Estimating a Fair Value for Standing Forage

July 29, 2020

Estimating a Fair Value for Standing Forage

By Jay Parsons - Farm and Ranch Management Specialist, Daren Redfearn - Extension Forage Crop Residue Specialist, Mary Drewnoski - Beef Systems Specialist

wheat being cut for forage

What’s your forage really worth? UNL ag economists break down how to calculate a fair value for standing forage — from hay to silage — with examples and a free pricing tool.

Cutting and windrowing forage wheat in south-central Nebraska for processing into wheatlage. (Todd Whitney | Nebraska Extension)

Several things need to be considered when deciding what value to place on standing forage. Forage prices reflect current inventories, demand, expected current season production and associated yield risk, and quality characteristics.

Standing forage can be harvested in a number of different ways, which also needs to be taken into account in deciding how to price it.

The Cornhusker Economics article "Estimating a Fair Value for Standing Forage" explores the following:

  • Provides a few general thoughts and questions concerning harvesting method and comparable feed value to consider when pricing standing forage.
  • Gives a few examples illustrating pricing calculations for forage mechanically harvested as hay, haylage and silage.
  • Includes pricing considerations for forage harvested by grazing.
  • Insights on utilizing the Value of Standing Forage Excel Tool.

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