Drought 2012. James H. Jensen Farm Management Specialist 319-385-8126 firstname.lastname@example.org. Pricing Drought-damaged Corn Silage: Short M ethod. Standing silage (buyer harvests) Normal silage: 1 ton = 7 x price of corn Corn price = $6, 1 ton of silage is worth $42
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James H. Jensen
Farm Management Specialist
Standing silage (buyer harvests)
Cost to seller
Value to buyer
Buyer and seller can negotiate within this range.
See Ag Decision Maker decision file A1-65
32% of acres @ 75%
34% of acres @ 80%
15% of acres @ 85%
Variable costs for combining $15.00/a.
(fuel & repairs, or custom charge)
Expected price $7.00? / bu
- Extra P and K fertilizer if harvested
(.375 lb. P@$.65, .30 lb. K @$.60) $.42 / bu.
=Net price $7.00 - .42 -.35 = $6.23
= Breakeven yield = $15.00 / $6.23 = 2.4 bu/a.
Iowa trigger $710/a. $522/a.
Projected MY price $5.90 $14.00
Maximum yields 120 bu. 37 bu.
to trigger payment (Iowa average)