Central KS | coup - 9/6/2015 20:32
Economics of on farm storage would work the same in Kansas as IL. Even if yields and weather are different.
Take for example the wheat deal this year with quality issues. Poor quality wheat that is worth $ 2 @ an elevator after discounts vs on farm storage that gives a personal the ability to sell the wheat @ some point down the road for $3-$4 bu gain.
Corn hauled out of the field @ 22% dryed and stored @ a country elevator till Jan vs drying and storage on the farm. Adds about $.50 bu to the COP @ current LP price.
$.50 x 160 bu x 5 years = $400 acre.
Those who used the fat since 07 to pay for on farm storage and drying have a definite advantage over those who didn't.
Or just haul quality wheat to the elevator at harvest for $5.50-6.00, as it was here during harvest. Basis was less than a dime. Over a 5 year average, the wheat I haul to the elevator at harvest has madd me way more money, than many guys I know that have sat on it.(Elevator or their own bins)
The one crop in our area where money can be made with storing till spring is beans. Crusher mill always pays $1.50-2.00 higher late spring or early summer. Problem with any spring planted crop in our area, is being able to grow it. |
Central Kansas elevators......
