Buying High Moisture Corn at Harvest Time

Buying High Moisture Corn at Harvest Time

Mike Rankin
Crops and Soils Agent
University of Wisconsin - Extension

1. Background

· Although dry corn prices will vary from year to year, they are traditionally lowest at harvest time when supplies are greatest.

· For local farmers who have appropriate storage available, buying high moisture corn at harvest, based on its dry corn value, may be of interest.

· Here’s one method.

2. Example

· Let’s say dairyman Smith has a field of 26% kernel moisture standing corn.

· Dairyman Jones wants to buy it for high moisture shell corn and will do the combining.

· How can Smith and Jones arrive at a value?

3. Procedure

a. The value of high moisture corn depends initially on the kernel moisture content.

· Using the chart below, we find that with 26% kernel moisture, there are 31.1 bushels of 15.5% shell corn in one ton of wet shelled corn.

Estimated pounds of corn at selected moisture levels to equal one bushel of shelled corn at 15.5% moisture and approximate number of bushels of 15.5% moisture shelled corn in one ton of wet corn (one-half of one percent has been included as dry matter loss).
Percent Moisture in Kernels	Pounds of Ear Corn to Equal 56# 15.5% Shelled Corn	Bushels of 15.5% Shelled Corn in One Ton of Wet Ear Corn	Pounds of Shelled Corn to Equal 56# 15.5% Moisture Shelled Corn	Bushels of 15.5% Shelled Corn in One Ton of Wet Shelled Corn
16.0%	69.5	28.8	56.6	35.3
17	70.8	28.2	57.3	34.9
18	72.1	27.7	58.0	34.5
19	73.4	27.2	58.7	34.1
20	74.8	26.7	59.5	33.6
21	76.2	26.2	60.2	33.2
22	77.7	25.7	61.0	32.8
23	79.2	25.3	61.8	32.4
24	80.8	24.8	62.6	31.9
25	82.4	24.3	63.4	31.5
26	84.1	23.8	64.3	31.1
27	85.8	23.3	65.2	30.7
28	87.6	22.8	66.1	30.3
29	89.4	22.4	67.0	29.9
30	91.3	21.9	68.0	29.4
31	93.2	21.5	69.0	29.0
32	95.1	21.0	70.0	28.6
33	96.9	20.6	71.1	28.1
34	98.8	20.2	72.2	27.7
35	100.7	19.9	73.3	27.3

3. Procedure

b. Checking with a local elevator, we find that a local elevator that Smith and Jones work with is paying $2.30/bushel for 15.5% moisture shell corn.

· Thus a ton of our high moisture shell corn, with 31.1 bushels of 15.5% shell corn in it is worth about $71.53 a ton. (31.1 bushels x $2.30/bushel.)

c. If Jones is doing the combining, adjustment for harvesting needs to be made.

· One approach would be for Smith and Jones to review previous crop record yields from this particular field. Agreement is reached that typical yields are 110 dry corn bushels/acre.

· It costs Jones $22 per acre for combining or a per bushel charge of ($22/acre ÷ 110 bushels/acre) 20¢/bushel.

· This would bring the value down to $65.31 a ton (31.1 x $2.10)

d. Compensation for savings in drying cost is also worth discussing. Farmers often split the savings in drying cost.

· Current costs at the elevator suggest a drying rate of 2¢ per bushel per point to 15% moisture.

· It’s likely that this corn would not have been sold at this high of moisture. Thus, some compromise should be reached.

· Smith and Jones agree to a 10¢/bu drying charge.

· This would bring the value down to $62.20/ton. (31.1 x $2.00)

e. Compensation for hauling distance is sometimes discussed. Fuel usage and value can be used as a basis.

· For this example, we’ll assume that Smith and Jones are neighbors and that compensation for hauling is not important.

f. Jones will weigh a wagon empty, weigh a wagon full, and subtract to find the tons per wagon load. Jones will then keep track of the loads removed.

g. This process can also be used for ground ear corn. Values used should be kept current from year to year.

For more information contact Mike Rankin