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Dayton, IA | I see several responses talking about carry in the market paying for a bin. They don’t address the issue of the actual grain in the bin accumulating interest until it’s sold. You can’t use the value of the grain in the bin until you get the grain delivered and get a check to stop interest on a loan or loan the money to someone else to earn interest or purchase a different profit earning asset. 7% interest on $4.50 corn is 2.5 cents per month. The market will offer 3-5 cents carry, so more than cover the interest, but only a small portion of that carry will be available as cash for a bin payment. Most of the carry is eaten up because you haven’t converted your grain to cash until the bin is empty. Am I thinking correctly? | |
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Help me with the economics of a bin.
