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Pricing corn silage
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J. Sheehan
Posted 11/18/2011 23:47 (#2056652 - in reply to #2056212)
Subject: RE: Pricing corn silage


Sunnyside, WA
Depends what your grain to stalk ratio is in your area. Here it is 1000 tons of silage equals 7000 bushels of corn or 196 tons of corn grain (roughly a 5:1 ratio). I priced 3/4 of the corn silage off the CME. We decided on a basis, took out the harvest credit, and use a 5:1 factor for silage. Chopping and hauling is paid for by the buyer. I buy when I want to buy on the CME and the grower sells when he wants to sell. Worked great this year for me and takes almost all the price discussion out of the equation.

$6/bu corn equaled $40.75/ton corn silage standing in the field for me this year.

Edited by J. Sheehan 11/18/2011 23:49
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