Should I make my own hay or purchase it?

By Sarah Varney, Vita Plus dairy goat specialist

Rising feed costs have become a growing concern for dairy goat producers, prompting many to evaluate one of their most critical and expensive inputs: hay.

Is it cheaper to grow your own hay or does purchasing provide better economic value? This decision can significantly affect your bottom line.  It is important to understand the economics behind each option to make an informed, cost-effective choice.

Making your own hay

According to a survey by Iowa State University Extension and Outreach, the estimated cost to produce one acre of alfalfa in the Midwest in 2024 was $557.48, with an average yield of 2.73 tons per acre. What goes into that cost, and how reliable is that number?

Here are four critical hay production factors to evaluate on your operation:

• Yield and quality: The average yield on your operation will depend on the quality of forage you’re trying to make.  Focus on producing more than 180 relative value (RFV) hay to ensure quality.
• Variable costs: This includes seed, fertilizer, pest management and fuel. These costs change yearly, sometimes drastically, due to economic factors.
• Fixed costs: This includes land rent and maintenance, machinery, and labor. For labor, the average wage rate is $19.00 an hour. Are there aspects of your operation that are neglected due to the time and energy put into producing high-quality forage?

High-quality forage is one of the most important parts of a productive dairy goat’s diet.  If you ultimately decide to make your own hay, it is important to understand the out-of-pocket costs. Additionally, consider what tools are available to optimize forage quality on your farm. For example, applying a proven quality silage inoculant to baleage can preserve nutrients and limit spoilage in this valuable feedstuff.

Purchasing hay

If you choose to purchase hay, the price will depend on the grower’s cost of production as well as the yield and quality of the forage.

Items to evaluate:

• Market considerations: Purchasing forages puts you at the mercy of what’s available on the market and the quality available on an auction or private sale.
• Variable costs: The cost of seed, fertilizer, pest management and fuel play an important role in pricing.
• Relying on someone else: Simple things like forage quality and quantity of wrapped baleage can greatly impact the quality of forage you feed.  Purchasing your forages means you rely on someone else to properly pack, wrap and store your forages.

According to Iowa State University Extension and Outreach, the average cost of Midwest hay with 180 RFV or more is approximately $180 to $230 per ton. A guide to pricing haylage and baleage by Lauryn Krentz, Vita Plus dairy and youngstock specialist, outlines how to evaluate the worth of another producer’s haylage and baleage by walking you through an example.

As always, reach out to your Vita Plus consultant to discuss making your own hay or what an appropriate price is for purchased hay.