Dave a Grain bin will pay for itself in several ways.
1) Speeding up harvest. You can harvest when your ready and not worry about an elevator taking delivery. 2) Even just a fan will allow you to air dry corn that is under 18%. Thus saving drying charges. Drying charges and shrinkage are MAJOR profit centers for grain elevators. They always charge more than the dry cost and shrink the weight more than it actually shrinks during drying does. They make money on both ends of the equation. I have not shipped wet corn in over 30 years. I figure just doing that alone will gain you $.10-15 per bushel year end and year out. 3) The ability to market your corn rather than just dump it at harvest. There is just about always a bonus to selling after the harvest glut of corn. 4) You can match sales to expenses over a wider time range. You a tax guy so you well understand the advantages of deciding when the sell rather than just having to take what you can get. 5) You can widen your market area. I do not know your exact local market but usually there is advantages to shipping in semi load lots to the same merchants your local elevator is shipping grain to. IRC you say he ships little to non on rail. So he is depending on trucking the grain too. 6) Deprecation!!! A bin is a piece of equipment so it has a deprecated life span. You can do your tax voodoo to maximize the advantage.
With interest rates at low levels the cost of a bin would easily be less than the expense of a delayed harvest and the poor local marketing opportunities you get by not being able to take advantage of market trends. Very rarely does the local market basis not exceed the hauling cost to a more major market.
Example here today. Local market price, $3.19, River market 70 miles away, $3.40. Hauling cost local $.14 to the river $.30. So you pay 16 cents more to get 21 cents more for the product. Also the dockages are usually less at the river market.
Another example: Some late harvested corn here has cob rot. So there is some damaged kernels. We hauled a load from a neighbor to the local market, 19% damage and high dockage cost. Load taken to the River market nothing done to the corn other than drove another 70 miles, Damage 6%. So he got more money plus 13% less in dockage. 1000 bushel load. 13% equals 130 bushels at $3.25= $455 Plus another nickel on the entire load, 1000 less 6% dock by weight, 940 bushel x $.05= $47. $455+$47= $502 more money on one load of corn. Moisture dockage will yield similar numbers.
The ability to market to a wider area is a major advantage. We sell less than 5-10% to the local markets. There just about always is a money advantage to going to the river markets.
Also if your going to look at a bin of any size make sure you have at least an eight inch unloading auger. This way you can load a semi in 30-45 minutes. Even if you buy a used bin with a smaller unloading auger in it replace it with a larger one. Truckers are not going to want to wait around on a six inch auger to load a truck in an hour. We have ten inch unloading augers and 13 inch transport augers. A semi is loaded in under 20 minutes.
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Today's Featured Article - A Lifetime of Farm Machinery - by Joe Michaels. I am a mechanical engineer by profession, specializing in powerplant work. I worked as a machinist and engine erector, with time spent overseas. I have always had a love for machinery, and an appreciation for farming and farm machinery. I was born and raised in Brooklyn, New York. Not a place one would associate with farms or farm machinery. I credit my parents for instilling a lot of good values, a respect for learning, a knowledge of various skills and a little knowledge of farming in me, amo
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