Saturday, July 14, 2012
Bin Management Pays Big Time
One friend in Kentucky just sold corn out of his bin for $8.22 and another friend in Iowa is trying to deliver 160,000 bushels for $8.27. It takes a lot of trucks and a lot of coordination to store, save, unload and deliver that amount of grain. A quick calculation shows we are talking big money in reward.
Grain bin management is something they don't teach in school or ag college. The closest I got was my agricultural engineering classes on grain drying, air flow and mathematical calculations. The real test is right on the farm.
The best way to learn is from a seasoned veteran. There are several on ag talk who have and can store grain for years safely. Actually doing the work side by side an experienced person is the way to learn. Learning at a warehouse is one thing but if I wanted to learn how to increase my income and efficiency by storing grain, I would want to learn from a good farmer who knows.
This farm had 65,000 bushel storage when we bought it. I had never been around grain bins enough to appreciate their use or value. I am learning by the school of hard knocks after $50,000 in repears and too many months of $1000 electric bills. I could have increased our income at least a half million dollars by storing grain longer and selling at these "hammer highs" of $7 plus corn, $16 soybeans and $10 wheat. It takes conviction and fortitude to do that. And it takes knowledge.
I have had a couple of close calls on spoiled grain but nothing like was in the bins when I bought them. They were half full of moldy corn I sold for a pitance to clean them out and get them going. If you are going to grain farm, you need to learn to produce and store the highest grain quality possible. That's the job.
Most don't do it. I know many who don't even own grain bins and sell out of the combine. They cry when they sell corn for $5 and corn goes to $8. I know many who don't even own a corn planter or a corn head! They are stuck with cereals and soybeans in their rotation and some of them do pretty darned good!
Bin managment is paying off big time. It should! We can't consume the October crop in one month, it takes all year!