If you haven’t ever calculated your return on investment for a specific corn silage hybrid, now is a good time to start.
Knowing the ROI gives you the ability to make decisions on silage hybrids that will best improve the profitability of your dairy operation, says Karl Nestor, senior animal nutritionist, Mycogen Seeds.
In order to determine the ROI of a silage hybrid, Nestor says you will need to know the following:
- Cost of the hybrid in terms of feeding value — this includes input costs such as seed cost, yield, acres used, fertilizer, equipment and storage.
- Total ration cost.
- Milk production response as a result of the hybrid.
- Return generated by that response.
You can calculate ROI yourself. Remember, ROI is expressed as a percentage and considers the annual benefit divided by the investment amount.
Or, you can talk to a representative or dealer from Mycogen Seeds to use their ROI calculator.
Mycogen has developed a spreadsheet that calculates ROI based on the input cost, ration cost, and responses generated. Work with your local representative to determine the ROI for the hybrids you use or are considering. If your representative does not currently have access to this tool, have them contact Jordanna Carstensen at (262) 938-5457.
"The key is that the producer is able to measure a change in milk production based on hybrid change alone. Any decision can be based on ROI if the result of the decision has a measurable effect and that effect has an economic value," Nestor concludes.
For more information, contact Nestor at (330) 262-6130 or e-mail: email@example.com.