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Lapeer Co. MI | On our farm I rent storage for all my grain @ $0.14/bu (2 10k bu bins with a 1,000 bu/hr leg and a 1,000 bu overhead). Our cost of drying is usually figured just off of probane used/bushel and any money spent on repairs.
When I started renting my own ground storage was my #1 priority, mainly because of hauling time to elevators, basis, and ability to control your cash flow. Personally, I think it is easy to justify storage from those three points. It is extremely handy to structure my marketing plan according to loan and input payments instead of selling everything at harvest.
I understand your point of becoming passive in your marketing if you have storage, but it is nice to have an option of being active or passive. It allows you to play both sides of the fence depending on the year.
(This post does make me realize that I should do some more figuring on exactly what our home farm bins cost/bushel) | |
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On farm storage cost and ROI
