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scmn | Sometimes I forget that is the difference of here vs there. Here the ethanol plant wants you to take a semi load, if less than a semi load the price goes up and is close to that of the local feed mill, but the feed mill will deliver for that price and you still have to pick it up from the ethanol plant. We also have free grain bank or spot price corn 0.10 higher than cash bid (seems 0.25 higher is common in other areas of the country). Some feed mills 30 miles away have different attitudes and brag about their dividends but are 10-15% higher cost. I would rather take no dividend than pay 10-15% extra in hopes of a dividend. Our feed mill seems to keep the patrons in mind and is very competitive. I have had several mills try to get my business over the years and all came in $10-20/ton higher.
Every time I think about grinding feed and getting setup for it (additional bulk bins, wiring, etc) I realize there are other areas of the operation that could benefit more. I.e. larger pens, more pens, more concrete, automate more feeders, improved working facilities, etc seem to take precedence. Lately working facilities has been at the top of the list since if it saves minutes while the vet is onsite (while charging by the hour) the returns are pretty favorable. I have been keeping an eye out for good deals on bulk bins and keep leaning toward new when 30 yr old bins are bringing half of new. I can see were coops have $100/ton markup on DDGs and spot price corn 0.25-0.30 over cash price and charge delivery, mix, and grind charges on every ton were it would be extremely favorable to switch, but HERE several neighbors have switched to grinding their own for a few years and later went back to the mill because it was not worth their time. It was not like they were saving $40,000/yr grinding their own. This is for cattle. Hogs in a barn might be a different story since the capital investment is there and you don't easily increase numbers 10-20% without adding a barn. | |
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When to get a feed grinder?
