Estimating a Fair Value for Standing Forage

Value of Standing Forage Tool

Purpose:

This Excel tool helps farmers and ranchers estimate a fair price for standing forage based on how it will be harvested as hay or silage.

Outputs:
  • Value per ton – useful for comparing to feed prices.
  • Value per acre – useful for negotiating standing forage sales

Getting Started

  1. Download the excel file (https://cap.unl.edu/forage/)
  2. The file contains three worksheets (tabs):
    • Hay Table – calculates a fair value for forage harvested as hay.
    • Silage Table – calculates a fair value for forage harvested as silage.
    • Multiplier Table – shows how the corn grain price is converted to a standing corn silage value and allows adjustment for different forage types.

Each worksheet allows you to enter your own prices, yields, and costs.

Standing Forage Tool

Hay Value

This sheet estimates the per-acre or per-ton value of standing forage to be mechanically harvested as hay.

Steps:

  1. Enter the market hay price ($/ton) for hay of comparable quality.
  2. Enter expected forage yield (tons/acre) and average bale weight (lb).
  3. Input harvest costs (use your own or UNL Custom Rates):
    • Mowing cost ($/acre)
    • Raking cost ($/acre)
    • Baling cost ($/bale)
  4. The sheet calculates:
    • Harvest cost per ton
    • Fair standing value ($/ton and $/acre) after subtracting harvest costs and applying an optional risk discount (10–20%) to account for weather or quality risk.
Silage Value Table

This sheet estimates a fair price for forage harvested as silage, based on the corn grain price and the relative feed value of the forage.

Steps:

  1. Enter the corn grain price ($/bu).
  2. The tool uses a multiplier (default ≈ 7.65; this is customizable see multiplier tab) to estimate the standing corn silage value ($/ton).
    This assumes:
    • Corn grain is 85% dry matter.
    • Corn silage is 35% dry matter.
    • Grain makes up about 52% of total plant dry matter.
  3. Enter TDN (total digestible nutrients) of your forage and of corn silage.
  4. The tool adjusts the corn silage value by the ratio of forage TDN to corn silage TDN.
  5. Enter expected yield (tons/acre) to calculate the per-acre standing forage value.
Multiplier 

This table shows the adjustment factors used in the silage calculation and allows you to customize them for your own operation.

Use it to:

  • Change assumptions for dry matter content, grain proportion, or harvest costs.
  • See how these changes affect the conversion factor (multiplier) between corn grain price and standing corn silage price.
  • If your situation differs from the default you can use this new multiplier in the silage tab
Tips for Use
  • Use local custom rate guides or your own records for accurate cost inputs.
  • Apply risk discounts when buyers assume weather or quality risk.
  • Always document agreements to avoid misunderstandings.

We have outlined key considerations and provided a few examples in this Cornhusker Economics article Estimating a Fair Value For Standing Forage