Right Time, Right Price

The way the weather played out this summer meant that just after the bulk of harvest was completed there was a realisation for some people that due to the drought they would run short of feed. Buying the bulk of your feed out of season (not just the odd inevitable small top up) is a bad situation to be in if high demand and limited supply at the time drives prices upward. It reinforces the fact that there is no cheaper time to buy than when it is made. Keeping a surplus portion of supplement on hand requires an initial investment into feed that of course may not be used in the short term, but in the long run gives you a buffer to be insulated from peak demand times. Below is a generic example of the difference in the delivered price of a bale of straw either at harvest time (straight from the paddock) or during winter (from under a cover or shed).

Large square Claas 3400 bales of barley straw purchased post harvest time from under a cover and delivered from a stack site to your farm:
Royalty $20.00
Raking/Bale/Stack (in paddock to weather proof) $22.00
Cartage (to a stack site) $8.00
Covering/Stacking (at stack site) $5.00
Uncovering/Cartage $10.00
Total $65.00/ bale

Large square Claas 3400 bales of barley straw purchased at harvest time and delivered from the paddock directly to your farm:
Royalty $20.00
Raking/Bale/Stack (in paddock to weather proof) $22.00
Cartage (to your farm) $8.00
Covering/Stacking (at your farm) $5.00
Total $55.00/ bale

If you applied the $10/bale saving to an order of 500 bales:
$10 x 500 bales = $5,000 saving
$55 x 500 bales = $27,500 initial cost
$27,500 x 6%pa = $1,650 over 6 months
$5,000 Р$1,650 = $3,350 saved and no exposure to the  winter straw market!