By Dwight Roseler and Jason Hartschuh
Corn silage is the most economical forage ingredient in dairy cattle diets. Corn silage typically constitutes from 35% to 60% of the total ration and is 25% to 40% of the total lactating cow feed cost.
There are three ways to price corn silage: 1) Actual production expense (fixed land cost and variable inputs), 2) alternative ingredient market value or 3) an agreed-upon cost from a neighbor for standing corn silage.
Actual production cost
The actual production expense provides a method to account for the variable costs (seed, fertilizer, chemicals, machinery, labor, insurance, etc.) and fixed costs (land, taxes, etc.) associated with the effort to plant, grow, harvest and feed corn silage. The Ohio State Extension 2022 corn silage budget calculator values corn silage variable costs at $570/acre and fixed land costs at $390/acre for a total per acre cost of $960/acre to grow and harvest corn silage. A corn silage yield of $23 ton/acre calculates to a value of nearly $42/ton standing in the field, with a range of $37 to $45/ton varying by tonnage harvested.
The costs associated with silage harvest, hauling, packing, inoculation, storage loss and feed out are added to determine the final as-fed cost fed into the ration. The OSU Extension 2022 custom rate survey rates for chopping, hauling and packing range from $7 to $15/ton. Industry costs for inoculation range from $0.50 to $1.50/ton, storage shrink at $4 to $8/ton, and feed-out cost of $0.60 to $2.00/ton. Total corn silage cost is $59/ton (range $50 to $68/ton).
Alternative ingredient value
Alternative ingredient market value calculates an economic value on corn silage based upon market costs of ground corn grain, alfalfa hay (silage), soyhulls, corn gluten feed and soymeal. Ohio State Buckeye Dairy News publishes corn silage alternative market prices. Corn silage value per ton was calculated at $73, $92, $100 and $85/ton in the years 2020, 2021, 2022, and 2023, respectively. Corn grain ($/bushel) and 48% soymeal price ($/ton) in those same years was $3.70/$300, $6.00/$376, $6.45/$470 and $6.60/$435, respectively.
Pricing standing
Purchasing standing corn for silage must have an agreeable price for both the buyer (dairy farmer) and the seller (crop farmer). Step one is to determine the yield of corn grain in bushels per acre of the standing corn. Determine an agreeable grain price from local cash, forward contract or delayed pricing. Add the value of the silage fodder that is removed and deduct a harvest charge the seller will not incur.
Standing corn grain yield can be estimated by one of several ways: 1) leave multiple test blocks in each field that can be harvested as dry corn for yield, 2) use a grain yield estimate calculated by crop insurance or 3) harvest the standing corn as silage and determine bushels of corn from calculation.
Adjust total silage tons harvested on a 35% DM basis. Bushels of corn grain in each ton are determined by using the equivalent factor of 0.15 tons of corn silage harvested equals one bushel of corn grain. A general rule is each ton of corn silage contains 7 bushels of dry-shelled corn. The silage fodder value of the corn silage can be valued as grass hay equivalent. Corn silage is roughly 50% fodder on a dry matter base.
Every ton of harvested corn silage would remove about 400 pounds of fodder on a dry hay equivalent basis (15% moisture). Thus, 400 pounds of grass hay at $160/ton market price would equate to $32/ton value of fodder for corn silage removed. Remove the dry grain harvest cost for the seller since the grain producer will not be harvesting the crop as dry corn. OSU Ohio custom rates survey has a value of $10.50/ton to harvest, haul and fill a corn silage bunker.
Example
Standing corn that yields $25 ton/acre of corn silage (35% DM). The 0.15 factor equates to $167 bushel/acre of corn grain. This factor may be low in high-yielding grain corn. A corn price of $6/bushel generates $1002/acre for grain yield. $1002 divided by 25 tons of corn silage equals $40/ton of corn silage. Add $32/ton value for the fodder and subtract the $10.50/ton for the harvest charge. The final price of corn silage per ton is $40 + $32 – $10.50 = $61.50/ton.
Summary
Corn silage is a critical and key part of the production and economic return for your dairy farm. Communicate with silage contractors and neighbors on establishing the corn silage price. Have a safe, abundant and blessed silage season.
(Dwight Roseler is an adjunct professor with the Ohio State University Department of Animal Sciences and Jason Hartschuh is a dairy management and precision livestock field specialist for Ohio State University Extension.)
