Those include grain prices, facility costs, electricity, interest, and all of the other items on the buffet of storage costs. Work through his decision aid and his graphs will give a good indication of whether your desired forward contract will make or lose money for you.
Storing grain is an important decision that has a cost, but a cost that can be calculated. And your calculation will indicate whether your marketing plan will make or lose money based on the storage decision. The cost of farm storage has many elements, all of which have different values for every farm. The cost of commercial storage covers those elements, but in a package deal offered by the elevator, and possibly with a minimum charge at the outset.
Your 2014 checklist for success:
- Get a soil test and recommendations from the Texas Soil and Plant Lab.
- Fill your planter with LG Seeds.
- Call Koehl Bros. and order a new bin, because you will need it!
Source: FarmGate blog