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Economics of Forage Harvest and Storage Systems

Economics of Forage Harvest and Storage Systems. Forage Harvesters Silos. Is it Time to Replace my Forage Harvester?. Is labor availability an issue? Is timeliness a problem with your current equipment? Are your repair costs high? How many acres of forages do you harvest?.

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Economics of Forage Harvest and Storage Systems

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  1. Economics of Forage Harvest and Storage Systems Forage Harvesters Silos

  2. Is it Time to Replace my Forage Harvester? • Is labor availability an issue? • Is timeliness a problem with your current equipment? • Are your repair costs high? • How many acres of forages do you harvest?

  3. Solutions to Labor Scarcity and Poor Harvest Timeliness • Purchase higher capacity forage harvester • Change crop rotation • Custom hire

  4. Are your repair costs high? • Current forage harvesters are designed to be more reliable and have fewer repairs over their lifetimes than older models • Newer models of pull-type forage harvesters have an expected life of 2,500 hours compared to 2,000 for older models • Newer models of SP forage harvesters have an expected life of 4,000 hours compared to 2,500 for older models

  5. Forage Harvester Comparisons: • 2-row towed ($25,900) • 2-row self-propelled ($159,900) • 3-row self-propelled ($165,600) • 6-row self-propelled ($236,600) Prices from Univ. of MN, “Minnesota Farm Machinery Economic Cost Estimates for 2001”

  6. Variable costs are those which occur from operating the machinery repairs labor fuel lubrication Fixed costs are those which result from owning the machinery depreciation interest insurance housing Managing Machinery Costs

  7. Field Capacity (acres/hour)

  8. Silage Storage Alternatives • Tower silos • Bunker silos • Silage bags

  9. Tower Silo • Silage can be 50 to 65% moisture • Packing of silage due to weight from top • Various sizes available (50-4000 tons) • Minimal exposure to weather

  10. Bunker Silo • Sizing is very flexible • Silage can be of higher moisture than tower • Requires more labor to pack down • Requires plastic and tires to cover • Increased exposure to weather

  11. Silage Bags • Normal size: 150-200 ft. long by 9 ft. diameter • Minimal amount of labor required • May wear out tractor more quickly • Spoilage due to weather or rodents • Easy to regulate silage removal • Takes up space

  12. Summary of Silo Cost Factors • Structure • Equipment (tractor and special equipment) • Labor (How much time and when does action occur) • Fuel and lubricants • Plastic • Dry Matter Loss (direct loss of silage value)

  13. Annual cost of storage of 384 tons DM Source: “Choosing Forage Storage Facilities”, B.J. Holmes, Univ. of Wisconsin

  14. Annual cost of storage of 3,072 tons DM Source: “Choosing Forage Storage Facilities”, B.J. Holmes, Univ. of Wisconsin

  15. Silage Cost Management Resources • www.uwex.edu/ces/crops/uwforage/storage • Includes a spreadsheet and documentation to analyze costs of different storage choices • www.silo.org/costcomparison.xls • Spreadsheet tool that allows for comparison of costs of tower, bunker, and bags

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