June 1997

Cost Comparison of Forage Harvesting & Storage Systems

This publication provides a method for calculating the relative costs of several forage harvesting and storage systems: round bale dry hay; mid-size square bale dry hay; round bale silage stored in a tube or a plastic wrap; mid-size square bale silage plastic-wrapped; and chopped silage in a bunker silo or in a bag. Where possible, cost information was taken from the Manitoba Agriculture, Food and Rural Initiatives's publication Farm Machinery Rental and Custom Rate Guide. These rates are guidelines and should be adjusted for individual situations. Information can also be obtained from dealers, farmers in the business, custom operators and local extension staff.

The assumptions for each method are listed. Two sizes or scales of operation are listed - 500 tons and 1,500 tons of dry matter - roughly the amount of feed required by 300 head and 900 head of backgrounding-weight cattle for a seven-month feeding period.

Hiring the harvesting and storing operations by custom operators should be investigated as specialized equipment used for low tonnages can be quite expensive. In addition to lower operating costs, the investment in machinery and equipment does not have to be made.

The tables show how to estimate costs, but the total cost figures are not meant to show which system is superior. Under different conditions or assumptions of costs, the results can be quite different.

Choosing a system that meets the needs to harvest, store and feed in a timely manner at least cost becomes an individual decision.

To compare systems, make an estimate of the capacities and requirements of each component in a coordinated system and then estimate the benefits versus the costs of making the change for a particular situation.