Add Farm Value with Grain Systems

Teresa Olson
By Teresa Olson July 10, 2017 10:36

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Capital improvements might be difficult to get your head around during times of low commodity prices and low margins, but there are four main areas of consideration when it comes to the added value potential to your operations with grain systems.  Those four areas of value are:

  1. Capture more for stored grain.
  2. Save drying and storage dollars.
  3. Grain overall efficiency.
  4. Raise overall farm value.

Ross Albert, writing for Prairie Farmer, encourages landowners and tenants to evaluate their current situation to see if there is room for improvement, considering the annual return on their investment can be an attractive 30%.

 

But putting up a grain system takes a lot of smart planning in order to avoid some potential points of congestion:

  • Truck’s inability to maneuver around storage equipment.
  • Mismatch of harvesting, trucking, and unloading systems.
  • Distance from the field to the storage site.
  • Auger movement and positioning between bins.
  • Lack of drying capacity or storage for high-moisture grain.
  • Lack of preventive maintenance.
  • Lack of adequate all-weather roads and driveways
  • Lack of conveniences for weighing trucks across scales.
  • Inadequate temporary storage ahead of cleaner or dryer.

Remembering various factors when you’re planning can help alleviate or prevent such bottlenecks.  For instance, keep in mind the main components of site selection:  accessability, electricity, and drainage.  Bin selection is also important:  the largest bin on the farm should generally not exceed 50% of the largest crop harvested, and a minimum number of bins is probably one per crop per season.  Drying systems, bin layout and spacing, and number of sites are other factors to think about.

Rather than borrowing large sums of money to construct a total system right away, most producers want to expand their facilities over time as capital becomes available.  This is where planning becomes even more essential.  Do your homework as it’s easier to change things on paper than after your construction begins.  How valuable do you think your grain system is?  Would you expand or change it in any way?  Let us know in the comments.

-Terry Olson, Titan Outlet Store Team

Resources:

http://www.prairiefarmer.com/land-management/grain-system-equals-added-farm-value

http://extension.missouri.edu/webster/documents/presentations/2013-07-30_GrainStorageTour/OnFarmGrainStorageConsiderations_BasicsGrainDrying_EquilibriumCharts-KentShannon.pdf

 

Teresa Olson
By Teresa Olson July 10, 2017 10:36
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