Pricing Corn Silage In 2004
It is important that you make your own assumptions for your situation and calculate your own costs in order to determine what you feel is an acceptable price. Then negotiate the best you can. Consider Yield & Feed QualityTremendous variation in yield and quality can occur between fields depending on local weather conditions. Many fields will have good yield and quality potential, while others do not. Higher yield reduces harvesting costs per tonne and increases the proportion of grain and therefore energy. Feed Quality Of Immature Corn SilageBuyers need to consider the nutrient value of corn silage, particularly if you suspect it is of poorer quality. Slightly immature, frost damaged corn that has dented can make good silage. However, research shows that very immature corn at the "dough" stage averages 4 percentage points less in In Vitro Dry Matter Digestibility (IVDMD) and about 14 percentage points greater Neutral Detergent Fibre (NDF) than silage at the one-half milk line stage. Corn silage with less grain content generally has reduced energy levels. Quality may be inadequate for high producing dairy cows, and it is sometimes a good idea to harvest the better corn fields for silage. However, quality of immature corn silage will likely be adequate for livestock with low to moderate energy requirements, such as beef cows and stockers. Additional grain can be more easily included in feedlot rations to increase the energy content. Harvesting Frost-Damaged Corn SilageHarvesting frost-damaged immature corn silage at the correct moisture is critical to a good fermentation and forage quality. It is difficult to know when to harvest frost-damaged corn because we cannot use the "kernel milk line" guidelines as an indicator of moisture content as in normal silage. Information on "Frost and Immature Corn Silage" and "Harvesting Corn Silage at the Right Moisture" is available on the OMAFRA Website. Example CalculationsOne method to determine the price of corn silage is to compare it to the value of grain corn as a minimum price. As an example, look at the two fields in Table 1. The first field has a corn crop with decent yield and quality. The second field of immature frost-damaged corn yields only two-thirds of example 1 and is grade #4. These calculated corn silage values are not necessarily the cost of production, or the feed nutrient values, but reflect the market value of the alternate harvesting options. Higher yielding fields have a higher ratio of grain-to-stover than poor fields. The expected grain value should be adjusted for custom combining, drying, and trucking charges to give a value of the crop in the field. The additional soil nutrient value (N-P-K) removed in the stover would cost about $3.25 per tonne of corn silage. If the seller is going to fill the silo for the buyer, custom silo filling charges should also be added. The Crop Budgeting Aids and the Custom Rate Survey are available from OMAFRA. Storage costs are not included. Other ConsiderationsThe local supply and demand of corn silage and alternate forages will influence the price. The availability of harvest equipment, silage storage and the economics of feeding are also considerations. Growers with poor quality corn and without crop insurance have few options. Sellers with Crop Insurance should contact Agricorp (1-888-247-4999) to determine how selling corn as silage will impact a claim. Good yield and quality estimates are important and should take into consideration actual weights and percent moisture. The removal of the stover organic matter could be considered as well. This example is meant to be a general guide for farmers and should be used as a starting point in negotiations between the buyer and seller. Make your own assumptions and do the calculations specific to your situation.
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For more information: Toll Free: 1-877-424-1300 Local: (519) 826-4047 E-mail: ag.info.omafra@ontario.ca
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