By Karen Johnson
It is the time of year when farmers begin harvesting their corn silage. Depending on your own situation, you may be trying to determine what the ideal price for corn silage should be. There are a number of factors to consider when trying to determine that price. Factors include knowledge of the expenses such as the cost of fertilizer and field operations, the moisture and corn content of the silage and markets (grains, straw, mild, and silage). This can make obtaining a fair price hard to come by if you are not aware of the resources around you.
Farmers have priced silage using the rule of thumb that silage value per ton is 8 to 10 times the price of a bushel for corn. The factor of 8 has typically been used when pricing standing corn silage; the factor of 10 is used when corn silage is already in storage. However, this rule of thumb may need adjusting as the current corn and input prices have changed. It’s more likely that the corn silage standing in the field is worth 6 to 8 times the price of corn grain.
Environment may also play a role in the amount of grain in a silage sample. Testing samples for moisture and feed quality is one way to help decide what the silage is worth and can help eliminate some of the questions around quality. Also, remember that storage and labor costs are tied up in the price of grain. If you are not the one doing the work, make sure to properly adjust the price based on the harvest costs that would have occurred in harvesting the grain.