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High Oil Corn Model

Other Value Considerations

Information about the direct value through premiums or via feed value can be found at:

Link for contract sales information page

Link for grain to be fed-on-farm sales information page


Other value considerations:

Grain produced in the TopCross® system requires some special considerations that can add to or detract from the overall value. Specific will depend on a case-by-case analysis, but the general factors to be considered are:

Identity Preservation (IP): Since high oil corn carries extra value then mixing with regular corn will destroy that extra value. The grain must be kept separate (IP) from the field to the elevator, or feed mill. There is some additional cost associated with IP practices, and this must be included in the calculations. Each situation must be considered to come up with the most appropriate level to use: the numbers reported by growers tend to vary from 2 cents/bu to 7 cents/bu.

Grain Handling: Many people report that high oil corn is easier to handle through milling equipment (especially the smaller equipment), and that wear-and-tear is decreased.
Studies have shown that dust suppression can be signifcant with high oil corn, and this improves the milling and feeding environment.
Some producers have found that not having to manage a grease tank is an another attractive additional benefit for high oil corn.
Again each of these situations will vary and inputs must be determined on a case-by-case basis: reports of benefits are from 2 cents/bu to 10 cents/bu.

Management time/risk: Growing and using high oil corn can have several benefits. However, it takes additional management time and understanding to make this work. Also, there is an element of risk associated with high oil corn. Individuals may or may not want to attach a cost to this.

Combinations of traits: Today, high oil corn composition allows for the several benefits discussed. In the future, the addition of more traits with specific value will add to the overall gains to be had from producing and using special trait corn. High oil will be combined with other traits such as high lysine or low phytate. Potential extra costs such as management time, identity preservation, etc., will be the same for one trait or for many traits yet the value of the corn will increase with more traits. Thus, combinations or stacked traits will bring opportunities for even more value generation and capture.

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corninfo@ncga.com