Kussmaul Sustain E Brand vs. Competitors

Kussmaul Sustain E Brand vs. Competitors

Multi State, Multi-Location

Kussmaul's Sustain E Brand Alfalfa

Cost at early order/early pay.......................................................$4.05 per lb.

Average 2007 yield at 18 different yield trials..............................5.75 tons/acre

Seeding Rate...............................................................................20 lbs/acre

Seeding Cost = 20 lbs/ton x 5.75 tons...................................11,500 lbs of hay

11,500 ÷ 60 lb. bales = 192 bales

Cost of the hay in the first year after seeding is $81.00 ÷ 192.....$0.42 per bale

In Comparison to Vernal

Vernal's yield in same trials.....................................................4.46 tons/acre

2,000 x 4.46 = 8,920 ÷ 60...............................................................149 bales

Vernal priced at $1.85/lb. seeded at 20 lbs/acre.......................$37.00 per acre

$37.00 ÷ 149 = .024 bale

But you are short 43 bales of hay. Let's say hay is worth $185.00/ton

Sustain E = (180.00 x 5.75 tons)........................................$1,035.00 per acre

Vernal = (180.00 x 4.46 tons)................................................$802.80 per acre

Difference........................................$232.20 per acre for $44.00 worth of seed!

So, with Vernal you're already short $232.20 per acre.

Now, you need to buy 43 bales of hay per acre to get even.

43 x 60 = 2,580 lbs ÷ 2,000.............................................................1.29 tons

1.29 tons x $189.00/ton = now you need to spend another $232.20

to buy the hay that you were short!