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West Central MN | In addition to the time value of money, there's opportunity costs. For example, for my farm over the past ten years, investing $200k in more drain tile on highly productive soil fields would have been a much higher ROI than a a couple new big grain bins.
Add in the waste, loss, and reduced quality over time of the grain. Plus the easily unaccountable labor costs of babysitting the dryer, shoveling/sweeping the floor, motors going bad, burned up belts and bearings,... None of it runs for free without electricity and drying fuel.
Doesn't mean they don't exist but haven't known a farmer that could point to the numbers with detailed itemized accurate annual costs of all the above and more line items it actually takes per bushel to own and maintain a grain storage and handling system.
Why isn't the government offering the same low interest long-term loans for a new combine or tractor? "It's in it national interest and strategic." If you believe the government cares about the profitability and balance sheet of a farmer, and sees their ability to store their own grain as a good thing, you're still too trusting and naive after all the evidence to the contrary that has been presented over the past six years.
The last best time to build a bin, shop, or buy a piece of equipment was 2019. The runaway inflation since then by those running the show is evil, purposeful, with intent, and by design. | |
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Help me with the economics of a bin.
