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Post by JoshuaGA on Jan 30, 2012 19:38:28 GMT -5
Have our corn at one place in Tifton. Hauled in and 3 months free storage, but they pay board price only. Nother local place csgrain.com/ is currently paying a +.80 basis on top of board price, you pay hauling, I don't know about storage fees, ethanol plant would be in cents of their price. I'm no expert on it, but it appears as if I could pay for a bin relatively quickly on the price difference. What am I missing. |
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Post by acfarmer on Jan 30, 2012 22:38:18 GMT -5
You are missing nothing. Local corn processor pays more than the local elevator. Usually 20 cents. I put some of that difference in my cash flow of the bin I built. Go check with your ASCS office for a low interest loan through commodity credit for a bin. Quit shitting and get off the pot and make it happen. 5 years from now when its paid for you will be thinking why didnt you do it sooner.
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Post by Dave-ECIA on Jan 31, 2012 11:14:58 GMT -5
Agree with ACK. my figures tell me it costs 27 cents plus operating costs per year for the first 7 years to own a bin. After that, its paid for, so just operating costs. On a 10 year average, the carry from October to April is a tick over 50 cents.
Build it and don't look back. Gives you more marketing options, and the buyers don't have your grain "locked down". Make them bid to get those doors open.
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Post by iadave on Jan 31, 2012 19:00:32 GMT -5
Build the bin. Our local called today and wanted corn. They were roughly 50 cents under our local ethanol plant and 65 cents under a local rail terminal. The extra freight is 4 cent to the plant and 9 cents to the terminal. If you figure in basis gains it is common here to have a 6 month payback.
When I rented Dad's ground I started building bins on his ground. Every one I built he said I didn't need. None of them owed me anything after 6 months. Before the last one I had used commercial storage for my overflow because a little came from here and little from there. The last year they made over $1 bu off me and said it wasn't enough. If the bin is set up right figure $.05 bu electric and about $100 a year for maintenance. Blow the bucks and get a cetrifugal fan and at least 8 inch pull outs. We figure we will save enough gas with the 8s over the 6s to pay for them. Not to mention less plugging and 1/2 the load time.
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Post by Dave-ECIA on Jan 31, 2012 19:49:32 GMT -5
Agreed on the centrifugal fan, but for a different reason.
I hate those loud, screaming axial flow fans.
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Post by kwestfarms on Jan 31, 2012 20:03:42 GMT -5
Neighbor across the road built a bin couple of years ago and aimed the " loud , screaming axial flow fan " right at our house !!!! He only lasted 5 years........but of course the bin is still there !!! John
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Post by iadave on Jan 31, 2012 20:10:48 GMT -5
Good point on the noise. The last one I built has a 15 hp centrifugal pointed toward my house.
I don't hear it but I do hear the 3hp axial on the other side of it.
And since I have stuck my nose in your business and am spending your money, spend the money on the powersweep. It is a lot less work and they turn slower so it is less dusty.
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Post by iadave on Jan 31, 2012 20:26:01 GMT -5
Kwestfarms. I had a neighbor with the bin fans across his drive from the house. While I was hauling for him I took over 2 -4ftx4ft sheets of plywood and 3 steel posts. Painted them white and stood them up at an angle about 2ft from the fans. Can't hardly hear them in the yard now.
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