1 / 13

Pricing Corn Silage in 2007

Pricing Corn Silage in 2007. Bill Weiss/Dianne Shoemaker Dept of Animal Sciences OARDC/OSU Extension Weiss.6@osu.edu. Corn Grower’s Point of View. Sell grain or sell corn plants. Which will maximize return per acre?. Gross Return for Grain: (bu./acre x $/bu.) minus harvest cost vs.

howell
Download Presentation

Pricing Corn Silage in 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Pricing Corn Silage in 2007 Bill Weiss/Dianne Shoemaker Dept of Animal Sciences OARDC/OSU Extension Weiss.6@osu.edu

  2. Corn Grower’s Point of View Sell grain or sell corn plants. Which will maximize return per acre? Gross Return for Grain: (bu./acre x $/bu.) minus harvest cost vs. Gross Return for Corn Plants (i.e. silage): (tons/acre x $/ton)

  3. Corn Grower’s Point of View Gross Return for Grain (Example): Estimated yield = 100 bu./acre Price at harvest = $3.60/bu. Harvesting costs * ~$39/acre Gross=(100 bu.x $3.60) – $39=$321/acre * your cost should include combining, transport, drying, and any other marketing costs

  4. Estimating Silage Yield of Corn Plants Using Plant Weight Rule of thumb*: Corn yields ~0.9 tons of 35% DM silage per foot of plant height (excluding tassel) *Only use this method for corn with few ears (severe drought stress)

  5. Estimating Silage Yield of Corn Plants 1. Hand cut plants and weigh For 30” rows, 8 ft, 8” = 1/2000 of an acre. Cut plants at chopper height over an 8’8” length of row, weigh plants. Weight in lbs = tons/acre (35% DM) 2. Repeat step one 6 to 8 times throughout field and calculate average yield for the field.

  6. Estimating Yield of Silage Based on Estimated Corn Grain Yield Severe drought stress: 1 ton (35% DM) silage/5.5 bu. Estimated grain yield = 70 bu. Then estimated silage yield = 70 bu. ÷ 5.5 = 12.7 tons (35% DM)

  7. Estimating Yield of Silage Based on Estimated Corn Grain Yield Moderate drought stress: 1 ton (35% DM) corn silage/6.5 bu. Estimated grain yield = 100 bu./acre Estimated silage yield = 100 bu. ÷ 6.5 = 15.4 tons (35% DM)

  8. Corn Grower’s Point of View ‘Floor price’ for Selling Plants (Example): Estimated grain yield = 100 bu./acre Estimated silage yield= 100/6.5 = 15.4 tons Grain return = $321/acre Silage equivalent: $321/15.4t = ~$21/ton I can sell corn plants at $21/ton and make same $ as selling grain

  9. Dairy Farmer’s Point of View Feed corn silage or other feeds. Which will maximize return per cow? What is the cost of nutrients from corn silage compared with nutrients from other feeds?

  10. Dairy Farmer’s Point of View • Average nutrient composition of drought-stressed corn silage • 2007 average costs of nutrients Corn silage (35% DM) when fed to a cow is worth a maximum of ~$54/ton (+ $7/ton) (ceiling price)

  11. Dairy Farmer’s Point of View Max. value of corn silage when fed $54/t Cost of storage, $ - 4/t Cost of shrink, $ - 5/t Max value of chopped corn plants $45/t Cost of chop, haul, fill, $ -6/t Max value of standing corn plants $39/t or Ceiling Price At 35% DM

  12. Risk factors Plants in the field have to be harvested and ensiled - Correct moisture? (35% DM) • Good fermentation? • Nitrates in drought-stressed corn? • Actual nutrient content? The party that assumes the risk (the buyer of plants in the field) should never pay $39/ton (ceiling price)

  13. If grower sells for more than ~$21/ton he makes more money If dairy farmer buys for less than ~$39/ton he makes more money Negotiation range: $21 to $39/ton of standing corn Average: $30/ton

More Related