East central Iowa, Camanche, Iowa | The market has to reward you for storing your crop. I figure $.03-.04/month expense for storage. That includes shrink,depreciation/maintenance/electricity on bin and interest cost. I might be a little high as the bin is paid for and it I only run the fan once a month during the winter. I always move my corn by May as the cost to keep in condition rises dramatically. As the other comments are suggesting there are other tools that can allow you to store your crop till March and reward yourself for the extra effort. I would favor those tools rather than just forward contracting as you have to get at least $.12/bu more in March just to break even.
I am a big proponent of making your money work for you. The crop sitting in your bin is your money not doing anything for you. As farmers we understand the efficiencies of fertilizer and machinery etc. but many of us do not understand the efficiencies of keeping you dollars moving.
JMHO,
Pete Hinrichsen |
March 2011 Corn $4.76
