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Storage Carrying Cost Viewer - Last Updated 10/17/00 This storage carrying cost spreadsheet calculates the breakeven price after incurring on-farm storage costs based on my assumptions of a 10% interest rate and starting prices of $2.80 for HRS wheat, $1.30 for corn, $4 soybeans, $12.50 pinto beans, and $4.90 sunflowers. I include handling cost only for corn, pinto beans, and sunflowers and assume wheat and soybeans are already in storage so that the handling costs of putting it into storage has already been incurred. Therefore it is not avoidable and is not a cost used in the decision to continue to store. I include a $.10 handling charge for pinto beans as you are likely to crack some of the pinto's each time you handle them. If you want to use different assumptions, download the carrying cost spreadsheet and enter in your own numbers and crops. (Special Thanks to Dr. George Flaskerud, Marketing Extension Specialist at NDSU for designing this simple, yet very useful template).
The spreadsheet shows that under my assumptions, I would need at least $3.03 for HRS wheat I store until July, $1.46 for corn I store into July, $4.33 for soybeans, and $13.64 dry beans, and $5.41 for sunflowers in order to break even. Profits acrue if the price goes above these numbers by the end of July. The question of storage then becomes, "Will prices be higher or lower in July?" If higher, you should store. If lower, sell. |
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