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Re: Forage production costs and pricing strategies
In response to Time Griffin's question 2 about forage evaluation:
>2. They are also wondering about different ways to establish
>prices for forage crops, both wet and dry (silage and hay). There
>interest is being able to obtain more money for higher quality. I have
>reveiwed prices from tested hay in Pennsylvania auctions, and the
>relationship between quality (RFV) and price is not very strong. The
>have also discussed imputed prices (cost of replacing energy and
>protein with concentrate). While this method is easier, it
>undervalues fiber in rations for high-producing cows.
>
>Are there other pricing options in use that would be equitable for
>both buyer and seller?
>
Some years ago we developed Cornell FORVAL and it is still a useful forage
pricing tool for us. The original reference was JOURNAL OF AGRONOMIC
EDUCATION 17:122-127; 1988. A revision (version 2.0) is what we are using
now. Its disadvantages are needed market prices for corn grain, soybean
meal, high quality alfalfa hay, timothy hay, and oat straw plus forage
quality analysis (CP, ADF, NDF, and DM) for the forage to be priced. Its
advantages are a market-based values fair to both buyer and seller, and
applicability to most forages. The last is not true of RFV, which works
best with alfalfa-based forages. I will provide a copy of the program with
a formatted disk (DOS system) and a stamped self-addressed return mailer.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Gary W. Fick
Dep. of Soil, Crop and Atmospheric Sciences
Cornell University
Ithaca, NY 14853
Telephone 607-255-1704
FAX 607-255-2644
E-mail gwf2@cornell.edu