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Forage production costs and pricing strategies
October 4, 1995
TO: Forage-mg
FROM: Tim Griffin
University of Maine Cooperative Extension
Several local potato farmers are evaluating forages as alternative
rotation crops, and have several questions about costs and pricing.
They are as follows:
1. They are looking for production cost information;
specifically, cost information obtained on farms or through farm
records. Ideally, this information would be from northern U.S..
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?
Thanks.
*******************************************************************
Tim Griffin tgriffin@umce.umext.maine.edu
5722 Deering Hall Phone: 207-581-2942
Orono ME 04469-5722 Fax: 207-581-2941
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