Posted 1/23/2010 14:36 (#1037259 - in reply to #1037125) Subject: RE: Why buy a grain bin
Might be a here vs there thing. We have around 350,000 on farm storage. This past fall we hauled 150,000 to town unpriced (yup, we blew our expected yield swag). Options were to shut combine down for a couple days and have everybody haul to town. Or pay .06 to haul to town......we opted for the 6 cents.......then opted to sell instead of pay storage. It was 20 cents cash more then than now.......but........
The spread to july was around 35 cents, basis has stayed the same roughly so no money to be made there, "this year".
Of that 35 cents over 7 months of storage i'd swag a guess that interest would take about 15 cents off the 35.....thats if ya sold HTA. so 20 cents to the better for a bin.
A 16 ring 60 wide bin will cost ya around 1.15 a bushel erected without any fill to it, maybe another 30 cents on top for a fill (depends)......gubernet loan is 3% for 7 years, so about 4 cents a year for the loan. So roughly 7 years to pay for itself. This is swag math.....there are years where a guy can store till the cash price go way down, but there are years where its the opposite......
Dunno what price to put not hauling to town during harvest, for us, and IMO, Its about ten dollars a bushel.......I hate trucks waiting in town, shutting harvest down waiting for trucks chaps my hide! ;^)