Can hay compete in Corn/soy country with $3.00 corn?

Hi everyone,

 

First time poster.  This may be long, so, sorry in advance.

 

Went home for Christmas, (we're a few weeks early in celebrating, saves everyone airfare).  Last weekend, I went to a land auction with my dad, (prices finally coming down), and then helped him move some small squares of grass hay bought from a friend for the stock cows.

 

So, anyhow.

 

guy selling says he's getting $2.90 at the sale barn, and alfalfa is bringing $4.00.

 

We've never baled more than 1,000 bales a year of square bales, grass and alfalfa.  We've never had a lot of cattle around.  It was always thought of as a second rate crop, we'd find an odd-shaped corner of a field to plant to hay, and bale grass off of land that is too wet to row crop.

 

I'm thinking, if we can get 4 tons/acre/year, and $4/ #50 bale, that's $640/acre in revenue.  This is slightly better than $3 corn at 200 bu. / acre.  Inputs have to be less.  Less fertilizer? alfalfa seed is expensive, but, not as bad as corn seed.  What am I missing?  Have Just discovered a niche market for a young-ish guy to start farming?

 

If its part of your complete rotation, you could monetize the gains from breaking up your corn/soy rotation.  Does it make sense to add some alfalfa to a grain farmer's rotation?

 

What are some honest assessments of input costs?  Anyone in Southwest Minnesota, Northwest Iowa have a handle on realistic yield estimates?

 

We have some old haying equipment, suppose I'd get nicer stuff if it actually works.  

 

I suppose it's a temporary thing, while everyone is still planting corn ditch to ditch, and hoping for the market to improve.

 

Maybe slightly better than corn, resulting in not losing money as fast for a lot more work?

Can hay compete in Corn/soy country with $3.00 corn?