Figuring out how much to charge for standing corn silage might seem puzzling. Unlike some other crops with clear prices, corn silage's worth isn't as straightforward. People often decide its value based on how it compares to things like corn grain and hay.
Pricing this kind of corn takes a few things into consideration. Sellers need to think about how much the grain is worth, the cost of fertilizer, and the money saved from not harvesting the traditional way. On the field, corn silage can be thought of as being worth eight to ten times the cost of regular corn.
Moisture is another thing to think about. To get this right, you take away the moisture percentage from 100. Then, divide by 35 and times it by the value for 65% moisture.
For example, in Michigan, if a bushel of corn has 15% moisture, it could be the same as around 0.150 tons of corn silage with 65% moisture. If you expect to get 170 bushels per acre, that's like 20 tons of silage. You can compare your yield to nearby fields or use special strips to check.
When you compare harvesting corn for silage to collecting it as grain, you notice a big difference. When it's for silage, you take the whole plant, including things that could help future crops.
You also need to look at how healthy the corn is. Usually, when corn grows normally, it has the same dry matter as the grain. But if it's not growing as well, it might have less dry matter (usually 25% to 40% instead of the usual 35%).
For people buying corn silage, they need to know how much it's worth compared to the feed it replaces. For example, if you would have gotten 134 bushels per acre and corn costs $3.25 per bushel, the grain part of the silage is worth $435.50 per acre. That's 50% of the total value.
The other 50% is like stover. You can find its value using the price of hay. If hay costs $100 per ton, then 20 tons of silage x 50% is 10 tons of stover. Using the dry matter of silage and hay, you can find it's worth around $389.
Put the grain value and the stover value together, and you get $435.50 (grain) + $389 (stover) = $824.50 per acre. That's about $41.23 per ton if you get 20 tons per acre.
When the buyer also has to do the silage harvesting, they should think about how much that costs (like $10 per ton). Remember, silage harvesting is different from grain harvesting.
For sellers, selling for silage means you're missing out on some things. You might have sold the grain or used the stover for other things. These lost chances and possible fertilizer costs should be part of the price.
Fine-tuning the price includes thinking about many things, like how valuable manure is, or if the buyer could help with other crops. It's a bit complex, but finding the right price for standing corn silage is important for everyone involved.
Photo Credit: gettyimages-chrisboswell
Categories: Michigan, Crops, Corn