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Frost seeded and general oat update
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Green Acres Guy
Posted 5/15/2023 19:02 (#10230447 - in reply to #10230402)
Subject: RE: Frost seeded and general oat update


Latimer, Iowa (north central)
If we move forward with milling one of the quandaries is how to price the oats purchased from other farmers. Would need to procure at least a million bushels annually in addition to my production to have efficiencies of scale of mill and enough product to be taken seriously by end users. I think farmers will grow oats if the price and yield gave a consistently competitive return with corn? With the new varieties and production methods here in north Iowa, 125 bushel oats seem to be like 200 bushels corn, a realistic goal. Test weight has not been an issue with new varieties and fertilizer. There is enough margin for the miller in oat processing but obviously milling is very expensive to get into and market finished product. The CBOT doesn't trade enough to set an oat price, I am thinking peg it to a percentage at or above an average area corn price to set a price that farmers and miller can both live with? For example, swept out a corn bin today and sold it for 6.82. 6.82 oat price today. Just one idea thinking about? I have worked with PFI in their past oat projects a bit but selling to Grain millers. My goal of a mill is to pay enough for oats that they are a very profitable 3rd crop for our rotation, not necessarily make huge profits milling.

Edit: clarity

Edited by Green Acres Guy 5/15/2023 19:11
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