Investing in storage pays off for Goulburn hay producer

With two sheds, one big enough for about 20,000 small square bales and another that fits 900 round bales, Mr McLennan said the investment was well worth it.

"Without the storage we certainly wouldn't be able to do it - I wouldn't put all the work into it without it," he said.

Along with a sheep and cattle, and cropping operation, Mr McLennan's family has been producing hay for four generations and built their first hay shed on Connen Hill 43 years ago and erected the second about four years ago, keeping up their reputation for selling high quality hay.

"If I've got a round bale of lucerne or round bale of oaten hay in the shed people who have horses are interested in it as well as people with cattle or sheep," he said.

"As soon you put it outside people with horses generally don't want it."

Mr McLennan said the value would be reduced, particularly if there was rain on it.

"It limits the price you can sell it for and limits the storage time," he said.

"It's the hard part about making hay in Goulburn - we can grow it but it's physically making it is incredibly hard."

Mr McLennan said the added value on the bales quickly repaid the cost.

"If you get an extra $50 per round, in one year you've paid for the shed," he said.

However, Mr McLennan said this season had been a nightmare and he had mostly made lucerne silage, with only about 2000 square small bales and 800 round bales produced.

"Everything was going along alright and we were pretty optimistic," he said.

"There was this forecast of dry weather and we had an irrigation dam full of water and generally speaking that's when we do the best."

After making good quality hay at the start of the season Mr McLennan said they then have had 460mm of rain since November 25, hampering production.

"We have still kept cutting," he said.

"We have still made the same amount of product but instead of being the high value small square bales they're in individually wrapped silage. We'll still be able to sell them and we'll keep some for our stock."

Mr McLennan said they made decisions based on the long range forecast and would have changed the way they irrigated if they knew what was coming.

He said there was still constant demand for bales.

"The small squares I did make I just made a few phone calls and within two hours or so I'd sold about 1500," he said.