Saturday, September 27, 2008

This Should Be a No-Brainer

This information is really self evident, however, when you crunch the numbers, it becomes more like staggering.



A recent study performed by Penn State has published results saying that higher fertilizer costs are causing hay prices to skyrocket, (Duh!). But, before you click off to another part of the information superhighway, here is the kicker.



The study showed that the estimated value of one ton of grass hay is now $84. Whoa! This is the cost of the 50 pounds of Nitrogen (N), 15 pounds of phosphate (P), and 50 pounds of potassium (K?) each ton of hay contains. This does not include all the micro-nutrients.



The study used Pennsilvania custom machinery rates, estimating that it takes $35.70 in machinery costs to make a ton of hay.



Given a 2 ton per acre yield, adding pasture establishment costs (why they added that, I don't know) of $25.63 per ton and land rent at $30 per acre (again, why they added that, I don't know) you end up with a total cost of $160 per ton. This did not include the cost of spreading fertilizer.



Figuring 1000 pounds of hay in one large round bale, this would be an out-of-pocket expense of of $80 per round bale. Whoa!



Consider this: you can often buy hay for less than its fertilizer value ($42 a round bale) and this study did not include weather losses.



If you crunch the numbers and do a little "cipherin'", oyu may find that it is far better to buy hay from your neighbor than it is to make grow and make your own.



Or, you can go one step further, which is the direction that we are trying to go (slowly), and that is to get the hay out. We need to be insatiable readers and learn all we can about the new, old way to farm, on grass, with stockpiled stands to graze through the winter. Something to think about.

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