Drought '07 Ohio State University Extension Pricing Drought-Stressed Corn Silage Bill Weiss (July 2007)   (See:  http://dairy.osu.edu/resource/feed/Pricing%20silage%202002%20Final.pdf)   The value of drought-stressed corn silage can be estimated using expected nutrient composition and the cost of the nutrients.  The average composition of drought-stressed corn silage in Table 1 is reasonable, but the composition of silage for a specific situation (e.g., hybrid, growing conditions, etc.) could be substantially different.  The nutrient values were calculated based on numerous feed prices in central Ohio.   Table 1.  Average composition of drought-stressed corn silage and current (March-July 2007) value of nutrients in Ohio.   Nutrient1 Concentration Units/ton DM Nutrient value Value, $/ton RDP 5.9% 118 lbs -0.116 $/lb -13.7 dRUP 2.2% 44 lbs 0.188 $/lb 8.3 nNDF 5.0% 100 lbs -0.07$/lb -7.0 eNDF 45.0% 900 lbs 0.038 $/lb 34.2 NEL 0.60 Mcal/lb 1200 Mcal 0.11 $/Mcal 132.0 Total       $154/ton DM   1 RDP = rumen degradable protein (% of dry matter), dRUP = digestible rumen undegradable protein, nNDF = non-effective neutral detergent fiber (NDF), eNDF = effective NDF, NEL = net energy for lactation.   The $154/ton of DM (+$20) or $54/ton (+$7)assuming 35% dry matter is the value when fed to the cow and includes harvest and storage costs and shrink.  If you are purchasing standing corn, the purchase price must be adjusted to account for these costs.  In addition when purchasing standing corn you assume the resulting silage will be well-fermented and have shrink and nutrient composition similar to what was estimated.  These assumptions do not always come true.  When you purchase standing corn, in contrast to buying fermented corn silage, you assume additional risk and the price of standing corn should be discounted to account for the risk.  I cannot give you a value for risk; each buyer must determine that value for himself.   Price of Standing Corn (assumed 35% dry matter)   Value of corn silage when fed to cow              $54/ton of 35% DM silage Harvest and storage costs    (minus) $12/ton Shrink (10%)                                                  (minus) $5/ton Risk         (minus) --?-- Price of standing corn                                      Equals $37/ton (+$5) minus the value of risk For many people both the price of corn silage ($54/ton) and the price of standing corn ($37/ton) seems extremely high (and they are).  However, you have to consider replacement costs, i.e., what will it cost if I have to purchase other feeds to replace the nutrients provide by corn silage.  Also this is the maximum price a farmer should pay for purchasing corn silage or standing corn.  The seller (grower) should estimate his potential gross earning per acre if he sold the crop as grain (minus harvesting costs) and that value becomes the lowest price he should sell his crop for as silage.  The actual selling price should probably be somewhere between those two numbers.     All educational programs conducted by Ohio State University Extension are available to clientele on a nondiscriminatory basis without regard to race, color, creed, religion, sexual orientation, national origin, gender, age, disability or Vietnam-era veteran status. Keith L. Smith, Associate Vice President for Ag. Adm. and Director, OSU Extension. TDD No. 800-589-8292 (Ohio only) or 614-292-1868   | C.O.R.N. | Newsletter | Ohioline | Publications |