Bad Things Happen To Grain In Storage
Do you still have some of last year's crop in storage?
You are not alone! Think about those years that you have held onto grian until August or even September.
Think about the interest you lost either by not paying off loans or by not having money in savings.
There is only one good thing that can happen to grain in storage- the price can go up.
Think about all of the bad things that can happen! It loses weight if you areate it. If you don't aerate it, then you risk trouble with damage from mold or you risk rot. In addition to deterioration, insects are likely to munch on the remaining good grain that you have to your name.
Out of all the bad things that can happen to grain, the price can and will go down. You may take as good of care of your grain as possible, but there is nothing that you can do to control where the market will go.
The only way to successfully manage your risk as a producer is to forward contract your grain.
The benefits of selling ahead of time far outweigh the risks of storing grain. The reality is, selling ahead pays in the long run!