Grain Bins in Southern Idaho Let Farmers Make Additional Profit in the Commodities Market

Posted By : Aubrey mead , on May, 2016

 

An intriguing use some farmers have discovered for grain bins in Southern Idaho area allows them to store commodities on their property to sell later when prices rise. Farmers across the country increasingly choose to store a large percentage of their crop harvest in their own grain elevators. Common sizes for these units run from 60,000 to 75,000 bushels. Instead of selling as soon as they harvest the product, when prices are generally lowest, they can wait until the price goes up 20 or 25 cents. It’s easy to see how investing in this equipment can lead to profitable returns of thousands of dollars every year. Having just one 60,000-bushel storage bin could result in an extra $15,000 or more profit on the harvest.

These Grain Bins in Southern Idaho are metal, cylindrical and enormous. As people drive across the lower part of the state, they can see the big silver-colored equipment from a great distance away. Contractors build the units on a concrete foundation. They can include features like humidity control and aeration devices. Farmers use them to store harvests of corn, soybeans, wheat and other food products. Corn is especially in demand for various uses, including for ethanol production and corn syrup for sweetening commercially produced foods and beverages. Prices can fluctuate significantly, bringing substantial profits to property owners who can hold onto their harvest for several months.

Having grain storage equipment constructed by a contractor such as Leon James Construction Co., Inc. also saves farmers time. They don’t have to travel to area grain elevators and wait around for their turn. Instead, they load the harvest into equipment on their own property. They save money drying it at the farm instead of hauling it somewhere else for this task to be completed. Another option would be to store grain at an area facility, but that costs money and the farmer does not own the equipment. Although it can take several years to pay off one of these Grain Bins with the extra profit from the harvest, tax incentives help with the initial cost. Many farmers begin with one or two and add more over time.

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