Farmers will be drying and storing a majority of their production this year with low grain prices and a late maturing, but record crop. Iowa State University Farm Financial Specialist Steven Johnson says farmers have built a tremendous amount of on-farm storage the last few years and will likely tuck away as much of the crop as they can.
So Johnson says elevators may have to obtain ownership of that last 15 to 30-percent of the crop to enable them to dry and store it. That will require farmers to look at price later or minimum price contracts. He says ISU has calculators to determine the best marketing strategy.
The spread sheets help determine the net revenue after drying and storage under various scenarios . They can be downloaded off the ISU website.