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10-04-2016 10:10 AM
sign at elevator say that corn, milo beans will be cash or contract
if you go contract.....you are subject to a "monthly fee" ((sounds like storage to me))
also you are liable for all drops in basis and price chanes
you also loose tittle to grain that day......thus NO ldp or loan
so you are forced to sell when basis is at record wide levels......and no recourse.
is this where, in the pace salsa commerical, we say...."get a rope" ??
10-04-2016 10:58 AM
They pay, period
Even with zero prices appreciation on the board you gain basis and don't have to take the dockage hammering they like to dish out at harvest.
They pay, period
10-04-2016 01:21 PM
At your own bins you are always first in line. Open as long as you want to work, any and every day of the week.
MT, I have other people I know out there and most have no grain storage, also have very little money....They don't get the correlation...
10-04-2016 09:14 PM
mt and hobby...interesting comments.
The state farm management bunch is constantly looking over the numbers of everything, and trying to see "some sort of pattern",
which is a trait of success.
It might be interesting, to prove or disprove that grain bins are a "trait of successful farming".
i can see where they can be a useful tool.....where you need to segregate a product...such as idenity preservation...could be used in
some common things, such as higher protein wheats, etc....etc...
yes, a case can be made to 'wait out" basis, for improvement......but...have you tried to haul old crop in when new crop is comming
in...example there is a 70 cent carry in the wheat market....
i've noticed the amount of on farm storage in this area is down quite a bit....years ago, everyone had bins...today, nobody uses them.
first, management....there is a learning curve in preserving the grain....second, a bit more work to put in bin, rather than haul to
town....then the cost to build the structures....then storage "cost"....from controling insects, to insurance....which needs to be
at market par, or you are loosing.
i think also a point is, many people rent ground, and in these parts, the "share lease" is still popular, thusly the landlords share needs to
go to town.
also, money management......so much easier to haul it there, not worry about it, and when you need money, you just call...
you have a bin...need to load it, haul it in, etc....and the roads/weather might not be your friend.
then, perhaps an argument can be made, that if you are an astute marketer....you could perhaps "overcome", the advantage of
on farm storage.
hey market eye......that might be something to keep your college interns out of the break room, and coffee and doughnuts.....
research to see, if grain bins are "traits of success".
kind of reminds me of what sw said the other day....."chance to buy feedstuff under the cost of production for the next three years".
to be honest....if we were really good business people....we would realize that fact, and capitalize on it.....either feed it yourself,
or, if you are not into that.....sell it to those who are.....
and perhaps, do it with a piece of paper...rather than bins.
here is hoping everyone gets a nice surprise in your bank account in the next couple of days.
10-04-2016 11:03 PM
10-05-2016 04:51 AM
Both have good points - All I will add is that I was at Bunge one day - The manager said there biggest competition was not the River or any other company it was sheet metal .
10-05-2016 05:17 AM
It is very obvious many are in a head long rush to be nothing more than growers, ( pronounced "just the help")
I must have missed the class on the requirement to auger it as many times as you state is necessary.
I'm sure when I'm gone from the farming thing the next guy here will have no use for my Podunk grain system.
With the 150ish year history of my home farm seems only one farmer that has owned this farm ever paid it off. Several went broke. The one that put up grain bins was the one, (the only one) hmmmmm.
Yep they require management, maintenance, and checking. Not everyone is up to or probably in your case capable of the task.
As I'm not a coffee drinker, I have the time.
My time is better spent NOT waiting in line at harvest. No fifty cents a year (equivalent) storage checks going off farm.
Had a neighbor yesterday shut down harvest because of the damage in the grain coming straight from the field. Elevator said don't bring any more of it. No bins to blend the good fields with the crap fields. Young guy with the Same exact philosophy you are displaying, has lectured me in the past on the ills of bins too.
There is one bank here that will not take you as a loan customer if you are a farmer with bins. Said all just let it rot. Yep can happen.
Wish I had another one this year. (I've got them, just not put up).
10-05-2016 08:00 AM
Hobby and I compare notes on this issue often. He is one of the best at managing grain storage. Knowing what to look for when to make adjustments etc.... He does it in the Iowa climate.... Mine is easy, Too dry all the time.....
Hobby handles smaller volumes very well, from an average farm size --(yes he tends to down play that). We are on the other extreme, we are still farm based but handle over 2m bushels a year through our facility. -- ( lets all down play that as well)
I'd say this, It aint easy it takes a little work. And on the management side...... consider this.... Does the elevator help market your grain? Does the Seed man help make your seed choices? If yes then storage may not be for you.
Do you have end users you can market to? Within 100 miles...(today we are sending fresh cut soybeans 250 miles out of our bins.) There are some advantages to size. The end user is picking them up --- net gain in basis and freight 50 cents/bu over local elevator.
We figure to get 50+ cents a year on every bushel that goes through..... and a lot of them are in and out bushels within days or at least a month.----yesterday the local elev. stopped accepting at 2pm....they are moving out wheat to make room for tomorrow....
We don't stop harvesting.... not for an elevator....repaiirs, that is a different story...
For us, Facilitating harvest is the biggest benefit....of storage...if yuou have quite a bit ahead of you.
Hobby's often used comment of a toolbox and "It is a tool" is a great analogy.
Everybody carries a different toolbox.
Financial issues fall into play as well,,,,, lets just say... I stuck my neck out there pretty good, we needed that tool pretty badly.
Hobby carries a pretty big ..... toolbox... and handles them all pretty well... He enjoys this tool and probably has bin parts laying for a field he hasn't farmed yet... Not many see grain marketing with his focus...
10-05-2016 09:05 AM
I`m the last one to critique anyone`s marketing, I`ll be the first to tell you that I am the worst marketer. However there was a thread on the Business page about yr ago, with a link that the best marketers aren`t the most profitable. Marketing is something I don`t worry much about, can`t do much about it, sell when you need the money (which is always ) and just go about being the best farmer that you can.
I see all types and are successful in their own right, one of the bigest of Bigshots made a deal with a elevator and they haul all his grain out of the field for him, 10 of their coop trucks in his field and are loaded by his graincarts he basically loses possession as soon as his carts dump. He`s about at 30,000 acres, expanding more all the time, spread out over 200 miles.
Then there`s Bigshot 10,000 acre farmers that never step foot in a coop, put their grain in a bin and take it to feed mills, ethanol plants, soymeal processers at their convinience.
Some smallshots, sell off the combine and let the chips fall where they may and they are "their own bankers" do alright too. A good farmer can make any plan work
10-05-2016 12:40 PM
We only need two bins. A small one for c-notes and a larger one for 20's. Once they start paying interest again------
A great secret to marketing is contentment. Taking what you get whether it be more or less, and being content with it.
After all you got another crop coming and another one in the near future