Economics and Budgets
Buying and selling silage
Buyers of silage should be sure to test the forage prior to sale. Price
should be set based on dry matter content and nutritional value. Often
other transaction costs such as delivery, handling, and storage must
also be considered. If the silage is purchased in the field, harvest
costs must be deducted from the "market" price or the agreed upon value
of the forage must be discounted for these costs.
Producers interested in selling silage must first consider whether the
prevailing price for silage will cover their costs of production. Costs
of production include the direct cash expenses such as seed, fertilizer,
fuel, chemicals, and hired labor, as well as indirect costs such as
machinery repairs and ownership costs, land rental, and the value of
unpaid labor. The easiest way to estimate cost of production is to total
all costs for the silage enterprise and divide by the total amount of
silage produced. This results in a total cost per ton of silage.
Machinery costs should be prorated based on hours of use. Thus, if the
planter is also used to plant soybeans, then only a portion of its
annual cost should be allocated to corn silage.
Sellers of corn silage should have a forage test available for
prospective buyers. This documents the nutritional value of the silage,
which often results in a higher price.
There are also alternative marketing strategies for corn silage. The
first is to store the purchased crop on the farm until later in the
spring when forage supplies are tight. The silage should command a
higher price at that time. Sellers should be careful to market their
crop prior to the availability of new crop hay, however, and should also
be sure that any price premium received at that time of year covers
storage and interest costs. Another alternative is to sell silage
earlier in the year with the provision that the crop will be stored on
the farm and delivered as needed to the buyer. Again, the seller should
make sure that hauling and storage costs are included in the price of
the silage. Some producers take this system a step further and deliver
complete rations to buyers, mixed to their specifications. Both types of
transactions
should include a written contract.
Corn silage prices are affected by the availability and price of
alternative feeds. Hay and haycrop silage can be substitutes for corn
silage with an adjustment of the grain portion of the ration.
Consequently, corn silage value depends on hay prices and grain prices.
The market value of the nutritional content of corn silage increases as
hay and corn prices increase, but decreases with soybean meal price
increases. This last phenomenon is because corn silage must be
supplemented with protein feeds, while legume hays and silages need much
less protein supplementation.
Appendix Table 1. Approximate bunker silo capacity
W x H x L (ft) |
Total silo
volume (cu ft) |
Silage capacity1 (cu ft) |
Corn silage2 (tons DM) |
20 x 8 x 40 |
6,400 |
5,760 |
40 |
20 x 8 x 80 |
12,800 |
12,160 |
85 |
20 x 12 x 40 |
9,600 |
8,160 |
57 |
20 x 12 x 80 |
19,200 |
17,760 |
124 |
40 x 12 x 80 |
38,400 |
35,520 |
249 |
40 x 12 x 120 |
57,600 |
54,720 |
384 |
40 x 12 x 160 |
76,800 |
73,920 |
518 |
40 x 16 x 80 |
51,200 |
46,080 |
323 |
40 x 16 x 120 |
76,800 |
71,680 |
502 |
40 x 16 x 160 |
102,400 |
97,200 |
682 |
40 x 20 x 80 |
64,000 |
56,000 |
393 |
40 x 20 x 120 |
96,000 |
88,000 |
617 |
40 x 20 x 160 |
128,000 |
120,000 |
841 |
60 x 16 x 120 |
115,200 |
107,520 |
754 |
60 x 16 x 160 |
153,600 |
145,920 |
1,023 |
60 x 16 x 200 |
192,000 |
184,320 |
1,292 |
60 x 20 x 120 |
144,000 |
132,000 |
925 |
60 x 20 x 160 |
192,000 |
180,000 |
1,262 |
60 x 20 x 200 |
240,000 |
228,000 |
1,598 |
1The
entire volume cannot be filled with silage; the front surface is assumed to
have a 45-degree slope.
2Based
on dry matter densities of 14 lb/cu ft for corn silage, which is
representative of good bunker silo management (i.e., adequate packing).
Source: Ishler et al., Pennsylvania State University, 1993.
Appendix Table 2.
Estimated wet forage capacities of bunker and trench silos containing 35 to
40% dry matter silage.1
|
|
|
|
Silo
capacity (tons)2
Silo length (ft) |
Silo depth
and average silage
density |
Silo
width (ft) |
Silage/
4 inches of
removal (tons) |
Per
linear
foot (tons) |
60 |
80 |
100 |
8 ft
32 lb/cu ft (density ranges from 30 to 36 lb/cu
ft) |
20 |
0.85 |
2.56
|
125
|
173
|
221
|
24
|
1.02 |
3.07 | 150
| 207 |
265 |
30 |
1.28 |
3.84 | 187 |
259 |
331 |
12 ft
36 lb/cu ft (density ranges from 34 to 38 lb/cu
ft) |
24 |
1.73
|
5.18
|
249
|
353
|
456
|
36 |
2.59
|
7.78
|
373
|
529
|
684
|
48 |
3.46
|
10.37
|
498
|
705
|
912
|
60 |
4.32
|
12.96
|
622
|
881
|
1,140
|
16 ft
40 lb cu ft (density ranges 37 to 42 lb/cu ft) |
36 |
3.84
|
11.52
|
507
|
737
|
968 |
48 |
5.12 |
15.36
|
676
|
983
|
1,290
|
60 |
6.40
|
19.20
|
845
|
1,229
|
1,163
|
1Capacities
are dependent on average densities of silage.
Silage density increases with increasing moisture content, shorter
cut length, packed silage depth, and degree of packing.
2Capacity
is calculated on the assumption that the far end at the silo is vertical and
the front has a 2 to 1 slope, i.e., twice as long as the height of silage in
the silo.
Source: Silage Manual, Alberta and Saskatchewan Agriculture.
Appendix Table 3. Approximate tons of dry matter in
next four feet of silage in top-unloading upright silos during feedout.
|
------------------------------Silage
diameter (ft)----------------------- |
Depth of silage
already unloaded |
12 |
14 |
16 |
18 |
20 |
24 |
28 |
30 |
0 |
2 |
2 |
3 |
4 |
5 |
7 |
9 |
10 |
4 |
2 |
3 |
4 |
5 |
6 |
8 |
11 |
13 |
8 |
2 |
3 |
4 |
5 |
7 |
10 |
13 |
15 |
12 |
3 |
4 |
5 |
6 |
8 |
11 |
15 |
17 |
16 |
3 |
4 |
5 |
7 |
9 |
12 |
16 |
18 |
20 |
3 |
5 |
6 |
7 |
10 |
14 |
18 |
22 |
24 |
4 |
5 |
7 |
9 |
11 |
15 |
21 |
23 |
28 |
4 |
5 |
7 |
9 |
11 |
16 |
22 |
26 |
32 |
5 |
6 |
8 |
10 |
12 |
17 |
23 |
27 |
36 |
5 |
6 |
8 |
10 |
12 |
18 |
23 |
27 |
40 |
|
7 |
8 |
10 |
13 |
19 |
27 |
30 |
44 |
|
7 |
8 |
11 |
13 |
20 |
27 |
31 |
48 |
|
7 |
9 |
12 |
13 |
20 |
27 |
31 |
52 |
|
7 |
9 |
12 |
14 |
21 |
27 |
33 |
56 |
|
7 |
10 |
12 |
15 |
21 |
28 |
33 |
60 |
|
7 |
|
13 |
15 |
21 |
31 |
34 |
64 |
|
|
|
13 |
16 |
21 |
30 |
34 |
68 |
|
|
|
|
|
21 |
30 |
33 |
72 |
|
|
|
|
|
21 |
27 |
31 |
76 |
|
|
|
|
|
21 |
28 |
31 |
Appendix Table 4. Corn silage energy estimates from fiber
anlysis.
Prediction equations |
Midwest: %TDN =
87.84 - (0.70 x ADF) |
New Hampshire: NEL =
0.996 - (0.0126 x ADF) |
New York: %TDN =
31.4 + (53.1 x NEL)
NEL (mcal/lb) = 0.94 - (0.008 x ADF) |
Pennsylvania:
%TDN = 31.4 + (53.1 x NEL)
NEL (mcal/lb) = 1.044 - (0.0124 x ADF) |
Spartan Balancer:
NEL = 1.02 - (0.0128 x ADF) |
Further Reading
Wisconsin
Note: Web resources for Wisconsin are maintained by
Mike Rankin and
Team
Forage. Please see
http://www.uwex.edu/ces/crops/uwforage/Silage.htm
for an up-to-date listing.
Corn Silage Pricing Decision Aid
This spreadsheet developed by Ryan Sterry, Polk Co. Agriculture Agent; Lee Milligan,
St. Croix Co. Agriculture Agent; and Joe Lauer, UW-Extension Corn Agronomist, helps
to determine a price for standing and harvested corn silage.
Corn
silage enterprise dollars
From Greg Hadley, UW Extension Farm Financial Management Specialist. This
spreadsheet is designed to allow the user to compare last year's enterprise
budget (Worksheet 3) and cost of production (Worksheet 4) to the typical WI and
MN farm that contributes their records to FinBin (http://www.finbin.umn.edu/).
Corn Silage Adjusted Dry Matter Pricing Program
From Greg Hadley, UW Extension Farm Financial Management Specialist. This
spreadsheet helps to determine the moistue-adjusted price for corn silage based
on a set price at a given moisture concentration.
Dairy Feed:
A New Cash Crop
A presentation given by Mike Rankin, Fond du Lac Co. UW-Extension Crops and Soils
Agent, at the 2006 Fertilizer, Ag Lime, and Pest Management Conference.
Economics
of Alfalfa and Corn Silage Rotations
This paper, written by Extension Educator Ken Barnett, looks at the economics of
various rotation options using alfalfa and corn silage.
Buying and Selling
Corn Silage: What's a fair price?
This paper, written by Greg Blonde, Waupaca Co. Agricultural Agent, evaluates several
methods to value corn silage.
Pricing Drought Stressed
Corn Silage
by Dr. Joe Lauer, UW Extension Corn Agronomist et al.
Negotiating
the Value of Immature Corn Silage
by Dr. Joe Lauer, Wisconsin Crop Manager Article, September, 2004
Calculating
Grain and Silage Yields for Loan Deficiency Payments
by Dr. Joe Lauer, Wisconsin Crop Manager Article, October, 1999
Calculating the value of corn
silage
by Dr. Joe Lauer, Wisconsin Crop Manager Article, September, 1994
Contracting Corn Silage Acres
Mike Rankin, Crops and Soils Agent, UW-Extension-Fond du Lac County
Includes a table for pricing corn silage at various moisture levels.
Choosing Between Alfalfa and Corn
Silage ...or when do you trade Medicago for Maize?
Mike Rankin, Crops and Soils Agent, UW-Extension-Fond du Lac County
Estimate the Value of Standing
Corn for Corn Silage
Gary Frank, Farm Management Specialist, UW-Madison, Center for Dairy Profitability
Equipment Sharing and
Other Joint Ventures
Gary Frank, Farm Management Specialist, UW-Madison, Center for Dairy Profitability
Corn Silage vs. Alfalfa
Spreadsheet
This spreadsheet, developed by Monroe County Agriculture Agent, Jim Leverich, offers
dairymen the opportunity to compare expense and income for producing and feeding
different amounts of corn silage and alfalfa.