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Are YOU raising Your rates?

This is a discussion on Are YOU raising Your rates? within the Horse Boarding forums, part of the Barns, Boarding, and Farms category

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        09-20-2012, 05:30 PM
      #31
    Weanling
    We had a semi-dry summer this year, but are by no means in a drought area, and our prices have gone up as well. We are now paying 5-6 per bale of hay (used to be 3) and feed has gone up 3$ per bag. I currently pay 350 for board, and expected an increase this year, but it hasn't come yet. I know the BO is planning to which to haylage, and has informed us that when that happens, there will be a 50 board increase. It doesn't bother me at all though. I'd rather pay 400 for good quality haylage, than 350 for poor quality hay. The BO had to make a 3 hour drive this week, just to scout out some possible hay sources as her usually providers were all out. I don't even think she's breaking even right now.
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        09-20-2012, 05:31 PM
      #32
    Trained
    Quote:
    Originally Posted by GhostwindAppaloosa    
    With the recent drought.. our regular hay prices of about 2.50-3.50 a bale are now between 10-14 a bale. These bales advertised at 50-60lbs are in reality (we weigh them every time we buy) 30-40 lbs.

    So lets be optimistic here and say they are 40 lbs .. for 10 a bale..

    Means we are paying .25 cents a lb. We offer 15 lbs a day to our boarders.. for a total of 112 a month for hay now vs previous .10 lb for 45.00 a month...


    We are still currently operating on hay we personally made.. which did cost us more this year as we didnt get as much off our land, but are going to have to find hay very soon here...

    We charge 250 a month for board which is the going rate in our area. But 40 minutes away it is 500-600 a month (bigger city)

    We really need to be at about 300 a month to cover costs with increased hay... but hate to have to raise it so much...


    What are you doing with the hay crisis.
    I raised my rates 3X last year. I've been used to paying about $40 for a 1500 lb round bale and aobut $3 for a 50 lb square of bermuda grass. By the end of last year, this spring, I was paying $200 per 800 lb round bale IF I could find one, and $16/50 lb squares.

    This spring after first cutting, I put up 3 semi loads of small squares, so approximately 48 tons of prairie grass at $4/bale, and I bought 80 1500 lb round bales at $80/bale. Most of my boarders have sold off their horses or those who had multiple horses have sold down to 1 or 2. I am not taking in new boarders to replace the old, have sold off most of my herd and we're going to be ok til next spring.

    I gave up trying to do anything but break even last year when those round bales when up over $100, I NEVER thought I'd see the day when I'd pay $200 for a crappy one and be ecstatic to have found it.

    Not only did hay go up but this drought has devastated the corn crop along with other grains and concentrated feed has gone up too. I feed Omolene 400 and it has gone from $7.50/40 lb bag to $16/40 lb bag. I go through 5 pallets at 40 bags/pallet during the winter. But! It keeps the horses healthy, fat and sassy and looking good all through the winter, so it's worth every dime I pay.

    Another side to the drought that most aren't thinking about is, after 2 years of it, my pastures are destroyed. When we start getting normal rain again, I'll have to completely turn under, re-seed and re-fertilize all of my pastures so the horses can have turn out and grazing again.

    Oh yeah, and my water bill went from about $100 month to keep everyone well watered to $250/month now because of the drought.

    So, it's not just as easy as driving to another state or province to get hay. And because it's sooooo wide spread, I'd have to go to Ky or TN or ???? Because the usual states we haul in from, CO, NE, MI, WI, they're all having a hay shortage too.
         
        09-20-2012, 05:41 PM
      #33
    Yearling
    Dreamcatcher- what is Omolene 400 I haven't heard of it before.

    I didn't realise how bad the drought is everywhere. So sad, I wish you all best.
         
        09-20-2012, 05:48 PM
      #34
    Trained
    Quote:
    Originally Posted by Spotted    
    Dreamcatcher- what is Omolene 400 I haven't heard of it before.

    I didn't realise how bad the drought is everywhere. So sad, I wish you all best.
    Spotted, Omolene 400 is a complete feed by Purina. It's designed to be fed instead of hay, in my case because the quality of the hay around here has been so poor, I feed it with hay. I use the hay around here pretty much as a belly filler and to give them something to do, rather than to depend on it for nutrition. I feed the Omolene as directed for weight & condition and then they get hay to keep them busy and happy. It's not a cheap way to feed but I made my mind up years ago that the most expensive feed was still cheaper than frequent vet calls and I've stuck with it and had pretty good success.

    Here's a link:
    Purina Horse Feeds - OMOLENE

    I think it was you who asked how much we're paying for dewormers? I just got an e-mail from Valley Vet today for Ivermectin at $1.99 and buy 6 get one free. I'll be ordering around 100 of those and they also have Quest Plus on sale for 10.49 a tube, so I'll be ordering about 25 of those. I stock up when the sales come around.
         
        09-20-2012, 06:00 PM
      #35
    Yearling
    Dreamcatcher- thanks for the info. That's a better price than mine, I was ordering from Jeffers Equine for 2.59 and chicks saddlery for 2.29. If I buy from here it $15.00 and up.
         
        09-20-2012, 08:18 PM
      #36
    Showing
    What boarders need to understand is that their board cost goes toward feed, insurance and building maintainence, not just feed. The oil companies have been hanging us out to dry with continual price increases which affects the people who may our hay. Drought means trucking it in greater distances. The truckers had to raise their rates to cover their increased fuel costs. We had drought one year and hay tripled in price because of the hauling distances. I had the good fortune to find a good supply of two year old clover hay for cheap. I picked up 80 bales of beautiful oat straw and with a little sweet feed that's how my horses came thro that winter, fat and sassy. You can feed each horse a flake of oat straw per day as he needs the roughage. There is often a few oats in it which will add a very small amt of protein.
    Spotted likes this.
         
        09-20-2012, 08:56 PM
      #37
    Yearling
    (carefully skirting the other issues here) Yes OP you should raise your board. Heck, my BO had to raise us $30/month and she grows her own hay. But this drought is so bad here she couldn't sell any of the excess and has had to hang on to every bale they produced this year. Add into it diesel at $4.00 a gallon and rising electricity costs-I frankly don't know how she does it. She was downright embarrassed when she told us she was upping the board on Jan 1. 2013. I told her that she runs a business and that I understood why she had to do it.
    maura and Nitefeatherz like this.
         
        09-20-2012, 10:15 PM
      #38
    Foal
    A sampling of hay prices in Southern California -- all of these bales are stated to be between 105 and 112 pounds:

    Alfalfa, first cutting - $16.75
    Bermuda, first cutting - $15.75
    Orchard, second cutting - $24.00
    Timothy, second cutting - $24.00

    And these are the pickup prices -- it's a dollar more per bale for delivery.

    The boarding prices where my horse is went up and I applaud the owners' decision to do so. I love my barn and I don't want them to go out of business!
         
        09-20-2012, 10:29 PM
      #39
    Foal
    I think that if you need to raise your rates to keep up with the rising costs...then go for it.
    I'm in Nebraska and we've been hit hard by the drought...totally brown and dead corn fields everywhere, hay prices rising. I've seen lots of people selling their horses and mentioning the rising hay cost and getting the horses to a new home before winter :(
    We only lease but I feel for everyone affected by the drought who is trying to keep up!
         
        09-20-2012, 10:43 PM
      #40
    Weanling
    Just read through all the posts. I don't think many understand what goes into making hay. We personally do hay some of our own land. We normally get about 600 bales off our land in 3 cuts....
    This year we got 250...

    What people do NOT understand is that no matter if we normally get 600.. or 10.. the cost to actually hay the field costs teh same. The tractor still has to run across the WHOLE field. ... cut it.. rake it... bale it. So the cost to produce does not change. Add into that the cost of fuel. I don't even want to think about what it cost us to produce thehay this year. I was just happy we had a field to hay.

    We normally can cut some costs with some pasture grazing.. but there was none of that this year. Horses have had to be hayed all summer this year.

    We'd love to be able to get hay elsewhere cheaper but the truck gets 6 miles to the gallon and can only haul 200 bales at a time. IF it were possible to get hay cheaper we certainly would take the extra time and labor to get it. Its just NOT available. Not even looking at price. We might not even be able to buy hay for ANY money. We are trying to find hay now. And unfortunetly money comes in monthly and I have to buy hay for a WHOLE winter at once if possible. There is a lot of upfront cost in that. Im honestly at the point of closing down shop for winter as I don't think its going to be economically possible to provide for boarders. Im going to have a hard enough time finding hay for my own herd.
    themacpack and Speed Racer like this.
         

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