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| I am contemplating adding some grain bin storage to store corn on my farm. I have searched and read through previous "grain bin" discussions on here so I apologize if this is a worn out topic for some. I can only store 18% of total production currently. . I am fully aware of the "invaluable" harvest efficiency benefits. I would like some input specifically on the marketing advantages/strategies from those with storage facilities. I am 29 and have farmed for 5 years. Currently I have to pick oct. delivery prices throughout the year to sell off the combine in the fall. I am not comfortable with this strategy but they have been my best sales in 15&16. I do not sell up to my bushel gaurantee so I do have bushels that are unpriced & I must make a decision with in the fall. With the glut of corn in our area- the ethanol plant does not take un-contracted corn until after the first of the year (that has been the case in 15&16) The elevator I can deliver to charges an 18 cent/90day minimum- that means if you elect to store and a day later decide to sell- you are charged 18 cents up to 90 days, then a traditional pro/rated rate structure applies. seems like rape to me. The elevator is always 10 cent worse basis than e-plant & they do not recieve a kernel of corn in the fall until ethanol plant switches to contracted corn only. I have determined my commercially stored bushels have been my WORST SALES by atleast 30 cents compared to my on-farm stored corn. A new crop snapshot from today: my Eplant is bidding 3.47 for OCT. delivery, 3.60 March, 3.69 July. SO- I am looking to add storage capacity only- no drying/conditioning. For easy figuring I will use $2.00 per bushel for new storage construction. (I have received quotes +/- this figure for my project.) Do you think I could net that $2.00/bu back over my farming career by storing those bu. on farm? Using an FSA loan I can get my payments to about 29cents a bushel. I am interested in hearing from others if they would build more storage- or develop a more sophistacted marketing strategy for my current storage situation and use bin payment dollars for other on-farm investments such as tile. Also-those with bins- how do you typically price your grain in the bin? Do you use any strategies other than HOPE? Any/all input would be appreciated. | |
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GRAIN BINS-Marketing advantages
