Near Intersection of I-35 & I-90 Southern Mn. | Earlier this week I filled a 3000 bushel contract at the local elevator. Since I have a straight truck I needed 5 loads. The moisture varied from 13.14 to 15.27% which seems somewhat surprising since it all came out of the same bin, one load after another.
Here's how the moisture was handled. Every load is figured separately. The selling weight on the loads above 15% had a shrink factor applied. Those loads have a drying charge assigned to them even though the elevator doesn't even have a dryer since it is all ground for hog feed. There is no "bonus" on the loads that were extra dry.
Had I been able to bring those 3000 bushel all in one load there would have been no shrink or drying charge since the average was around 14.5%. This amounted to some $22 which is around $.007/ bushel. Not much really.
Another local elevator would have handled this differently. I'm curious if any other parts of the country do it their way.
At that elevator when you haul in a group of loads to fill a contract, the loads are put into two groups as far as moisture is concerned. If a load is below 15.5%, it is put into what is called the "low group". Any loads above 15.5% are put in the "high group".
If the average of the low group is 15% or less, no discount is applied on those loads. Any loads above 15.5% are discounted individually.
This means that if your loads hover around 15% and average 15% or less there is no discount. It is as if those loads were one large load. In my recent delivery, I wouldn't have been reduced the $22. So why didn't I sell there? The first place had a higher price.
I suspect the procedure used at the elevator where I sold is the most common arrangement. |
How does your elevator handle moisture discounts
