Farm Progress is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Serving: IN

Farmers Find Home for Remaining Corn

Farmers Find Home for Remaining Corn
Some farmers opt to build grain bin in a hurry to finish harvest 2014.

If you're not finished harvesting, hopefully you will be soon. More reports of farmers finishing up are coming in.

One reason corn harvest became stung out at the end was because there was nowhere to go with the corn. Major elevators were so full that even after dumping outside, in a place they typically put a pile of corn when needed, they had to wait for unit trains to take out corn before they could receive more corn.

Often, they would refill the new empty space within a couple days and shut down to wait for another train.

No room at the inn! The last of the corn harvest drag out as farmers searched for places to put the corn.

We spied one grain bin going up a few days ago in north-central Indiana. With corn still standing in fields around it, it's a likely bet that it was meant to be used yet this season.

Related: 10 Ways To Dry Corn More Efficiently

Another farmer in central Indiana bought a grain bin fewer than two weeks ago. He hired a crew to erect it so he could fill it as he finished harvest. He too was caught waiting on an elevator to have space, then waited on the snow to disappear so he could get back to harvest.

One reason he decided to go ahead with the bin purchase project was the gap between current corn price and corn price for delivery next summer. He was able to contract corn for delivery next summer at roughly dollar a bushel higher when he decided to build the bin.

If his only option was selling to the elevator out of the field, without the ibn, he figured he would lose a dollar per bushel. He could cover 80% of the total cost of the bin by buying it now and storing this crop, to gain the dollar per bushel extra.

That's an extremely high rate of return and short period to pay back an investment. Those opportunities don't come along very often, and require staying up on markets, plus having the willingness to act when an opportunity presents itself.

Proper grain handling and storage can help you put more corn in the bin and more money in your pocket. Learn the best Grain Handling and Storage Tips in our new free report.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish