|
| I forward contracted a good portion of my crop for fall delivery. I have done it this way for a number of years as I don't have much on-farm storage. I plant hybrids accordingly and usually haul in corn 16-18% This year none of my hybrids have dried down below 20%. I am being charged .08 cents per point of moisture over 15.5 . with NO SHRINK at an E-plant. Having 0 shrink brings it comparable to elevator drying @ .0375 + 1.5% shrink I think? The larger front end cost per point at e-plant essentialy has a shrink factor built into it . Either way- i have wet corn and feel like i am taking a beating. To make me feel better or worse- could some of you with on farm drying tell me what portion of the .08 cents PER POINT i am giving to the E-plant and what portion of it is an expense that I would have drying it on the farm? lets use $3.50 corn to apply the shrink and 20% as the hauled in moisture.
Also- as dumb as this sounds- I have a hard time wrapping my my head around "shrink" They say there is 1.18% true shrink on drying. I have 2 Scenarios with a fixed number of bushels contracted. One- i am able to dry on farm, then fulfill my contracts. Two- I haul out of the field to fullfill my contracts (like i am doing now). In scenario one- I bring my grain in at contract specs and am not docked on any of my bushels and i receive full value of all contracts, but I have an LP/Electicity bill to pay out of that contract. Where is the expense of "shrink" accounted for in scenario 1? In scenario two- I settle my contracts and have large discounts for drying and shrink. In scenario two i would presumably have additional bushels to sell after contract is fulfilled due to fulfilling original contract obligations partially with water correct?
Another dumb question- Would you rather harvest corn at 20% that dried down yields 215 bu. an acre? or harvest 200 bu. corn at 15% out of the field? Maybe i shouldnt be farming if I have to ask that question, but is "dry yield" achieved dollar wise after all drying charges taken into account or before? Seems like people quote their yields in a variety of ways. Sorry if i am not sounding clear in my questions.
Is the general lesson learned from this experience to buy drying equipment?
Edited by Lotts_Valley 10/30/2017 07:28
| |
|
CORN DRYING
