Grain Storage: Crunch the Numbers

The Land

Type: Article
Knowledge level: Advanced

Farm Table says:

The installation of grain storage is a costly investment, this article is worth a quick read to ensure that you get it right from the start

What is the problem?

To develop a prosperous marketing program to farmers who manage on-farm grain storages, planning in the pre-establishment and/or the development process and monitoring the operation must be accorded. This article showed off the simple ways to follow based on a grain storage consultant’s perception.

What did the research involve?

Chris Warrick, a Grains Research and Development Corporation (GRDC) head, entailed pieces of information about maximizing the value of every farmer’s grain by initially starting on the condition of its on-farm storage.

What were the key findings?

● Warrick notified farmers that grain storage is a big commitment that necessitates long-term investment and a mathematical calculation to determine if it worked for them. Subsequently, if the calculated return is favorable, an investment can be carried out positively.

● Moreover, he apprised that it is the businesses’ distinctive features that leverage on-farm storage in several ways. As a corollary, a cost-benefit analysis for their operation must be practiced.

● By this means, the expected returns with the grain storage and expected returns from other business must be taken into careful comparison. Moreover, taking account of the cheapest on-farm grain storage rather than remunerating a bulk handler to store it is essential. The cheapest option is a storage that can certainly achieve the planned benefits.

● He added that value can be added if farmers create specified quality segregations unavailable in the bulk system and managing and maintaining a top-quality storage. Farmers should look at various forms of storage on furnishing its creativity and efficiency.

● In terms of marketing grain, consumers always sought the most well-made grain storage with the features of pest-free, high-quality, and undelayed services. To achieve these, planning the on-farm grain storage ahead is always vital and rewarding.

Final comment

In totality, the overall productivity and profitability of grain marketing largely hinge on the design and management of its storage. Thus, a careful consideration must be apprehended to every grain storage to accumulate gratifying results.

2014 - Australia - The Land
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