PRICING 1999
DROUGHT-STRICKEN
FORAGES
Roland P. Freund
Penn State
Cooperative Extension
This year south central Pennsyl
vania is hard hit with early and un
relenting drought conditions.
Scattered thunderstorms have pro
vided temporary relief for some
fields, but in late July it now ap
pears that few grain crops will sur
vive to give even a fraction of nor
mal yields.
Since world slocks and project
ed supplies of grain are still fairly
high, prices for these locally
scarce commodities are only at
modest levels. Meanwhile com
silage yield and quality are in
doubt, so dairymen will be search
ing far and wide to round up
enough crop to fill their normal
needs. That's the bad news.
If there is any good news in this
situation, it is that these relatively
moderate feed prices should cn
able the prudent dairy and live
stock folks to lock in their feed
needs for the coming year at a rea
sonable price. Since some com
fields will not even set grain, the
growers of those crops can make a
deal with their silage-seeking
neighbors to sell the stalks for sil
age. The next question is: “What
is a fair price for this forage?" As
usual, there is more than one per
spective on this question.
Grower's Perspective
A standing field of com is nor
mally worth what the grower can
get for the grain at harvest time,
minus die harvesting cost, minus
drying, hauling, and marketing
charges. To calculate this value re
quires some yield checking and
some price forecasting. Based on
local mills* present harvest time
contract, at this writing this price
is quoted at $2.30 a bushel.
If we are looking at a field with
a grain yield of 40 bushels and an
8-ton silage harvest at 35 percent
dry matter, the grower could ex-
pect to net $56 from shelled com.
But if stover is removed, he
should get an estimated $l4 to
compensate for the fertility and
conservation value removed with
silage. This makes his Geld worth
$7O per acre or $B.BO per standing
ton. Unless the grower can get
more for silage he is theoretically
just as well-off if be lets it dry
down for shelling and sale on har
vest contract.
Dairyman's Perspective
In theory, if the dairyman can’t
get com silage, he can substitute 4
hundredweight of ear com plus 4
hundredweight of grass hay for
each ton of silage. This makes that
acre of com silage wrath $245 to
the daily if it is in the feed-bunk.
But it will cost $5O to harvest and
haul, $lO to ensile, 10 percent loss
for ensiling and storage, and a 6
percent discount for lower grain to
stem ratio. This reduces his silage
value to $156 for the acre. That’s
the maximum he should consider
offering.
If (he silage is 40 percent dry
matter, a ton is worth $22.25; at 35
percent, $l9 JO; at 30 percent,
$16.70; and 25 percent, $14.00. It
is very critical to know the dry
matter content of what you buy.
Many people have paid for very
expensive water!
A forage test will reveal the
analysis of the forage. This can be
used as a guide, but buyers should
be cautious, as draughted forage
does not always give the animal
Lancaster Fanning, Saturday, August 21, 1999-A3l
performance which would be ex
pected from the laboratory results.
Room To Negotiate
We see from this example that
both parties can be mote profit
able if they strike a deal some
where between $lOO and $l4O per
acre fra this draughted crop.
Supply and demand will play a
big role in the price, but daily
fanners should not allow them
selves to be gouged into paying
the astronomical prices that were
reported several years ago, espe
cially for forage of dubious
quality.
Soybean Silage
Selling standing beans fra sil
age could be approached with
about the same procedure. As with
corn, a critical factor with
draughted beans will be to know
the nutritive value of the crop.
Normally a lest could expect to
show: 18 percent crude protein,
0.55 NEL; 55 NDF. The dry, mat-
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Coupon not valid with any other discount
ter here is closely comparable
with alfalfa; and should be worth
approximately 80 percent to 90
percent of the dry matter price of
equivalent alfalfa at the farm gate.
However, as with silage, the
harvesting, hauling, and ensiling
costs and losses can be consider
able. These must be adjusted for
before a price is struck.
Need Help?
These calculations arc time
consuming. There is a simple
template available to assist with
com silage pricing. It can be sup
plied to you but you will need to
specify the format and the version
of the spreadsheet in use on your
computer.
Related drought information
is available at http://www.cas.
edu/docs/cashome/drought/ or
from your local county exten
sion office.
LANCASTER
FARMING
FOR COMPLETE
AND
UP-TO-DATE
MARKET
REPORTS
20-25 ton trailer loads
$9/per ton depending
iolland, PA
(717) 354-4996 (717) 445-7561
Hi Mag (Ag Lime Spreading) Hi-Cal
Also in bags, pulverized, pelletized
and feed grade
HAD
$l.OO OFF