Pricing Corn Silage in 2005

A common question in September is “what is corn silage worth?”, and as always there is no single correct answer. Rainfall has been extremely variable across Ontario this year, and as a result the corn crop, corn silage yields are quite variable.

Local supply and demand ultimately determines the price. With currently low grain corn prices, corn silage looks fairly attractive as an alternate forage. 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.

Corn Silage A Good Late-Season Forage Option

Approximately 85% of the corn acres in Ontario are planted with the intention of combining them as grain. Much of these corn acres are usually readily available for harvest as silage. This gives the corn growing parts of the province a good late-season option when forage inventories get tight. Dairy producers can often increase the percentage of corn silage in the ration if necessary. This year, hay inventories are reduced in much of the cow-calf areas of the province, including the corn growing areas of Bruce, Grey, Simcoe, Victoria, Peterborough, Quinte, and Renfrew. Many farmers are looking for more forage to meet their needs. Silage piles and silage bags provide flexible storage options, but some planning is required.

Example Calculations

One method to determine the price of corn silage is to compare it to the value of grain corn to determine a minimum price. As a seller, you would not want to sell it as corn silage for less than you could net selling it as grain. Buyers feeding corn silage to livestock might be prepared to pay more, depending on what alternate feedstuffs are available. However if there is lots of corn crop available, at currently low grain corn prices, corn silage looks very competitive as a forage feedstuff.

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.

As an example, look at the two fields in Table 1. The first field has a corn crop with good yield, while the second field yields about two-thirds of that. Higher yielding corn fields contain a higher proportion of grain relative to stover, and are usually greater in digestible energy.

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 (P & K) removed in the stover is 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 on the OMAFRA website. Storage costs are not included.

Salvaging A Poor Corn Crop

Farmers attempting to salvage corn fields damaged by lack of rain by harvesting them as silage should be aware of some of the harvesting and nutrition implications. Information on harvest and storage of corn silage, including “Harvesting Corn Silage At The Right Moisture” and “Drought Damaged Corn Silage” is available on the OMAFRA Crop Website.

Corn without ears has no value as a grain crop. The absolute minimum price in this case should be the P&K value of the stover. The price of alternate feeds such as standing hay is a consideration in areas that are very short of forage inventory. Grassy standing hay at 2^¢/lb of dry hay equivalent could be roughly equivalent to earless corn silage at about $13.89 / tonne in the field.

Other Considerations

The local supply and demand of corn silage and alternate forages will influence the price. The availability of silage storage and the economics of feeding are considerations. 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.

Related Links

• Crop Budgeting Aids
• Guide To Custom Farmwork and Short-Term Equipment Rental
• Drought Damaged Corn Silage

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