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North Central Indiana | Really depends on how you want to calculate it. Here since 2020 the only year I wasnt at least net 35 cents better on average sales from storage (December-August) vs harvest (September-November) was 2021 harvest into 2022 marketing. Price was coming down and I sold almost exactly flat throughout the marketing period. So 4 out of 5 years were good years for a return. Let’s say those were all new bins in 2020, we did put one up at $1.64/bushel in 2020 so we’ll use that as a price even though a bigger project could’ve gotten a better deal. I’ve made $1.40 in the good years, operated on cash and could’ve gotten about 3% interest in 2021-2022 on a money market account. That cost at most $.20/bushel. In 5 years I’m up $1.20 on storage that cost $1.64. So figure 3 more years it paid itself off and I get to keep it forever. And you could’ve borrowed the money back then at just under $.03/bushel from the USDA. So actual cost if financed through them would’ve been $1.79/bu so far. That still makes that 3 more years to pay them off number look good. How long will they last? Not sure, we do use a few little bins from the 50s still that have had very little in the way of maintenance. We’ve replaced auger flighting once that I’m aware of on each of them. So if I get 50 years of bin use after paying them off I should come out pretty decent on the investment. Not to mention harvest loss impacts and efficiency gains. | |
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Whats everyone shoot for on grain bins making per bushel?
