Premium Value When Fed on Farm

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For grain to be fed on-farm:

Grain produced in the TopCross® system may be fed on-farm to capture the value from higher energy density and the enhanced levels of amino acids. This is essentially a replacement value versus choice white grease, soy meal and other additives.

Although the value for a particular type of livestock and a specific age of animal can vary, and should be considered, the general relationship between Optimum® 80 high oil corn and value varies with corn, soy meal and fat prices. The range of extra values can be from 10 cents/bu to over 50 cents/bu. For example:

As a general rule the higher the price of soybean meal the more added value there will be, but the higher the price of regular corn the lower the added value. Since demand for corn and soybeans is likely to increase, these factors may off-set each other to some degree. Thus, the price of fat/white grease will be the major driver.

As more high oil corn is used, and demand for white grease drops, the price of white grease will also drop. As shown in the chart, there is a huge difference in the value of high oil corn when the price of grease goes form $0.22/lb to $0.08/lb.

One factor that alters the driving force of white grease price, is that several feed attributes will be stacked together in future corn. The convenience of packaged attributes, and the value of other traits, may well compensate for some portion of the competitive drop in grease prices. Therefore, as more traits are stacked, the value of the corn will increase --but calculating what that value actually is will become more and more complex.

In general, high oil corn, has some additional benefits such as much lower dust levels in feeding operations, improved palatability, better uniformity in mixing, and easier handling of feeds. These attributes add value but are often situation dependent, and are more difficult to quantify in direct financial terms for a general situation.

LINKS TO:

Optimum Quality Grains "University" site

Direct to information from Optimum on feeding high oil corn.

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