pricing alfalfa silage

[gjoost]

Does anyone have information on how much to charge for alfalfa standing in the field? I have a neighbor who wants to silage a field off. Would I charge as to a percentage of the western barley price, basis 65 % moisture?
thanks

[dalek]

Around here it generally goes based on what your average dry hay yield is, multiplied by what you think is a fair price for hay this year, minus the going custom rates for cutting,raking and baling. Not exactly scientific, it usually runs about $35-40/acre for 3-4 cuttings.

[melvill]

gjoost, the formula that many of the s. Alberta feedlots use for barley or other grain silage is this:

(Oct or Dec western barley futures) minus (a typical barley summer/fall grain basis) X 12.1 all divided by 45.93 for 64 or 65% moisture. Each year the basis is adjusted up or down from a typical basis depending on whether feedlots need or don't need silage.

The trick is establishing the basis and time of pricing. Many feedlots will price the silage from beginning of silaging through to the end of February (for those bullish barley futures).

The question is how to adjust the formula for alfalfa silage. I'd do a search of nutrient content of barley silage vs alfalfa silage on Ropin' the Web. Also call the Ag-Info Centre at 310-FARM to see if they have nutrient analysis.

Phone me if you need further explanation of the silage formula.

[melvill]

I reread the formula. It might be confusing. I'll try to make it easier to understand. If spreadsheet formulas make sense, hopefully, this one will:

(Oct or Dec west. barley) - (basis) all multiplied by 12.1. That number is divided by 45.93. The result is in $/ton.

There may be other formulas out there but they basically attempt to perform a similar function: convert silage to a grain-equivalent nutrient value.

[gjoost]

Thanks for the information.

[IAMTHEMOLE]

IS THAT DELIVERED TO THE PIT OR IS THAT IN THE SWATH?

[melvill]

Good question about delivery. That formula was for silage delivered to the pit. The grower was paying custom harvesters to cut, shop and haul the silage. The last time I checked, which was during the summer of '03, harvesting costs including cutting, chopping and hauling up to five miles was $8.00/tonne or $7.25/ton. I imagine those rates are a little higher now.

[IAMTHEMOLE]

Not sure on rates either, but I do know I would be extremely interested in hiring a custom crew at 7-8/mt del to the pit. I bet you would be looking at 8.5-9.5/mt this year with wages and fuel the way they are.