UT Extension News: Paying for a Barn You Never Build

December 2, 2022

Since 2006, 153 hay barns have been built in Smith County with cost-share assistance from the TN Ag Enhancement Program. Most of those barns are still in use, and once producers see the value in storing hay in the dry, they often decide to build multiple barns to keep their hay from rotting in the elements. On the other hand, there are others who may very well have paid for a hay barn that they never built.

What do I mean by “paying for a barn you never build?” Let’s look at some numbers. Hay stored outside on the ground is obviously exposed to the elements, and the wind, rain, and snow will lead to significant dry matter loss, not to mention quality losses.

Consider the fact that the outer 18 inches of a 6 ft. diameter bale contain 75% of the bale, while the inner 3 ft. is only 25% of the bale. When that outside layer rots and either falls off when transporting it to the feeding site or is trampled by cows who won’t eat it, then the majority of that roll of hay is lost. Think about all the time, hard work, frustration, and money it takes to grow and harvest a roll of hay to only get 25% of your effort.

Let’s say you don’t lose the entire outside 18 inches, though. Say you only lose the outer 4 inches. That’s still 25% of the bale. How nice of a hay barn could you build for 25% of your hay crop’s value?

To answer that question, I looked at some data presented by Dr. Lisa Baxter from the University of Georgia during our June Forage Series Webinar. That webinar, as well as all our others, can be found on our YouTube channel. Dr. Baxter shows that if your hay is valued at $100/ton (which is cheap based on the current hay price), and outside storage loss is 20% (again a conservative estimate), the breakeven barn cost is $13/square foot. I know building prices have skyrocketed in the last couple of years, but you can still build a really nice barn for less than $13/square foot.

Keep in mind that in this example, that 20% that is lost due to outside storage has to come from somewhere. You either have to buy or produce extra hay to account for so much being lost, or purchase supplements to get animals through the winter. In other words, you are still paying for a hay barn, even if you don’t build one.

I can’t think of many other ag commodities that are commonly stored outside, yet a lot of hay still is. Can you afford to build a hay barn? If you put a pencil to it, you might find you’ve already paid for one. For more information on forage production, reach out to the University of Tennessee Extension office at 615-735-2900 or find us online at smith.tennessee.edu.