News & Publications
March 6, 2024 |
Are you still storing corn?
Corn and soybean farmers regularly face the pivotal decision of whether to sell their grain immediately or store it in anticipation of better market conditions. This decision is especially challenging this year as we are coming off three great years and now must adapt to a much less friendly grain market. The key to this decision lies in evaluating the cost of storing grain against the potential for better prices.
The cost of storage can significantly impact your bottom line especially when facing the combination of higher interest rates and lower prices. These costs include not only the physical expenses associated with storing grain, but also the opportunity cost of capital tied up in grain that could be sold. Now with higher interest rates, it can be very costly to simply “store and ignore.”
