This may be the year to keep as much of your newly harvested corn close to home.
Declining corn market prices make paying for commercial storage or selling straight out of the field far from ideal scenarios, making on-farm storage a more attractive option for capturing more value for the grain that's seeing its market value continue to slide into harvest this fall. Right now, it's the scenario that has the lowest opportunity cost heading into a fall when a huge crop's expected, says Purdue University ag economist Corinne Alexander.
""If you don't have storage on your farm, your next best choice might be to sell even if you have to take less than you wanted," she says in a university report. "It's a complex equation and there are no easy answers."Read More: Remember SLAM To Keep Stored Grain In Good Shape
Despite the difficulty in making a clear-cut decision in general, you can factor that opportunity cost by calculating commercial storage cost and the time you think you'll store that grain. Or, if you're looking at selling straight off the combine, a simple calculation of cash price and your projected bushels can uncover income in that scenario. Neither of these, Alexander says, will likely net the income of storing your corn on your farm...if you've got the room.
"With so much corn coming in at once it will be difficult to find room for it all," she adds.
There is a silver lining to all of this, though. If grain is cheap and plentiful during and after harvest, there are market factors in place right now that could dictate more demand from sectors like ethanol and livestock.
"If corn is cheap, people will find a way to use it," Alexander says.
