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The impacts of Baggers on Local Grain Markets.
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JonSCKs
Posted 10/13/2018 09:05 (#7044136)
Subject: The impacts of Baggers on Local Grain Markets.


A couple of neighbors have bought or are utilizing baggers this year for the first time to store their crops at the edge of a field to be hauled out later.

Is this a game changer?

Consider two operations:  with a bagger you have super high take away capacity vs hauling X miles to the nearest storage facility.  This saves man hours and trucking capacity for larger operations.

I do not know if it's had much of an impact here locally yet.. but if larger operators bagged their production (like some are doing) vs hauled it to the local elevator.. it would have a decided impact:

a) reduced lines and intake at the local elevator
b) more competition for the end users to pick from.. less consolidation of offer's
c) Although I believe you can do a good job with bags.. some of the larger operations who seem to be those who haul the lower quality to be "blended up" with those who take more time doing a good job would probably at some point get an eye opening experience when they hauled to market.  As would buyers.. Dry Good Quality Grain is at "somewhat of" a "premium" right now.. I use that term loosely.. "less of a discount" might be more appropriate..

Consider an operation running 2 or 3 machines a couple grain carts and like 6 semi's.. basically they could park the trucks.. add another combine and speed harvest up.. while spreading the workload of bringing in the crop to after harvest when labor is more plentiful and the markets avoid "gut slot."

I wonder if some of these local elevators who are printing $$$ right now would get squeezed to tighten up gut slot bids..?  I actually think we are seeing some of that now...

Also it would put a premium on quick shipment basis as once in a bag.. the grain is probably gonna stay put for awhile as the bags get destroyed upon cleanup and are considered a "sunk cost."

also consideration to drainage and accessibility would be a concern.. boy howdie.. if you suffered through a deluge at harvest.. like this year.

We would probably be done right now if we could have just moved a little bit quicker.. with a bagger.. although some of that might be underwater also...???

Just thought it was interesting.

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