RP92-217 #2 Producer Marketing Mangement: Deferred Pricing Alternatives for Grain

Grain producers must make marketing decisions every day. First they must decide whether to price or hold grain. If they decide to price grain, they must then choose the most appropriate method of pricing: cash sale, forward contract, or hedging. If they decide to hold grain (not to price), they must choose the most appropriate method of retaining ownership. This fact sheet presents some guidelines to help producers choose the least costly method of owning grain or speculating on price level changes.

RP92-217 No. 19 Cost of Grain Storage

Grain marketing decisions are among the toughest the farm owner/operator or manager must make. Grain producers store grain to speculate on receiving higher prices, earn a return above storage costs, or to take advantage of government programs. Prices must increase enough to cover the additional costs, or forward contract prices must exceed current prices by more than the cost of storage in order to justify forward pricing. The gain in prices received can come from both changes in price level and changes in basis. This research publication discusses all the areas of the cost of grain storage.

Grain Storage Costs and Rental Rates

Trends in Grain Storage - Commercial grain storage eliminates the need to monitor grain conditions and, hence, offers the peace of mind that unsold grain will remain in condition. There may be a cost trade-off between this reduced storage risk and the cost of on-farm storage.

The NEBLINE, October 1998

Contents: Character Counts! for everyone Growing hardy bulbs Tree planting snafus Timely care of hardy chrysantheums Mole, mole, go away Termite control options: baits vs. barriers? Celebrate America Recycles Day Household hazardous waste collection: November 7 It's time for your annual “pest-proof” check-up Removing skunk odor Temporary/emergency grain storage options Control leafy spurge Fall clean-up of warm-season grasses The first frost, the last hurrah Pasture weed control What is this thing called winter desiccation? Dormant planting grasses and legumes Finding facts about vegetables and fruits Healthy Eating: No-Crust Pumpkin Pie Focus on Food Preparing for the winter food olympics! Family & Community Education News FCE: Jean's Journal Household Hints Furniture workshop AARP offers 55 Alive—Mature Driver Course Caring for athletic uniforms Halloween safety 4-H Bulletin Board Character Counts! Super Day Camps 4-H CAN Fight Hunger Food Campaign 4-H Shooting Sports meeting Holiday gifts needed 4-H Volunteer Forum Make a Difference Day Engineering and Technology 4-H Club Put us to work, please! Lancaster County Born and Raised beef SERIES fun America Recycles Day Livestock judging teams excel at state Lemke and Nisley place University of Nebraska Speakers Bureau announced Public notice Community Resource Directory available E.N. Thompson Forum on World Issues