How does the cost of Corn Silage measure up? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ben Hamm , P.Ag. Farm Management Specialist
What we already know… • Doing your cost of production for your own farm is the starting point for profitability. • Determining your cost per lb DM will allow you to build an effective marketing plan. • Each year is different! Profitability and risk is dependent on the relationship between yield/price/costs with your financial situation. (Plan for Prosperity)
Advantages of Corn Silage • Tonnes!!! Excellent energy source • Less land needed • Silage can be harvested in almost any weather conditions • Higher output of nutrients per acre than grain • Can salvage crops damaged by hail, frost and high weed competition • Large quantities of uniform quality feed can be stored • Handling is mechanized from the field to feed • Control of intake and ability to get mineral into the cows • Free summer
Disadvantages of Corn Silage • Disadvantages • Requires more labour and equipment • Has an odour that may be offensive if stored near populated areas • Capital investment required for storage facilities, forage harvester • Has limited market potential. Long distance transportation is inefficient because silage is heavy and deteriorates with exposure to air.
Advantages of Baled Silage • Use the same equipment as dry hay • Requires less labour and energy for harvesting compared to chopped silage system • Requires 1/2 to 1/3 the drying time compared to dry hay – Only 13 to 20 hours vs 40 or more for dry hay • Permits harvest at optimum stage despite weather • Opportunity to utilize crops that are hard to dry down – high yielding alfalfa • Less leaf loss – 5% compared to 20 to 30% – Increased feed value • Less feed loss at feeding due to increase in palatability
Disadvantages Increased cost due to plastic and wrapper cost • • Harder on baler – heavier bales • Hard on loaders and front axels of loader tractors – increased repair bills?? • Bales can spoil if plastic punctured by rodents, wildlife, birds, wind, and hail Low moisture forage will not ferment- less than 40% increase risk • of mold • High moisture forage will producer sour silage- greater than 70% • Freezing problems • Have to be used up within 3 days if taken out of plastic • Harder to sell- heavy bales, have to be used up immediately Shorter storage life compared to chopped silage • • Used plastic to deal with
Fertilizer Cost
Without Storage Loss
Without Storage Loss
With Storage Loss
With Storage Loss
Cost of Protein
Cost of TDN
Most importantly balance the ration!
$/lb DM TDN with 20 ton Corn Silage
$/lb DM Protien with 20 ton Corn Silage
2018? Good, Bad or Ugly? CAUTION: Objects in the Mirror are Closer Than They Appear!
Price vs Cost - Fertilizer Pricing • Price – How much money do I need to hand you to buy my fertilizer. • Cost – What did I have to give up to get this price. • Expense vs. Investment: • Investment provides a return over what you’ve paid, an expense will not. • Questions : • Is it really cheaper for you to buy in the fall (cost of money, bins etc.) than in the spring? • Is it really cheaper to buy from the ‘new’ dealer 20 miles down the road for $5 per tonne less?
Cash Rent Based on Gross Revenue • Average range of cash rent across western Canada is 18 to 22% of gross revenue. • But how much is too much???
Breakeven Land Rent Calculation Gross Revenue - Operating Cost - Equipment Cost - Labour Cost / Owner withdrawal - Storage Cost = Cash for Land Rental
Land Rent Based on Investment Return on Land Value (Landowner check & balance) Land market value $1925 per acre x Long Term Investment Rate (5yr) 2.75 % + Property taxes $10.00 per acre Total Cash Land Rental $58.00 per acre
Farm Software & Worksheets (Forage) • Farm Machinery Custom & Rental • http://www.gov.mb.ca/ Rate Guide Calculator - 2016/17 agriculture/business- • Standing Hay Cost Calculator and- • Feedplan economics/financial- • Hay storage cost planner management/farm- • Hay Production Cost 2018 software-and- • Silage Production Cost 2018 worksheets.html • Pasture Production Cost • Cropland Rental Rate Planner
Obviously you’re telling me… • The more accurate your own numbers, the greater your chances are for profitability. • It’s vital to know the risks and rewards of your forage crop. • Before seeding, compare forage mixtures for profit probability . • After seeding, update your actual costs to keep on top of profitability
Questions ? For more information Visit our website: www.manitoba.ca/agriculture Follow us on Twitter: @MBGovAg View our videos on YouTube: www.youtube.com/ManitobaAgriculture Contact us: Ben Hamm, P.Ag. Roy Arnott, P.Ag. benjamin.hamm@gov.mb.ca roy.Arnott@gov.mb.ca Vita Ag Office Killarney Ag Office 204.392.9350 204.523.6424
Recommend
More recommend
