Detailed Cost Analysis of Hay Production

What happens here

Josh presents a detailed cost analysis for cutting hay on his 85 acres. He calculates that fertilizing with Triple 17 at 300 pounds per acre would cost $6,885 annually ($534 per ton). Liming, which is required twice a year at 2 tons per acre, would cost $20,400 annually ($60 per ton). This totals over $27,000 for soil amendments alone, not including the tractor or equipment. Equipment costs for a small operation are estimated: a used baler at $10,000 (new $35k-$60k), a used hay cutter at $5,000, a used rake at $2,000, and a used tedder at $2,000. Annual repairs are estimated at $200, and fuel at $200. Labor is calculated at 70 hours per year (30 for cutting, 7 for raking, 14 for baling, 16 for loading/storing) at $15 per hour, totaling $1,050. These costs demonstrate a significant financial outlay compared to simply purchasing hay.

Goal: Quantify the financial investment required for cutting and baling hay on a small farm.