How to value a standing hay crop is challenging. Assigning an appropriate value includes the buyer and seller agreeing on the market value for the hay and then adjusting for harvest costs and other factors that contribute to the price of hay sold in the open market, some of which are challenging to quantify.
In this discussion we are considering just the single crop of hay that is ready to harvest. The grower’s base price equals the price they could receive for the crop from the hay market less harvesting/storage/marketing costs. Hopefully, this covers production costs and generates a profit. During price negotiations, it must be recognized that harvest risk is being shifted from the grower to the buyer, which should be applied as a further discount against the price paid by the buyer.
The following links provide details on how to calculate the value of forages in the field, considering the seller and buyer perspectives:
Detailed explanation for pricing perennial cool-season hay and annual warm-season grasses standing in the field – go.osu.edu/standinghayprice
Worksheet tool to calculate the maximum price the buyer should pay for standing perennial cool-season hay and annual warm-season grasses in the field– go.osu.edu/standinghayprice-tool
Detailed explanation for pricing oat or spring triticale haylage standing in the field – https://go.osu.edu/standingoatforageprice
Worksheet tool to calculate price of oat or spring triticale haylage standing in the field – https://go.osu.edu/standingoatforageprice-tool
Updated: 9/25/2019