Evaluator for Round Hay Bale Storage

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Abstract
Round bales are a common method of handling and storage forages, yet many producers fail to use appropriate storage. The objectives of this work were to develop a decision framework and spreadsheet implementation of the framework useful for analysis of the many round bale storage options: outside storage, in-barn storage, group covering, individual stretch wrapping of bales, and manual bagging of bales. Costs due to added machinery, added labor, a structure, site preparation and maintenance, and bale covering were assessed and compared with the benefits from not storing hay outside. Generally, some protection from weather is profitable, but determination of the most profitable alternative requires an individualized analysis. A breakeven analysis showed that there are few situations where the net gain from building an open-sided barn is less than zero; however, in-barn storage may not always be the best option. Research Question Use of round bales for hay and silage is extremely common. Losses from storing round bales outside, on the ground, uncovered are usually high enough to warrant some storage facility and equipment. The objectives of this work were to develop a decision framework and present a spreadsheet implementation of the framework for evaluating hay storage options. Literature Summary Storage losses in round bales vary widely due to location, storage method, and duration of storage. With such variations and numerous storage options available, it is difficult to generalize as to the best storage method. Previous economic analyses left out some key factors and have not allowed evaluation of several of the options available. Most previous work has, however, indicated that some type of protection from weathering is generally better than “taking your losses.” Study Description This work lays out the procedure for, and gives examples of, how to determine which round bale storage option is best based on an engineering economic analysis. Benefits of reduced storage loss and improved value are compared with costs from added machinery, added labor, a storage structure, a prepared site, and covering material. Costs and benefits are expressed on an annualized ($/yr) basis. It is intended that advisors and producers will use this software to do evaluations with specific inputs from their operation. The procedure and spreadsheet implementation are not location or equipment specific and should be useful for exploring the storage alternatives in many areas. Applied Questions Should round bales be stored outside along the fence line or can one afford to protect them from the weather? Unless the hay has a value at harvest of less than $55/ton or experiences less than 15% loss during outside storage, it is difficult to identify scenarios where some protection from weather will be unprofitable. The protection offered by a dedicated hay storage barn, group covering of bales, or individual wrapping or covering will rarely cost more than the benefit received in terms of increased dry matter retention and increased value. Although some form of protection is almost always profitable, a detailed analysis is needed to determine which form of protection is the most profitable. Which is best: storing round bales in a dedicated hay storage barn, wrapping round bales individually, or storing them under a common cover? It depends on many factors such as labor and machine availability and cost, cost of barn construction, cost of covering materials, cost of site preparation, outside storage losses, and value of the hay to be stored. In some instances, a wrong decision can easily be made because evaluators only examine some of the variable costs. An example of a common mistake is to conclude that individual wrapping is best based on costs of wrapping material and the wrapping machine. A large part of the tot al cost, however, may be due to factors other than these (e.g., tractor, labor, site preparation); these factors are often overlooked. The spreadsheet implementation of the decision framework allows one to make a “personalized ” analysis for a particular situation.

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