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Southwestern Ontario | That drying cost is very expensive sounding. But up here in Canada we've got the carbon tax that the elevators pass on that really puts our drying charges through the roof. They then have a markup on that cost since we pay a tax on this tax. For comparison, we hauled a lot of 25% corn off the field this year and if we went straight to town it would of been 0.61 per bushel or about 0.06 per point. Our drying fuel cost including the same carbon tax was exactly half of that cost. So if you're getting charged 0.16 I agree with the other posters that is insane. As other posters said interest and depreciation will be added onto my figures at home and will probably take a lot of the savings away. But for us the convenience alone is so worth it. And as another poster mentioned if you have carry in the market is an important consideration. Our market was inverted the year before and even this year so bins might not be directly paying this year, but I know if I'm going to pay storage charges I'd rather it go towards my bins instead of the local elevator.
The real payback to us is the control we have on combining. We don't have trucks and I always found it stressful to be in a hurry to cram as many wagons into town as I could. The local elevator will generally stay open for guys to a certain extent but it still makes you in a rush. I was also waiting in line with 15 other sets of wagons so it didn't take long for the combine to start sitting in the field idling. We already had bins and a dryer so our investment was not as huge as starting from scratch, as all we did was add a bigger wet bin and re-do the burner. We set it up so we don't even really have to babysit it. Just check on it every once in a while after we shut down for the night. So now when the elevator quits receiving we can choose to keep going or pack it in knowing we can start any time the next morning and not wait on anyone. But just the huge convenience added to the operation was worth any drying cost you want to add in and it's very hard to put a price on what convenience is worth to everyone.
Edited by ONfarmer 2/15/2024 14:15
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Corn drying costs
