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Pittsburg, Kansas | Lots of good reasons to own bins and some not so good reasons. I have not made it through all the previous posts, but may have a reason not yet mentioned.
Posession.
When the grain is in YOUR bin it is YOUR grain.
When you put grain in open commercial storage your grain becomes THEIR grain (or the bank that holds the loan on the facility if it goes belly up). You become an unsecured paper holder.
That fact generally remains unimportant until facility failure happens specifically to you. Then it can become business destroying important. Every few years we get a new lesson on ownership importance somewhere in the news about some grain facility or merchandiser that went broke and left the farmers with grain as unsecured creditors sucking hind teat to the bank.
I've had the unpleasant first hand experience once early in my career and a very close call the second time. It happens.
It is much like money in the bank. When you deposit money in the bank it becomes the banks money (no longer yours) and you are an unsecured creditor with an agreement that says the bank will give it back to you on demand. Difference there is FDIC insurance is there to cover any individual bank failure (like some states provide for a grain insurance fund).
The big boys don't make the rules for the little guy. As long as the grain is in your bin the title is still in your name (although if you have an operating loan most likely the bank has a claim on it, but I digress. That is a different story).
John
Edited by John Burns 7/16/2017 01:00
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GRAIN BINS-Marketing advantages
