so. Sure it's old and requires more repairs, but it's possible. I think one member who does this is "zzyp6m" or something like that.

We hire our hay out to a local farmer who usually cuts and bales at the same time he does his own fields. We don't bug him on exact dates and accept hay that might be slightly past optimum, and he doesn't charge us that much. Eventually we would like to have our own hay equipment, but it will have to be bought at low, low auction prices to make any sense for our 10 acres of hayfield. I can see doing hay for a few locals as quite practical, if they're easy to deal with. While I have zero experience as a real farmer or custom harvest operator, to do it as a traveling custom cutter seems to me a very risky way to try and make money - become a truck driver instead, you'd make more, be home at least as much, and not have to buy so much equipment. =)

 

[blueriver]

Hey Blueriver, will your guy come up to Haskell county? $15 a bale would be considered a steal around here. Most crews topped $20 a couple of years ago. Right now they are not even quoting a price for next summer. They are waiting to see where fuel is going to be. Most local crews run 4 tractors, 2 mowing, 1 rake and 1 baler. To get reliable hired help, if you need it, all tractors have to have cabs with air. Many are pushing net wrap, due to the faster wrapping, but pushes the cost up a $1 or so a bale. Most are shooting to do a minimum of 5000 bales a year. That puts mowers, rakes, and balers on a 2 year rotation (less for some guys, some try and push them longer) until the are traded for new ones.

Right now I'm still sitting on an extra 120 bales that I'd sell for not much more than baling costs just to move it.

WELL NOW That would be up to him!!! I just don't know how he does it, its not net wrapped but they are real good tight big bales from his J.D. Baler. I have not asked about next year, I assume it will be a few more dollars! The only down side is I usually call to get on the schedule and watch the weather, and then wait ... he's pretty good about it, get's here and gets it done.

When he comes, 1 ton dually with a large flatbed Loaded with equipment, another truck pulling the rake, two tractors, cutter and baler and his wife comes with the car then runs around to get things for the crew!! I can only imagine his cost! Last cutting the PTO Drive on the baler was bad, so he had to order one, went to a friend got his, did mine and then he told me the parts were $1500!

Those 120 Bales will sell, just be patient!! I watched on ebay some hay Just south of me in Texas bring $46.00

Hey keep that price ya'll are paying real quite ... I would hate for that News to drift south!!

 

[Farmwithjunk]

i hope you have all the baling equipment to start a custom balong business.because if you dont your going to spend alot of money.the baler will cost you $30,000 or more new the disk cutter wll cost $8000 or more depending on what size you get.the rake will cost $8000 more or less.then you may need a tedder if hay gets wet thats another $5000.balimg equipment will cost over $60,000 new.thats not counting your tractors.min of 2 tractors $100,000.so start up with new equipment is $160,000.would have to charge $22 to $25 a bale to break even an maybe pay for equipment.

WHEW! Glad you aren't running the show at my place! I'd be busted broke by the end of day one!

I've baled for 20+ years with a Deere 336 baler that I could replace today for $2500. I've got an MF #12 baler I just bought that I paid $1600 for. New Holland 257 RollAbar rakes Average (in good condition) around $1200. New Holland mower conditioners in good shape, maybe $2000. I can't run but one tractor at a time, but let's say 2. I can buy decent MF150's like mine all day long at $5000 ea. My 60 hp Deere 2440, maybe $10,000 for a MINT one. That's TWO balers, TWO tractors, a rake and a moco all for $22,300. About 1/7th the start-up cost of YOUR hayin' operation. And you know what? Not only do I THINK I can do it for what I quoted, I HAVE BEEN DOING IT for less than that for years. I could add a NICE used round baler for another $4000 to $5000.

Long story short, around $25,000 you're good to go with nice dependable used equipment. No one in their right mind would go into a start-up small scale custom baling operation with NO established customers and a $160,000 of initial overhead.

 

[chh]

Hay is a roll of the dice. Last year I could have sold everything I could get baled for $75 to $100 a bale. This year struggling to get the last of it sold even discounting it. We generally make 500 bales or a little over and could turn 700 or so if we tried. Only need about 100 to 120 for myself so far. Will probabably be back in all my own equipment by spring(have already bought some). I wouldn't buy old stuff for myself and sure wouldn't recommend it for somebody trying to do custom. In hay, time is money and quality counts. Breakdowns and weather can each your lunch in a hurry. I already have the tractors and figuire I will have around $40,000 to $45,000 in hay equipment alone if I take the plunge.

 

[bigbull338]

yes you can buy all used equipment for that price.an if shes not in top shape break down on you in the field.i was looking at it from the starting with new equipment from scratch.but ive learned the hard way you dont buy some1 elses problems.for the last few years ive had custom balers bale the hay.an they charge $20 a bale.an they do break down in the field.but thats ok.

 

[blueriver]

WHEW! Glad you aren't running the show at my place! I'd be busted broke by the end of day one!

I've baled for 20+ years with a Deere 336 baler that I could replace today for $2500. I've got an MF #12 baler I just bought that I paid $1600 for. New Holland 257 RollAbar rakes Average (in good condition) around $1200. New Holland mower conditioners in good shape, maybe $2000. I can't run but one tractor at a time, but let's say 2. I can buy decent MF150's like mine all day long at $5000 ea. My 60 hp Deere 2440, maybe $10,000 for a MINT one. That's TWO balers, TWO tractors, a rake and a moco all for $22,300. About 1/7th the start-up cost of YOUR hayin' operation. And you know what? Not only do I THINK I can do it for what I quoted, I HAVE BEEN DOING IT for less than that for years. I could add a NICE used round baler for another $4000 to $5000.

Long story short, around $25,000 you're good to go with nice dependable used equipment. No one in their right mind would go into a start-up small scale custom baling operation with NO established customers and a $160,000 of initial overhead.

I like this better than the $160K, custom baling will work you and you gotta like work!! For me I use 200 round bales a year at last yrs price of $15 it cost me $3K, plus my time and fuel to bring it in. Sooo ... it would only take me 8.3 yrs to pay for used equipment, or 53.3 years to pay for that new stuff!

I have other things to do or what I mean is other things I would rather do.

 

[Robert_in_NY]

yes you can buy all used equipment for that price.an if shes not in top shape break down on you in the field.i was looking at it from the starting with new equipment from scratch.but ive learned the hard way you dont buy some1 elses problems.for the last few years ive had custom balers bale the hay.an they charge $20 a bale.an they do break down in the field.but thats ok.

Not all used equipment is someone elses junk. People upgrade equipment because of various reasons. Not all of them are because their equipment is junk. What good is having $100k worth of tractors if one little electrical problem shuts down your operation? I like new tractors but from my experience, older tractors can be much more reliable as they don't have the electronics.

Here are a few reasons why people sell their "junk" equipment. They have retired, upgraded to larger or smaller machines, have a 2 year turn over plan, needed a tax deduction and last but not least, just plain wanted to trade (new paint syndrome).

I think the main piece of equipment that you want to make sure you buy something good is the baler. Tractors are a dime a dozen and you can borrow or rent another in time of need. Finding another baler when you are in a bind is not as easy.

I do agree two tractors are better then one but for a start up it isn't required and if your reason for the second tractor is for raking/tedding you don't need a $40-$50k tractor for that task. Buy a nice old Ford or such for $4-$6k, put a canopy on it and go. You baling tractor is the one you want a cab on so it will cost more but you can get great 2wd cab tractors from 70-120hp for $12-$16k. Start out with decent used equipment but spend your money where it counts. Then as you build a customer base and can see a profit then look at upgrading if needed. Otherwise store the money away for when you have a major breakdown where it doesn't make sense to repair.

I will say this though, what ever he buys he has to make sure he goes thru it all as he will open himself up to a lot of liability if he cuts a farmers field and his equipment breaks down and they lose the crop. The farmer is now stuck with no hay and the custom operator is the one who will have to answer to him.

 

[blueriver]

Not all used equipment is someone elses junk. People upgrade equipment because of various reasons. Not all of them are because their equipment is junk. What good is having $100k worth of tractors if one little electrical problem shuts down your operation? I like new tractors but from my experience, older tractors can be much more reliable as they don't have the electronics.

Here are a few reasons why people sell their "junk" equipment. They have retired, upgraded to larger or smaller machines, have a 2 year turn over plan, needed a tax deduction and last but not least, just plain wanted to trade (new paint syndrome).

I think the main piece of equipment that you want to make sure you buy something good is the baler. Tractors are a dime a dozen and you can borrow or rent another in time of need. Finding another baler when you are in a bind is not as easy.

I do agree two tractors are better then one but for a start up it isn't required and if your reason for the second tractor is for raking/tedding you don't need a $40-$50k tractor for that task. Buy a nice old Ford or such for $4-$6k, put a canopy on it and go. You baling tractor is the one you want a cab on so it will cost more but you can get great 2wd cab tractors from 70-120hp for $12-$16k. Start out with decent used equipment but spend your money where it counts. Then as you build a customer base and can see a profit then look at upgrading if needed. Otherwise store the money away for when you have a major breakdown where it doesn't make sense to repair.

I will say this though, what ever he buys he has to make sure he goes thru it all as he will open himself up to a lot of liability if he cuts a farmers field and his equipment breaks down and they lose the crop. The farmer is now stuck with no hay and the custom operator is the one who will have to answer to him.

Now thats good sound advice, and I suppose one could start with just one good cab tractor? Just have to hook and unhook more.