Similar to any other business owner, farmers also need to make several decisions to optimize their profits. The agricultural revenue depends on multiple factors such as crop selection, market prices, storage, and more. While climate factor is beyond control, farmers need to invest in agricultural equipment and ferritization to maximize the produce and prevent loss. Besides all these decisions, planning for grain storage is also a critical factor. The two typical ways of storing grains include- commercial storage and on-farm grain bins. Often small farmers rely on storing the produce in a bulk handling facility. Bulk grain handling companies have long dominated the grain storage and distribution sector. However, it is not always the best option.
Why On-Farm Grain Storage?
When it comes to grain storage, you should wait till the last minute. It’s important to think in advance about where you plan to take the grains and store them before selling them. A proper grain storage solution prepares you for unanticipated weather and prevents deterioration. Most small-scale producers rely on commercial storage services to keep their grains safe. But to maximize your profit, it’s important to consider a few things when choosing between bulk storage and on-farm grain storage. It's important to consider when you want to sell the grains, how much space you have for on-farm grain bins, the cost comparison of both options, long-term cost benefits, and so on. Most farmers are switching to on-farm grain bins to reap the benefit of price increases in the future. There is an initial investment involved in installing on-farm grain bins and dryers, but the long-term benefits are way better than the initial cost. Here are some benefits of installing on-farm grain bins:
- Make More Money
On-farm crop storage enables you to sell grain at the highest prices throughout the year. Profit maximization is the best feature of on-farm grain storage benefits. The goal of properly storing grain is to prevent it from rotting and reduce the risk of it going to waste. But when farmers rely on commercial facilities, they are forced to sell grains when market prices are low due to high supply. Independent farmers can overcome these market hurdles by using on-farm grain storage bins. On-farm grain bins allow farmers to dry and store their surplus until the market is more viable for selling – a method that can help them stabilize their revenue. Farmers may be assured that their grain is safe and well-preserved as they wait for prices to rise.
- Lower Labor Costs
The traditional harvest process involves using grain augers to transport grains from the harvester to the truck for transport. Many pieces of equipment and several laborers are used throughout the grain production and storage process. From the truck, augers are again needed to transport the grain into the grain bins for drying and storage. On-farm grain bins can significantly reduce the number of laborers needed for transportation. A system that uses bucket elevators or chain loops can save harvest costs. A well-designed grain receiving system can also help you boost receiving speed, as well as maintain grain quality during the receiving and storage processes.
- Transportation Efficiency
It means that on-farm grain storage provides multiple monetary benefits. Besides providing sales flexibility and saving laborer costs, it also helps to offset the high cost of freight during harvest. During harvest, the demand for freight skyrockets, and so does the price. Holding grain on-farm after harvest rather than immediately transferring it allows farmers to wait for freight rates to fall and send grain straight to selling locations. It also eliminates the stress of waiting for trucks to load and unload.
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