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| Lol, vail, usually your numbers are solid but I think you’re WAY off. For me, 12.5 bags is 300,000 bushels stored for up to one year (but usually much less) and my all in cost is $0.12/bushel or $36,000.
This includes:
1. Depreciation/repairs/insurance/fuel on equipment to put the grain in the bag
2. Bag cost itself
3. Depreciation/repairs/insurance/fuel on equipment to take grain out of the bag
4. Labor for all of the above
A 60K bin is going to cost 3 times that anyway plus you get to pay taxes on it every year plus you have an in and out cost on the bin (labor, auger wear and tear, electricity or diesel, etc) plus you have a lot higher insurance cost on the bin and augers and so on.
I would say your 60,000 bushel bin has around $0.05/bu of depreciation per year plus $0.02 in and $0.02 out plus $0.015 of labor plus taxes and insurance and I have no idea on those but I’m thinking you’ve got to have $0.12 per year into those bins. If you turn the bin several times per year your per turn cost is lower but it still exists. Then you have to haul to the bin and away from the bin rather than just hauling away from a bag. With a bag you avoid the most expensive trucking charge of the year and your all in bin cost is pretty similar to your all in bag cost.
Edited by dpilot83 11/17/2019 23:52
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Bagging Corn Vs Buliding Grain Bins
