Buy or Grow Hay?

Some producers were created to raise livestock. Other producers were created to grow hay. But Alan Miller, University of Illinois Extension animal specialist, quips not all producers were created to do both. Beef producers making the decision must take into consideration factors like feed quality, weather and nutrient flow, along with labor, cash flow and business flexibility.

"Producers who want to successfully raise hay must determine what the cost of production will be and have a clear understanding of the hay market in their area before deciding whether they are better off to buy or grow hay," Miller told attendees at the Illinois Forage Institute in March.

Miller notes when you raise hay, you have more control over production quality and must feed the quality produced. But when you buy hay, you have the flexibility to buy the exact quality you need, but must determine if that quality product is available and affordable in your area.

"When you raise hay, you are at the mercy of the weather for both quality and quantity. Your schedule must be flexible enough to work with the weather. You will also need to monitor and replace nutrients removed from hay ground," he says. "When you buy hay, local weather is less of a consideration and you are bringing additional nutrients onto the farm in the form of hay."

Miller adds that producers should consider whether they want to be locked into hay as a feed source and commit ground to producing hay or utilize the ground to manage more cows. Hay buyers also have the ability to buy alternate forage and feed sources if hay becomes expensive.

"You also need to decide if you want the job or have kids who want the job. Put a value on your time," he says. "When you raise hay, you must be willing to have cash tied up in equipment, and don't forget about the interest and depreciation costs included with the equipment. Hay buyers need cash available at the right time and must manage market fluctuation."