Selling hay....how to sleep better
- By: "Farm Tender" News
- Water & Irrigation News
- Nov 19, 2018
- 1370 views
- Share
By Kelsey Miller - Stocka.
Over the past few weeks I have spoken to a number of farmers who are selling hay. In pretty much every conversation at some stage the phase "I just want to sleep better at night" comes up.
I am not surprised, out of all the agricultural products I deal with, hay transactions are the least documented and regulated of the lot. A handshake deal is easy but it also comes with a greater risk of things going wrong.
There is however a few things you can do to tighten things up a bit. In no particular order:
1. Use an online platform (like #farmtender) - It might cost you a bit but in return you end up with a sales contract and someone helping you who really doesn't want the deal to go wrong. They can't guarantee it, but its hard work and bad publicity for their platform if your buyer doesn't pay so its in their interest to make sure your deal works out.
2. Send a single load first - Its not bullet proof but many disputes would be avoided if buyers and sellers could see the product before the major commitment. Once your first load is cleared a dispute on the rest is less likely and worst case if your buyer isnt happy you then have only one load to re-negotiate.
Ad - Feedworks, suppliers of Acid Buf, Hay Guard, Silo Guard and Inland Performer Hay Tarps - Ad
Ad - Feedworks, suppliers of Acid Buf, Hay Guard, Silo Guard and Inland Performer Hay Tarps - Ad
3. Feed test your hay - It might cost you a bit, but more and more buyers expect a feed test and for good reason. It helps to take much of the mystery out of the deal which leads to less disputes and a better chance of a stronger price.
4. Insure your payment - There are several options available to sellers for insuring payments on hay deals. Often the process for applying for cover in itself gives you a clue as to whether your buyer is risky. After all the insurance company wont cover someone who has a track record of not paying.
Finally, trust your instincts, if its too good to be true (it probably is) or you get a bad feeling about someone, find another buyer. It might take a bit of extra effort, but this combined with one or all of the options above will help you to lock in your returns and give you a better nights sleep...
Share Ag News Via