The decision to install grain storage systems is a balance in understanding the final return on investment. GSI has launched a new mobile tool that provides help with the ROI calculation and shows that you earn more by storing grain on farm and marketing it at a future date compared to selling it at harvest time.
Rolled out at the National Farm Machinery Show, the new storage ROI tool can be downloaded from GSI's website at roicalculator.grainsystems.com, and it can be downloaded as a free iPad or iPhone app from the Apple Store. There is no android version at this time.
There are several advantages of on-farm storage that the ROI calculator helps you figure out including the fact that those systems offer greater marketing flexibility and provide higher returns thanks to two factors: One is the opportunity, depending on your location, for a better basis level by storing grain and selling at a later date. The second factor is futures carry, when higher prices can be realized when you store at harvest and contract for future delivery.
If you're considering building or expanding on-farm storage the calculator can help determine how long it will take you to recoup the cost based on added revenues you earn due to market carry. Typically, according to GSI, the cost of building added on-farm storage can be recovered in four to five seasons. If you plan to store grain at a commercial elevator for future sale, you can also use the ROI Calculator to determine the potential revenue based on storage location, cost of storage and other expenses.
Check out the app at the link above.