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Alton, Ia | If you are going to build a bin and market like you have in the past, hauling into same buyer, etc., you probably have better places to invest.
Having bins gives you freedom to market when it's best for you. This does require work, most of which is mental luckily. You need to be open to other end users. You need to learn grain marketing, how the basis moves seasonally, and with/against futures changes, and be ready to lock one side or the other in when it's in the upper percentiles of your historical patterns. Hauling into the same site just 4-6 months later than normal will not maximize your investment.
If this isn't your cup of tea, there are services out there who can do it also.
Obviously if you own trucks, that helps, but there are others who do, who may do it cheaper than what you can, or what you could make doing something else.
Bins are a tool Just like a hammer, they can lead to undesirable outcomes, or be damn handy.
You also didn't mention drying. We dry for about 1/3 what is charged. That is nuts, but it's the numbers we have. Last 3 years, haven't dried a kernel though, so that does make payback tougher. | |
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Help me with the economics of a bin.
