Cropping
Quality of grain,
Handling and Storage
Grain storage allows for exibility in your grain marketing program and the proper use of storage can have a positive impact on your overall pro tability. Even if you have grain storage built, there is still other criteria that should be evaluated before storing your grain. First, evaluate your interest cost on the grain inventory.
If you have a loan, the proceeds from the sale of grain can repay that loan, so your interest expense is reduced if the grain is sold at harvest; however, that interest expense remains if the grain is stored. Even if there is no money borrowed, there is still a potential opportunity cost to storing your grain. �e rest of the costs associated with storing grain revolve around conditioning grain and maintaining its quality.
Any time grain is put into storage, growers need to manage the grain properly to keep it from spoiling. Proper management includes drying grain to safe moisture levels and then correctly, cleaning, loading, aerating and monitoring it. �is can be especially challenging in a year like this year with variability in test weights and moisture as the storage life of this stressed corn is typically shorter than normal, thus requires the grower to be more diligent in its drying and storage management.
One of the most signi cant costs related to storing grain is drying grain to safe storage levels and incurring additional fuel and power costs. While storing grain in the short-term may require drying it to a15 % moisture level, storing it until next summer may require drying it to closer to 13 %. With the higher moisture content grain this year; growers are likely to incur greater expenses than typical in this area.
January- February 2017
FARMERS
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