Extension, Cooperative

 

Date of this Version

1992

Document Type

Article

Comments

This fact sheet is a product of the North Central Ad Hoc Producer Marketing Committee including the following states: Ohio, Wisconsin, Minnesota, Michigan, Illinois, Missouri, North Dakota, South Dakota, Kansas, Iowa, Indiana, Nebraska.

Abstract

Grain marketing decisions are among the toughest the farm owner/operator or manager must make. Grain producers store grain to speculate on receiving higher prices, earn a return above storage costs, or to take advantage of government programs. Prices must increase enough to cover the additional costs, or forward contract prices must exceed current prices by more than the cost of storage in order to justify forward pricing. The gain in prices received can come from both changes in price level and changes in basis.

This research publication discusses all the areas of the cost of grain storage.

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