Wet corn could benefit farmers and ranchers

What’s good for corn farmers is usually bad for cattle producers, and vice versa. But this fall will be different if Upper Midwest farmers, as expected, harvest a large amount of high-moisture corn. 

 “There looks to be a win-win situation where the corn producers and cattle guys can work together,” says Vern Anderson, semi-retired animal scientist with the Carrington (N.D.) Research Extension Service.

   High corn prices help the people who raise and sell the crop and hurt the people who buy it as livestock feed. Low corn prices do the reverse. So, cattle producers have benefitted from plunging corn prices in the past year: a bushel of corn now sells for an average of about $2.50 at area grain elevators surveyed weekly by the Grand Forks Herald, about $1.50 per bushel less than a year ago.

   But as Anderson says, both groups might benefit from collaboration this fall. Because the region’s late-planted corn crop is less advanced than usual, much of the corn harvested this fall will have higher-than-usual moisture content.

   Many farmers will be reluctant to pay drying costs, especially since corn prices are so low, and are looking for alternatives. That increases the appeal of selling wet corn directly to cattle producers at a slightly higher price than corn farmers might receive otherwise. Ranchers, in turn, could pay a slightly lower price for the wet corn than they would pay for dry corn.

   “It’s something people will be looking at,” Jason Zahn, a Towner, N.D., rancher and president of the North Dakota Stockmen’s Association, says of potential dealings between corn and livestock producers.

   High-moisture corn is similar in energy and protein content to dry corn, so quality of the wet corn isn’t an issue, experts say.

   “It’s really good feed,” says Reid McDaniel, South Dakota State University Extension beef feedlot specialist.

  What’s a fair price?

   But there’s a potential stumbling block: how to determine a fair sales price for the wet corn.

   The extra moisture in the wet corn adds to its weight and skews its value. Dry corn typically is traded at 15.5 percent moisture, and the sales price for wet corn needs to be adjusted for excess moisture, extension officials say.

   For more information on pricing high-moisture corn, visit  www . igrow . org/agron omy/corn/pricing-high-moi sture-grain.

   High-moisture corn has both advantages and disadvantages, according to NDSU and South Dakota State University extension.

   The pros include:

   No drying costs.

   Corn yields usually are higher because there’s less ear drop in fields.

   Wet corn can spread out the workload during harvest. Earlier harvest can allow cattle to graze the field sooner. The cons include: High-moisture corn that’s been fermented can be marketed only through livestock. Additional processing and storage equipment might be needed. Anderson says storage facilities that limit oxygen are useful.

   High-moisture corn might need to be managed more carefully than dry corn in feed bunks.

  Making connections

   Some diversified farming operations raise both cattle and corn, making them their own source of, and market for, wet corn.

   Ranchers interested in buying wet corn and farmers interested in selling it should talk with neighbors, Zahn says.

   Local extension agents also might be able to match farmers hoping to sell wet corn with ranchers who want to buy it, Anderson says.

   He notes that cattle numbers in the Upper Midwest have dropped in the past few years. That reduces potential demand for high-moisture corn.

   “There aren’t enough cattle to eat it all,” he says.

Wet corn could benefit farmers and ranchers  By Jonathan Knutson

  Forum News Service

   What’s good for corn farmers is usually bad for cattle producers, and vice versa. But this fall will be different if Upper Midwest farmers, as expected, harvest a large amount of high-moisture corn.

   “There looks to be a win-win situation where the corn producers and cattle guys can work together,” says Vern Anderson, semi-retired animal scientist with the Carrington (N.D.) Research Extension Service.

   High corn prices help the people who raise and sell the crop and hurt the people who buy it as livestock feed. Low corn prices do the reverse. So, cattle producers have benefitted from plunging corn prices in the past year: a bushel of corn now sells for an average of about $2.50 at area grain elevators surveyed weekly by the Grand Forks Herald, about $1.50 per bushel less than a year ago.

   But as Anderson says, both groups might benefit from collaboration this fall. Because the region’s late-planted corn crop is less advanced than usual, much of the corn harvested this fall will have higher-than-usual moisture content.

   Many farmers will be reluctant to pay drying costs, especially since corn prices are so low, and are looking for alternatives. That increases the appeal of selling wet corn directly to cattle producers at a slightly higher price than corn farmers might receive otherwise. Ranchers, in turn, could pay a slightly lower price for the wet corn than they would pay for dry corn.

   “It’s something people will be looking at,” Jason Zahn, a Towner, N.D., rancher and president of the North Dakota Stockmen’s Association, says of potential dealings between corn and livestock producers.

   High-moisture corn is similar in energy and protein content to dry corn, so quality of the wet corn isn’t an issue, experts say.

   “It’s really good feed,” says Reid McDaniel, South Dakota State University Extension beef feedlot specialist.

  What’s a fair price?

   But there’s a potential stumbling block: how to determine a fair sales price for the wet corn.

   The extra moisture in the wet corn adds to its weight and skews its value. Dry corn typically is traded at 15.5 percent moisture, and the sales price for wet corn needs to be adjusted for excess moisture, extension officials say.

   For more information on pricing high-moisture corn, visit  www . igrow . org/agron omy/corn/pricing-high-moi sture-grain.

   High-moisture corn has both advantages and disadvantages, according to NDSU and South Dakota State University extension.

   The pros include:

   No drying costs.

   Corn yields usually are higher because there’s less ear drop in fields.

   Wet corn can spread out the workload during harvest. Earlier harvest can allow cattle to graze the field sooner. The cons include: High-moisture corn that’s been fermented can be marketed only through livestock. Additional processing and storage equipment might be needed. Anderson says storage facilities that limit oxygen are useful.

   High-moisture corn might need to be managed more carefully than dry corn in feed bunks.

  Making connections

   Some diversified farming operations raise both cattle and corn, making them their own source of, and market for, wet corn.

   Ranchers interested in buying wet corn and farmers interested in selling it should talk with neighbors, Zahn says.

   Local extension agents also might be able to match farmers hoping to sell wet corn with ranchers who want to buy it, Anderson says.

   He notes that cattle numbers in the Upper Midwest have dropped in the past few years. That reduces potential demand for high-moisture corn.

   “There aren’t enough cattle to eat it all,” he says.