Rather than marketing grain right off the combine while basis levels are wide, grain bin manufacturers say they continue to see strong interest from farmers in the Corn Belt in storing more grain on-farm.
Whether for marketing or logistical reasons, there are a combination of factors driving the trend, says Jeff Cravens of GSI in the video below, filmed at the National Farm Machinery Show in Louisville.
“You have historical data from a marketing aspect that carries in the market, both market carry and basis carry give you a total carry over your winter months of storage typically averaging in the 40 cents a bushel range over the last 10 years, which equates to usually a four to five year ROI (return-on-investment) on storage on-farm,” he explains.
More coverage of the 2015 National Farm Machinery Show
Cravens discusses the reasons why producers are investing in more storage and his perspective on determining the right amount of storage for a farm:
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