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Leesburg, Ohio | No big argument with your cost of money...maybe a bit high, but ok. Handling costs maybe a couple pennies.
What I would point out:
Cost of trucking is not much different. Have to haul it either in the fall, or later. Miles from the farm to the terminal are the same either way, whether from the field in the fall, or from the bins later on.
By having our own storage and dryer on the farm, we avoid hundreds of lost hours on the road and sitting in line during harvest when time is most valuable...those hours are far less costly in the off season. We also avoid outrageous shrink and drying charges. Actual shrink is about half of what the terminals figure, drying is about 1/4 of terminal price.
It gives us the opportunity to capture carry that can be 20-30 cents most years.
Also gives us the opportunity to go from a -30 basis to a plus 20.
So we are looking at easily almost a $1 per bushel advantage at times, plus the timeliness advantage during harvest.
Shrink and drying charges add up quickly, and that big negative harvest basis doubles the cost of harvest delivery. | |
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Rolling HTA’s at elevator for dec 21 contract?
