New grain bins

NEKS · Mar 14, 2011

Thinking about putting up a new grain bin. They are expensive I think. I know it has to do on how well you market grain. Was just wonder how long it took most of you to pay for one. Thanks

NY 986 · Mar 14, 2011

The past few years it paid to not take the pre-harvest contract price and wait. So it can pay for itself in a year or two depending how much it contributes to your overall capacity.
In more traditional markets of the past the payback would be over several years.

Bob Bancroft · Mar 14, 2011

I can't give you the number you're looking for. Like so many issues discussed here location is a major factor.
I have bins to facilitate harvest as much as for any other reason. The damp climate here means the need for drying, which I do in-bin. Plus we don't have the extensive "elevator" system prevalent in real grain country. The last three years I have had a little surplus, and my drying bin has seen 23 seasons, so there's a new drying bin here, purchased last Dec. and it will be going up right away.
Right now you're going to pay a premium price because of so much demand, and availability will be an issue.
Best of luck.

thurlow · Mar 14, 2011

Put up 2 small ones (3750 bu each) the year the grain market went crazy in the 70s; paid for 'em that year. (Dang crs......can't remember the year; '73???) Put soybeans in 'em off and on for the next couple of decades.......depending on the market; never really hit it BIG again, but made a little money each time. Carefully monitored the moisture on what went in and never even ran the fans. Last few years I was farming, only stored shelled corn to be ground to feed some calves.

flying belgian · Mar 14, 2011

Around here in so. central Mn. we can store grain at the local elevator for 4 cents per bushel per month. So if I built my own bin I would be saving 4 cents per bushel per month and it would take a mighty long time to recoup at that rate. But you have to factor in the time saved not sitting in line at elevator in fall. Find out what local storage at your elevator is, find out what new bin would cost, determine if you can get crop out in a timely manner by sitting hours in line at elevator and do the math.

1936 · Mar 14, 2011

Sounds great--lesson to the ones who grain bins go out of condition a year back. That 4 cent is looking better.

Ray · Mar 14, 2011

I like control of my own grain.The elevator can go belly up and you loose it all.Even if there
insured it could take years to get your money back.

Anonymous-0 · Mar 14, 2011

here in NW ohio the elevators all charge 15-20 cents dump charge plus 4 cent/mo so payback would be faster for us

JMS/.MN · Mar 14, 2011

Downside of paying 4 cents local storage...first of all, too high- plus the dump charge of a dime...and you HAVE to sell there, or pay another dime to load out and haul somewhere else. Why do FT farmers build bins? $$$$$ advantage, sell when and to who, when you want to. Marketing is the biggest factor in success.

OliverGuy · Mar 15, 2011

You can get a really low fixed interest rate gov't loan for a bin through the FSA. 3% or less if I remember right.

New grain bins

NEKS

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NY 986

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Bob Bancroft

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thurlow

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flying belgian

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1936

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Ray

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Anonymous-0

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JMS/.MN

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OliverGuy

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