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what $ does it take per point to dry corn on farm
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Gerald J.
Posted 8/24/2010 14:13 (#1330267 - in reply to #1330236)
Subject: RE: EH?



7 bucks a KWH, how about 7 to 14 CENTS per KWH.

37.97246 KWH per acre times what gives $3.11? 7 cents with 17% sales tax?

HOIC last year charged 3.9 cents per point for drying, and 1.4% shrink. For $4 corn the shrink comes to 5.6 cents per bushel per point. total 9.5 cents per point per bushel. 9 points drying makes 85.5 cents per bushel, $171 per acre for 200 bushel corn.

$30 an acre on farm seems to neglect shrink, labor, and the machinery cost, not to neglect augers and such, all of which are significant costs that should be charged against the corn dried over the lifetime of the equipment. For $4 corn the on farm shrink can't be less than 1.18%, 4.72 cents per bushel, 42.5 cents for 9 points, and $84.96 for 200 bushels. Then there's double handling on the farm, but with adequate storage there's the less tangible but real benefits of much wider marketing opportunities.

Gerald J.
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