The long protracted harvest that we had this past year has given us much to think about in terms of grain storage.
For many people the grain drying systems were the limiting factor in harvest progress. Additional acres may have been added to the operation or new bins built without adding to the drying capacity. This became a risk management challenge in several ways.
First, in the ability to get the crop harvested and out of the field. The risk of leaving the crop in the field and taking the chance of losing yield to lodging or ear drop were in the forefront of our concerns. The second risk was in the ability to get the grain dry enough to store and still maintain grain quality.
This clearly stressed our profitability with more fuel used than in recent memory.
Now that we have the grain in the bin and we still feel tired and weary from the long harvest it is tempting to think our risks are well managed. Now we must remain vigilant on monitoring the grain quality in the bin.
One of the best practices is to “pull the centers” out of the bin. This is done by removing the first load from the center of the bin. When filling the bin the “fines” or foreign matter tend to settle in the center column of the bin. This area tends to attract moisture and restricts air movement.
If a bin of grain is to go out of condition, many times this is where the spoilage will start. So by removing this portion of grain, one can allow for greater air movement and remove much of the risk of a “hot spot” developing that can cause more grain damage.
Taking probed samples to monitor grain temperature and moisture levels can help one manage the risk of extensive grain damage. If one finds a bin that is starting to lose quality, it is imperative that the grain be removed or turned if the grain is to remain in storage. This may involve moving the grain to another bin to mix and aerate the grain or running it back through the dryer another time.
None of this is simple or easy, yet if grain is spoiled or has a sour odor it will be severely discounted in price when one tries to sell it on the market.
The task of storing grain and maintaining quality is just one more example of how risk management is more than just buying crop insurance or marketing grain. It is a task that must be part of the management of the grain production operation 365 days a year, not just a few days early in the season.
I was visiting with my friend the other night on the telephone and he was telling be about his marketing plans and how the bids for July delivery were much stronger than the spot bids. He mentioned that it didn’t cost him anything to store the grain in his bins and that waiting to make sales in July would yield huge dividends.
I paused and tried to remain calm, before I went into my speech about the cost of storage and that “carries” in the market cannot be captured until the grain is sold. When I was finished, I realized that my friend was silent on the other end of the line. After what seemed like a long time, he said “That was just more than I wanted to hear tonight, sounds like another one of your grain angles!”
Grain Angles is written by Tom Neher, AgStar Financial Services vice president of agribusiness and grain specialist from Rochester, Minn.
