By Blake Jackson
In May, Rachel Hopkins, an agricultural business field specialist with University of Missouri Extension, worked alongside her father to harvest and wrap wheat and clover baleage on their east-central Missouri farm. Once the work was complete, her father made a practical request: “When you get a chance, figure out what this feed cost us,” Hopkins recalls.
While she regularly tracks the farm’s hay production, Hopkins hadn’t previously calculated the cost by individual field. But she says doing so is vital.
“Even if you're just feeding your own livestock, it still matters,” Hopkins explains. “If you can buy feed cheaper than you can make it, you’ll save money-and time. And as we all know, time is money. If you’re selling extra hay, and you’re selling at a loss, it is not good business practice.”
To supplement winter feed for their cattle, Hopkins and her father chose baleage over feed tubs or grain. They used the MU Extension Mixed Hay Budget to determine cost per acre.
Their 4x4 bales, each weighing 1,100 pounds, produced 3.42 tons or 6.21 bales per acre. Using the budget, they calculated:
Operating Costs (per acre):
- Seed: $30
- Fertilizer: $31.71
- Herbicide: $10
- Custom hire/equipment rental: $95.80
- Fuel: $2.20
- Repairs: $8.96
- Labor: $37.99
- Interest: $9.21
- Total Operating Cost: $225.87
Ownership Costs (per acre):
- Overhead: $5
- Machinery ownership: $14.05
- Land charge: $17.50
- Total Ownership Cost: $36.55
Combined Total: $262.42 per acre
This translates to $76.73 per ton or $42.25 per bale. Hopkins plans to further refine the analysis once forage test results are in, calculating the cost per pound of dry matter. “That will help us compare this baleage to other feed options,” she says.
Hopkins reminds fellow producers, “It might feel money is growing on trees right now with high cattle prices, but don’t be fooled: Hay production takes a lot of time and money.”
Farmers are encouraged to use MU Extension’s forage budgets or reach out to their local ag business specialist.
Photo Credit: gettyimages-pamwalker68
Categories: Missouri, Crops, Hay & Forage