|
| A lot of good points have been brought up so far, a few more things to consider
1) local taxes on new bins in central Il can be $ not sure about your location
2) insurance on them not cheap
3) check your local basis and carry, other peoples don’t matter
4) trucking, if u have nothing now, and build facility in 1 spot you have to truck it in and then haul it out
Building bins is long term investment and your market could change, ours did
Local feed mill was growing slowly, didn’t have a dryer, after watching there early September bid being 50centsto a 1$ higher than October we bought a dryer. Paid for it yr 1, made a profit yr 2, then they put in there own making that asset worth less. They also had big carry into the summer with limited storage so we built bins, then they added over a million in storage and now it seems there fall and December bid is almost the best. All this happened over last 10 yrs.
All that being said, If you have family owned secure land for 30yrs, I would have a full system tile job on every acre before I thought about a grain bin, you write it off taxes, don’t pay taxes or insurance on it every yr | |
|
How important is grain storage for a farm? Payback?
