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sw363535
Honored Advisor

Harvest progress corn 9/18

Well every year is different..... but this one has a different personality.

 

We will finish up the wet corn pit bushels tomorrow at Guymon, Okla.

It exemplifies many of the issues this year.  

1- we are normally one of the last to get it in since we are on the north end of the list of farmers. this year we are first done.

 most were in that heavy spring snow band that caused delays and planting problems and wrecked the wheat crop.

2- we are very late.  The September heat and dry weather have helped but late is still going to be late---this 4 million bu project begins early Sept and can be over in 10 days some years.  This one will drag on to October.

3- dry corn will drag out past october ----- and for us that means high winds and cold with possible snows-- not good for 

 

All corn harvested so far is irrigated.

 

Yields so far.

217......... early hail ...came out of it with small stand reduction.

114.......... August hail lost all leaves and died..... low test weight  perfect for wet corn pit.

213 bu/ac      early hail at 5 leaf  reduced stand slightly

190...........   same early hail.

210...........  limited water otherwise ok

165...........  August hail took leaves.... spots making 220 where hail not too bad.

 

All at least 10% below 2016 and one at 50% below.

 

Cheapo ------ For us this is part of marketing..... We have this option and normally will contract 10% of our irrigated production to this location..... even though there is a 25 mile one way haul........ and on the late hail fields a 50 mile haul.....

There is no dockage, no handling fee and no storage.  The shrink is old school (1.2% per point, not the 1.4% that elevators claim to be shrink).  It gives us a place for the cows to go earlier off grass.  It gives us a chance to get problems out of the field quickly(like when the bug control technology does not work or the hail kills some plants early.)

If we want to feed our calves we can apply those bushels to their feed bill without a corn sale.  We have a full year to price it or carry it on a basis contract.

The dry corn we store in our bins(40% of Irrigated crop) goes to feedlots after the first of the year with a normal 40+ cent premium over elevators freight included.  We sell 20% to ethanol out of the field on a pre priced contract.... a 20 mile haul one way and usually 25 cents over coop.(This option fits for our rented land owners as well for a little bonus over the elevator.)

The dry land production and excess ends up at the coop elevator located "next door".

Our personal elevator storage (the 40%) is vital, yes for profit, but as much for keeping us running after hours and weekends  or so we never get the trucks locked up in a waiting line somewhere.

 

I think marketing on the farmer side is as much about having a home for your production as it is about pricing.  There are a lot of ways to play the pricing or hedging game or retain ownership, but placing the grain in a position where I don't feel like it went to the salvage yard, and there is someone I enjoy a relationship with is kind of important to me.

Those relationships have value.  At least I think they do ....... it took us many years to establish some of them.

But primarily getting the corn into a position with a 20 cent improvement in price without dockage issues.... is $40+ an acre on irrigated corn....  In these economic times that may be doubling our take home pay.

 

1 Reply
giolucas
Veteran Advisor

Re: Harvest progress corn 9/18

Sw,
Awesome information, thank you.
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