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SE Nebraska | I am but 3 is a little high, payback is variable per year so we will just use coop storage rate. Figure 4 months at 7¢. $.28. I will spend about $2000 on electricity for 115000 bu so we will round to 2¢. Another $.02 on auger in and out. 1% shrink so $.04. so that puts us at $.2 profit for 4 months of storage. So at current bin prices you are looking at 12.5 year pay back at $2.50 per bushel. Not calculating basis improvement, harvest efficiency, options for more markets, and moisture shrink at coop levels and drying charges. | |
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Why do coops have such bad basis?
