West Union, IOWA FLOLO Farm 52175 | Paul. you wrote--
" I can sell a bale of hay for $2.00, and charge 50 cents to deliver & stack it. Or I can sell a bale of hay for $2.50, and offer free delivery..... Either way, cost comparisons will have to factor in the transport & handling - they are there. Right? Either way, the cost of transport is part of the cost of hay, right? "
That is probaly the best description{that you'll understand}I could give of what I'm doing and trying to relate vs a way you think I'm doing and ending up with massive piles of grain on the ends(still don't know why you'd think a guy would have ever comptemplated that in the first place?) But first and foremost I stated early on in the thread that some of the figures I put are just for easier comparision,and some for ease of figuring since I was responding to a "blanket statement" I have no problem defending my position on the GROWING side and I won't address drying since it's kinda hard to know whether your going to have to dry something or not( a "variable" that apparent is a touchy subject for some).
As I'd see it $2 is your picked up bid, simple enough.
Buyer 1 accepts it, your happy
all a sudden buyer #2 call and he'll offer you $1 a bale more to haul it 10 miles further then #1
If you did what I'm trying to suggest,I know my basis on # 1 is $.50 and my basis for # 2 is $1 I get to decide whether --
A- I can let either pick it up
B-I think I can make a little hauling and stacking at #1
C-I make better use of my equipment cause I know the hay can be loaded,hauled and stacked for $.50 and hauling it another 10 miles is only a % of the original $.50, and sell to #2
With all that said, I'd sell to #2 what would you do? And would you say it cost you more to GROW the "hay" under which Scenerio?
All I've been trying to suggest in the whole thread is you have to know your personal fild by field "basis" is and don't know why it's that hard to grasp for some.
As for the rest of your ?'s go back and read alot of the replies on the original post, I never said "ignore cost" or 'pile grain' or anything like that.
http://talk.newagtalk.com/forums/thread-view.asp?tid=40032&mid=2857...
and Paul, you also wrote--
"Your arrangement of picking up the crop in the field by the buyer is pretty much unheard of around here, so not something I'd bother to pencil out. Different conditions in different locations."
Have you ever asked about it? (Locally or how do you decide whether to build more storage or pile it on the ground if you don't have time to deliver?
1 Buyer I deal with regularly bid $.02 more If you don't deliver and they don't have to handle it(scale,pits and legs all cost them money to run, Don't they? so if they don't have to run them why not pass on the savings? If they are willing to pay more,and cost me less how's that factor into "GROWING" a crop?
I've stressed all along I figure it the way I do to elimiate 'VARIABLES' to truely compare growing cost of 2 different crops
A couple more examples for you that might make a point--why you might want to look at it the way I do vs your lumping it all as expense
--Grow corn for silage, it certainly cost me more to "GROW" it then beans, but they'll harvest it haul it and even haul manure back on if you negotiate with them. Works for me and they surely don't care about shrink.
-- I grow corn 30 miles away for a guy, same yeild and expense as my corn in front of his door. He sells his and buy's mine, why? It cost us the same to GROW it? but it cost him more to deliver it. Also Works for me.
Back later, gotta keep the smile on the wifes face--loran
Edited by loran 2/16/2008 21:15
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For Loran: Cost of growing c & sb
