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| Bin site can vary wildly. Do not have dryer. 4k bu per hr leg. Pit that can hold a semi load. I bought my leg used 130ft tall. Cables, no tower. Hired erection. In it 110k. Bins. 2-3$/bu. If you general contract it, you can save 10%.
Figure it costs me $.16bu for property tax, insurance, electricity and a little maintenance. Bins lifespans are incredibly long relative to other things. Depreciation is hard to put a number on. Pick that yourself.
Upfront cost is a lot. Undeniably. But, it also allows you opportunities that you may not have considered.
With a leg, you will install a reclaim system to the legs to fill a truck. With that, you can fill one bin with wetter corn, and a second with drier as harvest progresses. Blend them off to get much closer to a 15.5% moisture average. Install temp and moisture cables on bean bins. Rather than selling 9% beans you can sell 12% beans.
You can load a semi quickly, it gives you the opportunity to catch truckers on back hauls so that you can take grain to terminal. In northeast Kansas there has been years I pick up $1 from local bids to the bean processing plant in Kansas City. About 120 miles. After trucking I’m still netting 40c on a direct haul. 60c if I can catch a back haul.
You can leverage the terminals against each other and take advantage of quick ship bids when they need to fill barges or trains.
It’s just my take, but there is a lot of profit potential if you look at it creatively. | |
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On farm storage cost and ROI
