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Summer hay pricing


Wed, May 25th, 2011
Posted in Agriculture

Extension Notes

With snow still on the ground I received my first inquiry on, "How to charge for standing hay?"

Merv Freeman was an Extension Farm Management Specialist when I first started working for Extension. A formula he often used was, "Hay ground for the entire summer should rent for 125 percent of crop ground." This assumes a good stand.

The follow-up to that was the hay distribution in a three-cut system; 45 percent would be first crop, 30 percent second crop, and 25 percent third crop. As you will notice later in this column, the University of Wisconsin's distribution is slightly different.

To use the 125 percent formula there is also a need to know what crop land is renting for in your area. Because hay is very much a local market, the more livestock in the neighborhood, the better this will work.

Other ways of pricing hay can be found in the Selected Farm Rents, Rates, and Values, which is part of the U of MN Extension Farm Resource Guide 2011.

Hay Field Rent: Cash rent: 25 - 40 percent higher than the average annual cash rental rate in the area. For one cutting of hay a charge of 30 - 40 percent of the annual rent is appropriate. Early cuttings are usually worth more than later cuttings. Share rent: Tenant receives 40 percent of the crop and the landlord 60 percent, provided the landlord is responsible for the crop's establishment and its fertility. If not, the landlord's share should probably be 40 - 50 percent.

I have heard comments that when small square bales are involved, the split on shares should be more like 60-40 with the person doing the labor receiving 60 percent, and the landlord receiving 40 percent.

Another source of information is the University of Wisconsin publication, How to Price Standing Forage can be found at http://ipcm.wisc.edu/Portals/0/Blog/Files/18/526/Pricing-stand-hay-FOF.pdf

Due to the number of people taking more than three cuttings they had a chart showing the approximate yield distribution for three and four cutting systems:

Extension Notes

By Jerrold Tesmer, Extension Educator for Fillmore/Houston counties

With snow still on the ground I received my first inquiry on, "How to charge for standing hay?"

Merv Freeman was an Extension Farm Management Specialist when I first started working for Extension. A formula he often used was, "Hay ground for the entire summer should rent for 125 percent of crop ground." This assumes a good stand.

The follow-up to that was the hay distribution in a three-cut system; 45 percent would be first crop, 30 percent second crop, and 25 percent third crop. As you will notice later in this column, the University of Wisconsin's distribution is slightly different.

To use the 125 percent formula there is also a need to know what crop land is renting for in your area. Because hay is very much a local market, the more livestock in the neighborhood, the better this will work.

Other ways of pricing hay can be found in the Selected Farm Rents, Rates, and Values, which is part of the U of MN Extension Farm Resource Guide 2011.

Hay Field Rent: Cash rent: 25 - 40 percent higher than the average annual cash rental rate in the area. For one cutting of hay a charge of 30 - 40 percent of the annual rent is appropriate. Early cuttings are usually worth more than later cuttings. Share rent: Tenant receives 40 percent of the crop and the landlord 60 percent, provided the landlord is responsible for the crop's establishment and its fertility. If not, the landlord's share should probably be 40 - 50 percent.

I have heard comments that when small square bales are involved, the split on shares should be more like 60-40 with the person doing the labor receiving 60 percent, and the landlord receiving 40 percent.

Another source of information is the University of Wisconsin publication, How to Price Standing Forage can be found at http://ipcm.wisc.edu/Portals/0/Blog/Files/18/526/Pricing-stand-hay-FOF.pdf

Due to the number of people taking more than three cuttings they had a chart showing the approximate yield distribution for three and four cutting systems:

Extension Notes

By Jerrold Tesmer, Extension Educator for Fillmore/Houston counties

With snow still on the ground I received my first inquiry on, "How to charge for standing hay?"

Merv Freeman was an Extension Farm Management Specialist when I first started working for Extension. A formula he often used was, "Hay ground for the entire summer should rent for 125 percent of crop ground." This assumes a good stand.

The follow-up to that was the hay distribution in a three-cut system; 45 percent would be first crop, 30 percent second crop, and 25 percent third crop. As you will notice later in this column, the University of Wisconsin's distribution is slightly different.

To use the 125 percent formula there is also a need to know what crop land is renting for in your area. Because hay is very much a local market, the more livestock in the neighborhood, the better this will work.

Other ways of pricing hay can be found in the Selected Farm Rents, Rates, and Values, which is part of the U of MN Extension Farm Resource Guide 2011.

Hay Field Rent: Cash rent: 25 - 40 percent higher than the average annual cash rental rate in the area. For one cutting of hay a charge of 30 - 40 percent of the annual rent is appropriate. Early cuttings are usually worth more than later cuttings. Share rent: Tenant receives 40 percent of the crop and the landlord 60 percent, provided the landlord is responsible for the crop's establishment and its fertility. If not, the landlord's share should probably be 40 - 50 percent.

I have heard comments that when small square bales are involved, the split on shares should be more like 60-40 with the person doing the labor receiving 60 percent, and the landlord receiving 40 percent.

Another source of information is the University of Wisconsin publication, How to Price Standing Forage can be found at http://ipcm.wisc.edu/Portals/0/Blog/Files/18/526/Pricing-stand-hay-FOF.pdf

Due to the number of people taking more than three cuttings they had a chart showing the approximate yield distribution for three and four cutting systems:

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