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C IL | So in your example, it costs 16 cents/point to haul wet beans to elevator #2. You are calling it drying costs, although your elevator captures that margin via a shrink calculation. I have no local choice that charges a 1.4%/pt plus fixed drying charge per bushel, although I am happy for you that you do.
I am saying my local elevators capture that margin via a shrink calculation, for hauling in wet beans.
Either way, you and I are taking a loss, which you called highway robbery at $0.16/pt, for wet beans, at elevator #2. I agree. I earlier stated it cost us more per bushel this year to haul in dry beans than wet beans, up to $0.28/Bu, due to not selling that potential water.
I have stated repeatedly in this thread that the shrink (or drying) savings contributes to the putative bin ROI, as well as typical basis and carry factors. So, If We said you could pay for a bean bin with carry, basis, and drying factors (instead of shrink - same outcome, different wording) would you buy in? Now add in the ability to rehydrate beans to add pounds.
Unless I am making a conceptual mistake in my spreadsheet calculations, I'm not sure how we can afford not to have a bean bin with a rehydration system in it. But - I have yet to hear from someone who has one. Perfect is the enemy of the good, so if we can get 90% of the missing $0.16/28 back and haul of some 12.8% beans, what's wrong with that?
I must really be missing something in these calculations, as you seem determined that the math doesn't add up. It's a lot cheaper to visit on here than pour concrete in error, so if you can show me how my math is wrong, I'm happy to continue the discussion.
We can typically air-dry 17% corn cheaper than running it through a circu- flow (maybe not since propane prices fell out of bed, but they are back up some) and soybeans are rumored to dry/rehydrate substantially more easily than corn. I've grown continuous corn my adult life with the exception of the last couple years, so I am looking at this soybean thing through a newer perspective.
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This year's elevator shrink for beans: $/bu over actual shrink
