Valuing a standing crop of silage

With second-cut silage underway or nearing harvest, Manager of the Teagasc Future Beef Programme, Martina Harrington provides key figures and tips on how to value a standing crop of silage.

To value a standing crop of silage, you first have to look at what is the cost of the alternatives. In the example outlined below, we are using a concentrate costed at €320 per tonne and a 68% dry matter digestibility (DMD) silage.  

You estimate the value of the standing crop, then subtract the costs incurred to ensile the silage, the balance is what you can afford to pay for a standing crop. The price you pay will have to compensate the grower for slurry, fertiliser, lime and the rent of the land.

Step one: Estimate the value

The calculation on how to estimate the value of a standing silage crop, before factoring in ensiling costs, are presented in table 1 below. In this example, a concentrate cost of €320/t, with an energy density of 1.1 UFL per kilogram of dry matter, and an estimated silage quantity of 7 bales per acre and DMD of 68% is used.

If undertaking this calculation on your farm, identify the cost of concentrate, its energy density and estimate the quantity of bales and quality of the standing crop of silage.  

Table 1: Valuing a silage crop before ensiling costs

*220kg of a bale weight is used as a guide. This represents the dry matter weight of the bale; not the fresh weight. Some bales will be heavier or lighter depending on the baler used.

Step two: Subtract the ensiling costs

Once you have calculated the value of the standing crop of silage when compared to the concentrate it may replace, the next step is to subtract ensiling costs, such as mowing, baling, wrapping and stacking. These costs may vary from farm to farm, but example costs of €25/bale and €150/ac of pit silage are used in the examples below.

Table 2: Subtracting ensiling costs to value a standing crop of silage

*The above are guideline ensiling costs only. Speaking to your contractor in advance of completing this calculation is advised to include the costs specific to your own farm and to assess the impact of drawing silage from other farms.

Differing concentrate values

Below are tables showing the value of standing crops when concentrates are at different values. You have to deduct the ensiling cost from each to get the price that can be paid for the standing crop. E.g. Concentrate costs €320, table 3, the yield is 6 bales per acre and its 70 DMD silage, the crop is worth €299 minus the ensiling cost of €150 (6 bales x €25) leaving the crop at €149.

Table 3: Value per acre at concentrate price of €320/tonne

Table 4: Value per acre at concentrate price of €340/tonne

Table 5: Value per acre at concentrate price of €360/tonne

For more information on the Future Beef Programme, click here.

Also read: Ensuring you have enough fodder for winter 2024-2025