Photo credit: North Dakota State University.
Hot, dry weather in North Dakota is forcing some producers to decide whether to harvest corn for grain or chop it for silage. With drought conditions raising concerns about potential feed shortages, producers also may need to determine a fair price for standing corn sold for silage.
Corn for silage sometimes is sold standing in the field, and determining its value requires consideration of yield, dry matter content, the value of substitute feed crops and harvesting and hauling costs.
North Dakota State University Extension has revised its publication on determining the value of a standing corn crop for silage with updated values and procedures. The publication is available at https://www.ndsu.edu/agricultu....
NDSU Extension also has updated a silage decision tool, available as a downloadable Excel spreadsheet, that allows producers to enter figures from their own operations. The tool includes adjustments for corn silage prices and yield calculations and is available at https://www.ndsu.edu/agricultu....
Estimating Corn Silage Yield
To estimate the wet yield of standing corn in 22-inch rows, producers can select a representative row, measure 23.8 feet, cut the corn at normal chopping height and weigh the harvested material. Multiplying the weight by 1,000 estimates total weight per acre, which can then be divided by 2,000 to convert the figure to tons per acre.
For 36-inch rows, 14.5 feet of row should be measured, while 17.4 feet should be measured for 30-inch rows.
Determining Silage Value
Corn silage is primarily an energy feed, so its dry-matter value can be compared with the local value of shelled corn and grass hay. Good-quality mature corn silage typically contains about 50% corn grain by dry-matter weight.
For example, if shelled corn containing 13% moisture is valued at $4.25 per bushel and grass hay containing 10% moisture is valued at $90 per ton, their respective values can be converted to a value per pound of dry matter. Corn would be valued at 8.72 cents per pound of dry matter, while hay would be valued at 5 cents per pound.
Silage containing 35% dry matter has 700 pounds of dry matter per ton. For mature, high-yielding grain corn containing 50% grain by dry-matter weight, the dry matter would be divided between corn and hay equivalents. Under those price assumptions, the resulting value would be $48.03 per ton of silage.
Accounting for Immature or Drought-Stressed Corn
Immature or drought-impacted corn contains less grain relative to stalk and leaf material. Corn in the hard dough stage may contain about 25% grain by dry-matter weight. Using the same feed prices and 35% dry matter, the estimated value would be $41.51 per ton.
Very immature corn with no grain content would be valued based on its hay equivalent. Under the same assumptions, the value would be $35 per ton for silage containing 35% dry matter.
Accounting for Harvest Costs
The value of standing corn also must account for the cost of chopping and hauling. A custom rate of $12 per ton is used in the examples, although actual rates may vary among custom harvesters.
For mature corn containing 50% grain by dry-matter weight, a 5-ton-per-acre crop would have an estimated silage value of $240.15 per acre. After a $60-per-acre chopping and hauling cost, the standing crop would have an estimated value of $180.15 per acre. At 10 tons per acre, the standing value would be $360.30, while 15 tons would have a standing value of $570.45 and 20 tons would have a value of $720.60 per acre.
For immature corn containing 25% grain by dry-matter weight, the corresponding standing values would be $147.55 per acre at 5 tons, $295.10 at 10 tons, $472.65 at 15 tons and $590.20 at 20 tons.
Corn with no grain content would have estimated standing values of $115 per acre at 5 tons, $230 at 10 tons, $375 at 15 tons and $460 at 20 tons.
The resulting standing-crop value represents the maximum amount a buyer could afford to pay based on the assumptions. The buyer should reduce the calculated value to account for estimated spoilage, with the final price negotiated between the buyer and seller.
Crop Insurance Considerations
Producers with all-risk crop insurance should contact their insurance agent before chopping or selling standing corn to determine how the decision could affect yield history and potential insurance payments.
Producers with a potential insurance claim may be required to leave specified rows unharvested throughout the field for a final appraisal.
Selling unharvested corn also can result in a loss of beneficial interest before harvest, which could make the producer ineligible for a potential loan deficiency payment.
Sources:
North Dakota State University, " NDSU Extension develops tool to aid corn silage decisions"
North Dakota State University, "What is the Value of a Standing Corn Crop for Silage?"