Farmers Direct

Cost of Business in Baling and Pressing Reach All-Time Highs

The last 4 years have been a rough ride for baling and pressing companies with required costs to conduct business. This industry is not alone in dealing with costs as most all industries with a few notable exceptions have shared in this struggle. The charts above demonstrate on a macro level the increase of costs. On a more detailed level, based on our actual invoices and expenses, we have seen the following very impactful costs of doing business:

  1. A new baler cost has increased roughly 50% in the last 4 years
  2. Twine has increased roughly 56% in the last 6 years
  3. Strap for pressed bales has increased roughly 56% in the last 6 years
  4. A new press cost has increased roughly 26% in the last 7 years
  5. Labor has increased by 40% in the last 6 years, not including what potential increase the new overtime laws will have going forward.

These are just a handful of the costs that have all increased on a trend of 30%-60%. However, the rate paid for custom baling has only increased by 25% from 2018 to the projected rate for 2024. The baling rate has made it virtually impossible for a small operation or new startup to survive over the past 4 years. It also makes the long term viability of a baling company questionable if the economics remain on the same path.