Pricing Standing Forage Crops – Your One-Stop Shop

Dianne Shoemaker, Farm Management Specialist, Ohio State University Extension; Dr. Mark Sulc, Professor and Extension Forage Specialist, Department of Horticulture and Crop Science; and Dr. William Weiss, Professor Emeritus, Department of Animal Sciences, The Ohio State University

Warmer weather is here.  As forage crops have broken dormancy, so does the perennial question of how to price standing forage crops.  Whether they are vegetative small grain crops, pure grasses, grass and legume mixes, or pure legume stands, the fundamental considerations are the same:

1. Determine market price of an equivalent crop
2. Calculate and apply deductions:

a. Cost of harvest, including mowing, tedding, and raking
b. Cost of baling
c. Cost of hauling
d. Risk – nutrient variation
e.Risk – weather, etc.

3. Adjustments: These optional adjustments can be made if a forage analysis is done post-harvest:

a. Dry matter
b. Feed value – If this option is chosen, then there is no deduction made for risk of nutrient variation (d above).

Clearly, this is not a quick process, but when . . .

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