This article illustrates a capital budgeting tool that Extension agents and specialists can use to assist agriculture producers when contemplating the construction of a hay storage facility. Capital budgeting is a tool for evaluating the effects of an investment choice on a business. The payback method is a quick and simple capital budgeting procedure. Use of this method requires producers to estimate hay price, facility construction cost, and potential hay loss per year assuming no storage.
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Dillivan, K. (2012). Capital Budgeting for Hay Storage Decisions. The Journal of Extension, 50(6), Article 36. https://tigerprints.clemson.edu/joe/vol50/iss6/36