I have a question along with my friend an his dad. We combine 100acres of corn an we would like to know what it would pay to chop all of that an sell the chopped corn instead of shelled corn? I mean we wouldnt sell it all we would keep some to feed the cattle but is this worth it? Ive seen a few farmers over the internet do this an just wonder what the benifits are.
There are a lot of issues with producing corn silage.
1: You have to be near your buyer. Usually harvesters dont want to haul a load more than 10 miles one way or it becomes inefficient as the chopper has to wait for the trucks to return. An alternative option is for you to foot all of the costs, store it yourself and then sell it to a farmer a little further away. But after all of these costs it will be a big headache especially since corn silage is not like grain. Once you open up that plastic its gotta go which is why usually only one dairy farmer sells to another dairy farmer out of the trench (pit,clamp,bunker,bag,silo etc).
2. Figuring out the price to be paid can be a headache. With corn silage it can be a guessing game. However most custom harvesters have portable scales which eliminates part of the guessing game. There are many ways to price corn silage. One way is simply by the ton adjusted by the dry matter (so that the buyer doesnt pay for excess water). Another way is to just use the current grain price. Say if corn is at $3.80, take that times 7 (6-8 bu/ton) then add $6 per ton for the extra fiber from the rest of the plant. This would equal out $32.6/ton. However you more than likely wont get that unless you are harvesting it and throwing the tires on the tarp when your finished. Since the farmer has to foot the bill for the harvest, the price you will get paid will be lower.
Lets say in the end all said and done you end up getting $29/ton. (I should add that I dont know really if this is truely a real world price. Ive never had to price corn silage before, Im just using the formulas I learned in my Forage Class)
Now lets say you average 25/tons an acre which is pretty good. Im not sure if this is common for your area especially if its being grown for grain. On our farm we averaged 29 tons per acre.
Lets also say your corn yeild is 200 bu/ac (again dont know what your crops produce)
And well say the grain price is $3.80 to keep the problem equal.
If you opt to go the corn silage route you will end up making $72,500
Heres the equation
25x100($3.80 x 7 + $6 - $3.6)= $72,500
x=ya(p7 + 6 -c)
x= Net Gain
y= Yeild/Acre in tons
p= Current Corn Price
c= Negotiated harvest costs to you.
Now lets say you got 200bu/ac. and the price is still $3.80
200x100x3.80= $76,000
So you make $3,500 more by harvesting grain, assuming all things equal. However with the corn silage you have no machine wear or other costs.
There is a market for corn silage. Its a great feed. Its just that its no economical to transport it very far.