Minimizing Losses in Hay Storage and Feeding - MSUcares

Storage buildings may providebenefits in addition to those whichresult from storing hay. For example,part of a haybarn might beused for otherpurposesduring aportion of theyear. Furthermore,theoverall value ofa farm shouldincrease withthe addition ofa hay barn.Bale densityis anotherimportantconsiderationaffecting thecost effectivenessof barnstorage. Thedensity of small rectangular bales isusually around 9 pounds per cubicfoot, while the density of large roundbales can vary from less than 5 to morethan 10. Even when high densityround bales are used, at least a thirdless round bale hay than rectangularbale hay can be stored in a givenstorage structure due to the wastedspace between bales.When a storage facility isconstructed for round bale storage,dimensions should be based on thediameter and length of the bales thatwill be stored. For such structures, adesign which does not require interiorroof-supporting poles is desirable sothat equipment operation will notbe impeded.Costs And Risks Of Barn StorageThe cost of building a hay storagestructure can vary greatly. Comparisonsof structures of various types and sizesshould be made on a cost-per-squarefootbasis. Material costs are higher insome areas than others, and climatelargely determines siding costs. Even inOn many farms, particularly in the eastern United States, reduced hay storage losses can providepayback on barn construction within a few years.high rainfall areas at least one sidemay be left open without significantadverse results.Labor costs typically account foraround 35% of the cost of erecting ahay storage structure. Thus, a producerwho can provide most or all of thelabor for building a storage structurecan substantially reduce out-of-pocketconstruction expenses.Costs other than construction whichare associated with barn storage aregreater than might be expected. Beforemaking decisions regarding erectingstorage facilities or pricing hay whichhas been stored inside, the followingitems should be taken intoconsideration.Shrinkage- Hay which has beenstored inside for several months willtypically lose 5 to 10% of its weight ascompared to freshly baled hay due to acombination of dry matter loss andmoisture loss.Depreciation- The economic valueof a building declines steadily overtime. Generally, depreciation is consideredto be around 5% of the initialvalue per year.Interest oninvestment- This is“opportunity cost”or the amount ofreturn which couldhave been madewith the moneyused to build astorage structure if ithad been investedelsewhere.Repairs- A goodfigure to use is thatapproximately 1 to2% of the value of abuilding mustannually be spenton repairs. Most ofthis will occurduring the latterpart of its useful life.Taxes and insurance- Taxes varygreatly with location, so to determinetax costs a producer should check withlocal officials. Having insurance on astorage facility is generally advisable,but each producer must decide whetherhe needs it and, if so, how much. Somefarm policies may cover such additionalbuildings at little extra cost. Often thecombined costs of taxes and insuranceamount to about 1% of the averagevalue of the building over its useful life.Other- If a barn has an earth floor,water from outside should not beallowed to run under the hay. Otherwise,spoilage will occur on the bottombales even though the hay is undershelter.Bale dimensions, how high baleswill be stacked, and the anticipatedlength of usefulness of the storagefacility will also affect the economics ofbarn storage. For example, if a buildingcosts a certain amount per square foot10