By Jon Scheve, Superior Feed Ingredients, LLC
With harvest in full swing, many farmers are asking me “which crop should I store if I am limited on space?”
What to store at harvest?
My farm operation has over 100% on-farm storage capacity, and I highly recommend most farmers should as well. Having 100% on-farm storage capacity not only simplifies harvest storage decisions and increases flexibility, but it also allows for more low-risk opportunities to maximize profit potential.
Despite the benefits, many farmers are still resistant to having more storage for a variety of reasons. Those farmers will need to analyze their own basis opportunities, market carry profitability and their operating note interest to determine what is more profitable for them to store at home. Following shows how I like to calculate each one.
Futures values do NOT matter when deciding which crop to store
This runs contrary to what many farmers think.… Continue readingRead More »