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Should you pay for grain storage?

An ag economist says farmers should question their grain storage options this fall.

Jim Hilker with Michigan State University tells Brownfield he doesn’t think commercial storage is a viable choice for farmers with the current market environment.  “That could be three or four cents a month per bushel and that adds up.  Right now we have to make every penny.”  He says if farmers can keep grain in good condition the more economical choice is to store it on the farm.

Hilker says corn and soybean profits from 2007 to 2013 were some of the best returns farmers have ever had and that’s helping to keep them afloat during this down cycle.  “There might have been five or six years tied together in the ‘70s but not continuously, and you have to go back to 1914-1920 to have that kind of good return.”

He says many farmers are still operating with a good cash flow this year, but net worth is declining and every cost needs questioning.

AUDIO: Interview with Jim Hilker