the potential values and cost of corn stover

Extension and Outreach/Department of Economics

The Potential Values and Cost of Corn Stover

Corn Stover Harvest & Transport SeminarOmaha, Nebraska

Sept. 10, 2013

Chad HartDepartment of Economics

Iowa State University


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Extension and Outreach/Department of EconomicsSource: NREL


Pricing Corn Stover

Added costs to seller (minimum price to accept)•Harvesting and transporting (unless buyer does it)•Nutrient replacement•Reduced tillage? (costs saved)•Yield effect?

Value to buyer (maximum price to pay)•Ethanol use: tied to price of gas and oil •Feed use: tied to prices of alternative feedstuffs

For trade to occur, the price must be between these values.


Costs to Seller (custom rates)Assume 2 tons of 80% dry matter stover harvested per acre (four 1,250-pound bales)

Harvesting costs $/acre– Chopping stalks $11.40– Raking $ 6.25– Baling ($11.50/bale x 4 bales/ac) $46.00– Collecting ($2.85/bale x 4 bales) $11.40– Transport (20 mi. @ $.20/mi/bale) $16.00– Total $91.05/ac.


Costs to Seller(variable costs only, including labor)

Harvesting costs, $/acre– Chopping stalks $ 9.84– Raking $ 5.31– Baling (including twine) $15.21– Collecting $ 4.25– Transporting ($3.65/ton x 2.5 tons)$ 9.12– Total $43.73/ac.

Based on Masters thesis by Kevin Peyton, Iowa State, 2012.


Nutrient removal per ton of dry matter – 3 lb. P @ $0.75/lb. $ 2.25– 19 lb. K @ $0.50/lb. $ 9.50

$ 11.75 / dry ton

X 2 tons/acre (dry matter) $ 23.50 / acre

+ harvesting costs (custom) $ 91.05 / acre

Total cost per acre $114.55

Cost per wet ton (2.5 t /acre) $ 45.82 / ton

Cost per bale $ 28.64 / bale


Nutrient removal per ton of dry matter – 3 lb. P @ $0.75/lb. $ 2.25– 19 lb. K @ $0.50/lb. $ 9.50

$11.75 / dry ton

X 2 tons/acre (dry matter) $23.50 / acre

+ harvesting costs (variable) $43.73 / acre

Total cost per acre $67.23

Cost per wet ton (2.5 t /acre) $26.89 / ton

Cost per bale $16.81 / bale


Maximum Price to Offer =value of feedstuffs replaced

per wet ton of stover fed

1.16 tons of hay @ $100/ton $116.00

Less 0.22 tons of DDGs @ $200/ton -$ 44.00

$ 72.00/t

or $45.00/bale


Bargaining Range

Seller’s Buyer’s

Minimum Maximum

Per wet ton $14.69 to $72.00

Per bale (1,250 lb) $ 9.18 to $45.00

Key determinant: who bares harvest,

transportation and storage costs


Cleanliness of stover?

Yield impacts of stover removal?

Less tillage needed?

Compaction?

Time needed for fall tillage and fertilizer?

Other Items to Consider

Source: Darr, et al. 2012


Some Guidance on PricingCorn Stover PricerAg Decision Maker -- Iowa State University ExtensionEstimate a price for corn stover standing in the field or harvested and stored.Ag Decision Maker information file A1-70 "Estimating a Price for Corn Stover" has more details.Please enter your input values into the yellow shaded cells.Place the cursor over cells with red triangles to read comments.

Feed value and nutrient costs for corn stover Nutrient removal rates, lb. / T dry matter (optional)Hay price for medium quality mixed grass/legume hay, $ per ton 125$ Nitrogen, lb.Price of dried distillers grains (DDGS), $ per ton 260$ Phosphorus, lb. 5.9 Price of anhydrous ammonia, $ per ton 800$ Potassium, lb. 25.0 Price of MAP (11-52-0), $ per ton 606$ Estimated weight of a large round bale (optional)Price of potash (0-0-60), $ per ton 600$ Bale diameter, inches 65Estimated moisture percent of stover, % 20% Bale width, inches 60Estimated weight of a large round bale of corn stover 1,250 Est. bale weight, lb. 1,268

Harvesting costs for corn stover Chopping stalks, $ per acre 11.40$ See current Iowa Farm Custom Rate SurveyRaking, $ per acre 6.25$ Baling, $ per bale 11.70$ Estimated bales harvested per acre (optional)Cost for plastic wrap (if used), $ per bale Corn yield, bu./acre 180Moving or transporting bales, $ per bale 8.75$ % of stover harvested 50%Bales harvested per acre 4.0 Est. bales harvested per acre 4.0

Value for large round bales of corn stoverValue based on costs to seller (minimum price to accept) Per Bale Per Wet Ton Per Acre

Pounds of nitrogen removed 0.0 0.0 0.0Pounds of phosphate removed 3.0 4.7 11.8Pounds of potash removed 12.5 20.0 50.0Value of extra nutrients removed 7.66$ 12.26$ 30.66$ Total harvesting costs 24.86$ 39.78$ 99.45$ Equals cost of corn stover (at the farm) 32.53$ 52.04$ 130.11$

Value based on the cost of alternative feed sources (maximum price to offer)Market value of 1.16 tons of hay minus .22 ton of DDGS 54.88$ 87.80$ 219.50$


Thank you for your time!

Ag Decision Maker web site:http://www.extension.iastate.edu/agdm/

the potential values and cost of corn stover

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