Ranchers know baling hay is expensive, however some ranchers still sell their hay for remarkably low prices. Throughout this article, I will refer to hay balers/sellers as ranchers. To produce a bale of hay, there are variable cost and fixed cost. Hay that is sold cheap only takes the variable cost in consideration. Let me back up some. Fuel, net, wire, labor, fertilizer, and herbicide are variable costs. As we all know, not all hay is fertilized and sprayed, thus some cheap hay does not have that added variable costs.
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