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Building a Hay Business: Learn by Example from a Minnesota Farm

A Successful Farming profile of a Minnesota family operation shows how harvest timing, repeat buyers, and capacity shaped its hay-business decisions.
From TheFinanceBase Team3 min to read
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A hay business is shaped as much by harvest timing, customer relationships, and available labor as by acres in the field. A 2018 profile of the Michaelson family farm near Crookston, Minnesota, offers a concrete example: it describes a large, family-run alfalfa operation and the decisions behind keeping it running. Its numbers are a case study, not a forecast or a typical-farm benchmark.

How the Michaelson farm was organized

In a March 18, 2018 profile, Successful Farming reported that Josh Michaelson and his wife, Meagan, were 50-50 partners with Josh’s parents, Jerry and Kim, in the family farm near Crookston, Minnesota. Josh’s role grew through hands-on experience with his father; he summed up that learning simply: “I learned from Dad.”

The profile presents the enterprise as a family business, not just a crop operation. Jerry, Kim, Josh, and Meagan discussed decisions together, including equipment purchases or trades and hay pricing. When they disagreed, they worked toward agreement rather than treating decisions as one person’s responsibility.

What the operation produced and how it found buyers

Successful Farming reported that the family harvested alfalfa from about 3,000 acres, with three to four cuttings and a yield of 4.5 tons per acre. The farm sold hay to dairies in North Dakota, South Dakota, Minnesota, and Wisconsin. According to the profile, 95% of sales went to repeat customers.

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Those figures describe this operation as reported in 2018. They do not establish current regional yields, customer demand, prices, or the economics a new entrant should expect. The profile does not provide startup costs, equipment prices, profit margins, or a quantified return from expansion.

Why harvest timing drove the work

For this farm, harvest timing was tied directly to hay quality. Jerry Michaelson told Successful Farming: “Getting alfalfa harvested in a timely fashion is probably the most important factor in getting hay of high quality.” The profile explains that relative feed value declines as alfalfa matures, making the timing of cutting and baling consequential for the product they sold.

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Weather and crop conditions could leave little room to wait. Josh described occasions when “Sometimes, we only have a four-hour window of optimal weather or the right hay conditions for baling.” That four-hour example is his account of the family’s experience, not a universal scheduling rule. The family relied on the partner who was available to make decisions in the field when the other could not be there.

How the family managed fields over time

The profile says the Michaelsons kept fields in continuous hay for about five years, then rotated them into wheat and soybeans before reseeding alfalfa. This sequence is their reported practice; the article does not establish it as a prescribed rotation for every farm or soil.

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What expansion required them to weigh

When the family considered adding acreage, the key question was whether the operation could handle the added work on time—not simply whether more land was available. The profile describes them considering whether their machinery line could manage additional acres and whether family members and current employees could supply enough labor during demanding harvest periods.

  • Machinery capacity: Could the existing equipment handle more acreage without slowing harvest?
  • Labor availability: Could family and employees cover the added work when conditions called for it?
  • Harvest window: Could the operation still cut and bale promptly enough to protect hay quality?
  • Customers: Was there a market for the additional hay? The profile establishes the family’s existing dairy customers and repeat sales, but does not quantify demand for expanded output.
  • Family agreement: Could the partners reach a shared decision about the added responsibility and investment?

The profile does not quantify the cost or expected return of expansion, so it cannot show whether adding acreage would have been profitable. It does show why capacity, labor, timing, customer demand, and agreement belong in the same decision.

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What this example can—and cannot—tell a prospective operator

The Michaelson case illustrates how production and business choices connect: customer relationships matter, but meeting quality expectations depends on coordinated work during narrow harvest windows. It also shows how a family partnership can distribute field decisions and business discussions among several people.

Because the profile was published in 2018 and concerns one farm, it should not be used as a current budget or benchmark. It offers no present-day hay price, startup budget, equipment quote, margin, or general return-on-investment figure. Anyone evaluating a hay enterprise would need local, current costs and market information for their own acreage, crop, machinery, labor, and buyers.

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Read Raylene Nickel’s Successful Farming profile of the Michaelson family for the original case details.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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