Hi, question from novice farmer. I am understocked by choice as farming in addition to full time job. Neighbour has asked me would I be willing to lease land for silage bales which I am. What way should I price this? Looking online it seems to be price per acre but would I not be better off to charge per bale as that would be fairer on both parties as some of the land isn't as good as other parts. Not talking huge amounts here, approx 15 acres. I had intended baling it myself and selling but this would make it so much easier.
If charging per bale, what's fair? Another Neighbour here (similar land), baled last year and paid e12 to contractor including wrap and sold for e24. So in that case the grass is worth e12/ bale. Obviously as costs have gone up this year it will cost a lot more to get it baled but in terms of price of grass per bale am I in the right ballpark? Don't want to overcharge a good neighbour but don't want to be taken for a fool either !
The cost per bale is very variable, he could take a light crop off it and it might be bone dry, leading to a low bale count per acre, also the opposite could happen.
Personally the fairest way is per acre and a date to have it cut off by. Option to cover it with slurry after being cut could be an option to help with the P and K take off. Say 2000 gal/acre.
The date to have cut by gives you clarity as to when you will have after grass
Cost per acre is very dependant on grass and land type
Thanks for the detailed reply. Obviously I need to do a bit more research on the cost per acre so as have no idea what it's worth.
Have a word with the local auctioneer or mart they often have meadowing for sale. You could be looking to make a bit extra this year😉😉
€10 a bale was going rate last year around here
For a neighbour Without maps for one cut of silage with him supplying fertilizer take 70-80 euro an acre off him if it’s good ground that’s able to grow a crop of silage. I’d also ask him could he slurry it after he cuts it.
That sounds a fair price. Good to have benchmark if I do decide to go per bale, thanks
Didn't think of that! Good idea, thanks
Was no mention of fertiliser or slurry yet ..... it was more of an first approach from him. Will bring it up when we discuss next. Thanks.
I rent out 3 1/2 acres for 400. He fertilisers it and is putting out lime this year as well as killing off the weeds. He's looking to spread slurry after the first cut. Mainly due to the cost of fertiliser but I'm not complaining.
Land had been depleted when I bought it with the house so everything he's doing is improving it for me.
That sounds good especially as you say your land is getting lime and slurry also. In your case there's a second cut included in that price?
Setting land by the bale is probably one of the most unfair ways of setting land there is unless there’s a lot of trust between the 2 parties.
To give an example; say you have a man that knows he needs 100 extra bales. You’ve land to set so you give it to him at €10 per bale. He could take 8 acres from you, fertilise it well, have it cut by the end of may, get 12.5 bales an acre so you get €125 per acre and have your land back before June.
Equally the same man could have taken 20 acres from you, not bother with any fertiliser, leave it growing until the end of June and get 5 bales per acre. Now he still has his 100 bales, but you only get €50 per acre and you’re land is gone for an extra month.
If setting by the bale there’d want to be a fairly reasonable agreement to the terms and conditions.
I presume if setting the price by bale, then the owner of the land is in charge of the Fertilizer/Slurry etc and the renter is ultimately just buying the crop of grass off the top of it off them. If the renter is paying for the fertilizer etc then they'd surely always be paying a per acre cost
If he gets a second cut I've no issue with it. One year he, didn't.
Expect to be paying closer to €25 per bale so than the €10 quoted as last years price. Fertiliser alone would be €15-€20 per bale this year and obviously something for the land then as well.
I see they hope to announce a scheme today of €100 an hectare for growing silage, how does this scheme work if you are renting land for a cut of silage only?