Grain Bagging: Help Yourself Now

We woke up this week to customers calling in saying that DP (delayed pricing) charges at the grain elevators in the Midwest and Delta were hovering around 45 cents-$1 for soybeans when prices are usually around 15 cents until December (5 cents a month).

These are higher than expected prices, thus causing producers to quickly consider bagging grain for the first time. It doesn’t take long to pay for a grain bagging system at these rates. For example, if you have 300,000 bushels of soybeans, at 45 cents a bushel to store until December, that’s $135,000 the terminal will charge in real money. That more than pays for all the equipment you would need to bag your grain this season. And then you have a leverage tool (grain bagger) which you can use in other seasons.

When storage is backed up, DP prices are high and you feel like you have no other option than to dump it at the terminal, remember you have the option to bag your grain. Then you can wait until the price is right, and grain bagging only costs you approximately 7 cents a bushel. 

Let me make another point that I’ve made on the blog before: Remember that it’s called a grain terminal (or elevator) for a reason- terminal= where your control over your grain ends.
Even if you have a smaller DP charge locally than the ones we are seeing here in the Midwest/Delta, once you give it to the terminal, you lose control over your grain.

Bagging grain gives you the leverage to sell when you are ready, for low storage costs of approximately 7 cents a bushel for the bags.  

We are bagging this week in Missouri to avoid high DP charges, watch the video below from our farm! Happy Harvest!