Missouri Dairy Business Update

Volume 13, Number 7
July 2013


Corn Silage Custom Rate &
Pricing

With silage chopping season approaching, questions will soon arise about "what's the going rate for chopping?" and "how do I price corn silage this year?". The following information should be helpful as a guide:

Q: What is the custom rate for chopping corn silage?

A: Here's a sampling of custom corn silage chopping rates by state:

Missouri:
Chop only: $71.17/Acre or $7.50/ton
Chop, Haul & pile or fill bunker: $110.00/Acre or $18.67/ton

Kansas:
Chop only $5.45/ton
Chop, hauling & filling silo $8.18/ton

Iowa:
Chop, haul, fill silo: $7.90/ton

 

Q: What is a ton of corn silage worth this year?

A: Rough rule of thumb: Use the 6-8-10 rule depending on where you are buying it.

Standing in field:

6 X ($/bu price of corn at harvest) = $/ton of silage
example: 6 X $4.75/bu = $28.50 per ton

Chopped & delivered nearby:

8 X ($/bu price of corn at harvest) = $/ton of silage
example: 8 X $4.75/bu = $38.00 per ton

Coming out of silo after ensiling & shrink, delivered & ready to feed:

10 X ($/bu price of corn at harvest)
example 10 X $4.75/bu = $47.50 per ton

Guidesheets & Spreadsheets to fine tune pricing decisions to your situation:

http://dairy.missouri.edu/feed/

http://www.agmanager.info/policy/drought/

http://www.qualitysilage.com/

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