Why Store Your Own Grain?
IS THERE ANY REASON NOT TO USE YOUR OWN ON FARM STORAGE?
The only plausible reason may be that you'd not like to see your inheritors benefit?
The calculations do not reflect the additional hidden cost of central storage such as:
- Transport to central silo over +- 30km: R15 - 20 / ton x 8,000 = R120,000 - R160,000 / annum
- Screenings: Central storage deducts 2% = 160 tons x R800/ton = R128,000 / annum.
- Real screenings price for feed @ R500/ton = R80,000 .
- The above more than offsets any cost you may have to operate the silo on farm.
Apart from this, the risk of NOT storing you own grain is important and includes:
- Central storage may decide not to accommodate farmer’s stock any longer – this amounts to forcing you to sell to central storage.
- Silos may be leased by the current owner in total to the large food corporations, leaving you to find storage many miles away, if available, or forcing you to sell to the large corporations on their terms.
- The cost may just be increased, as is happening in many areas presently, to the point where you are forced to sell at a timing not entirely in your interest. From a logistical point of view, even flow-through bins only would enable the farmer to contract transport at favorable rates and would not delay the harvesting process.
IS IT WORTH TO INVEST IN YOUR OWN STORAGE?YES, YES, YES - IT IS THE MOST IMPORTANT VALUE YOU CAN ADD TO YOUR OWN GRAIN, AND YOU CAN
Modern on-farm storage systems must provide for proper management controls such as temperature control and aeration systems, fumigation systems and good handling and storage equipment. With minimal effort, you can be master of your crop.
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