What does it cost to start up a pelleting business?
Quite a lot. A gross estimate for the purchase and set up of all the equipment necessary to start up a pelleting business might cost around $150,000 for used equipment. New equipment set up to work with baled hay might be around $400,000. Production costs for pelleting could be as low as $25/ton of hay. It may be possible to lease pelleting equipment with the option to buy. Cooperatively-owned equipment among neighbors is an option, this is done in Europe.
