Grain storage charges

J

JohnDeere8530

Member

• Oct 15, 2018

• #1

I'm going to need short term (1yr) storage off farm next harvest for around 750t of my wheat crop

Before I start any negotiations what should I expect to pay as a ballpark figure for just storage with no drying etc ?

 

Devon James

Member

Location

Devon

• Oct 15, 2018

• #2

Just debating but you wouldn't consider selling it now for movement at harvest?
Leasing storage is around £5/tonne around here

 

Wooly

Member

Mixed Farmer

Location

Romney Marsh

• Oct 15, 2018

• #3

I pay £15/t year which includes loading in and out.

Might seem expensive, but if you have your own store there is always unseen costs. Waiting for lorries, bugs in wheat, mice, moisture claims etc,etc are all someone else's problems.

 

J

JohnDeere8530

Member

• Oct 15, 2018

• #4

I was hazarding a guess at around £15. I guess loading I'm and out would be £1,50 each way ?

 

crazy_bull

Member

Livestock Farmer

Location

Huntingdon

• Oct 15, 2018

• #5

JohnDeere8530 said:

I'm going to need short term (1yr) storage off farm next harvest for around 750t of my wheat crop

Before I start any negotiations what should I expect to pay as a ballpark figure for just storage with no drying etc ?

Click to expand...

What part of the country?

 

Grain Buyer

Member

Location

Omnipresent

• Oct 15, 2018

• #6

JohnDeere8530 said:

I'm going to need short term (1yr) storage off farm next harvest for around 750t of my wheat crop

Before I start any negotiations what should I expect to pay as a ballpark figure for just storage with no drying etc ?

Click to expand...

sounds like you intend to dry at home and shift it straight on, is that right?

 

Grain Buyer

Member

Location

Omnipresent

• Oct 15, 2018

• #7

Haha, the two onsite grainbuyers dive on the poor chap as soon as he sticks his head above the parapet!! Quiet day CB?

 

Wheatland

Member

Arable Farmer

Location

Shropshire

• Oct 15, 2018

• #8

£1/t in, £1/t out and £1/ month here

 

Brisel

Member

Arable Farmer

Location

Midlands

• Oct 15, 2018

• #9

JohnDeere8530 said:

I'm going to need short term (1yr) storage off farm next harvest for around 750t of my wheat crop

Before I start any negotiations what should I expect to pay as a ballpark figure for just storage with no drying etc ?

Click to expand...

I'm sure you haven't forgotten the haul from farm to store. That will be £4-8/t depending on distance. If you keep it 6 months that's £6 haul, £2 handling and £6 to store plus a bit of shrinkage. That's a £14/t uplift you'll need to cover the cost. Sell physical at harvest & buy a futures position or a call option instead?

 

Chae1

Member

Location

Aberdeenshire

• Oct 15, 2018

• #10

Have you considered investing in a central store? You could no doubt sell your tonnage for a profit after a year.

 

Brisel

Member

Arable Farmer

Location

Midlands

• Oct 15, 2018

• #11

Chae1 said:

Have you considered investing in a central store? You could no doubt sell your tonnage for a profit after a year.

Click to expand...

Maybe we could have a grain storage thread without a dig at CS?

 

Grain Buyer

Member

Location

Omnipresent

• Oct 15, 2018

• #12

If you have somewhere to tip and dry, I suggest you sell into the harvest period for swift uplift and buy some futures. Cheap to trade, and although people will shout out "you lose if the market goes down", which is true, but you lose when the market goes down and you have grain in the shed also. The only difference is, you have cash in your hand and a piece of paper which you can store in a drawer.

 

An Gof

Member

Location

Cornwall

• Oct 15, 2018

• #13

Devon James said:

Just debating but you wouldn't consider selling it now for movement at harvest?
Leasing storage is around £5/tonne around here

Click to expand...

£5 to lease it and a service charge on top plus a weight loss and haulage to store

I know Devon Grain is cheaper than Kernow but not that cheap

 

Against_the_grain

Member

Arable Farmer

Location

S.E

• Oct 15, 2018

• #14

Store for £9/t + haulage (£7/t into store in my case), although if sending to a LIFFE registered store you wont necessarily have to pay haulage out of the store. So haulage could be cost neutral if assuming your growing feed wheat and would normally pay haulage. So a net cost of £9/t to store through until Jun.
A better option imo is sell harvest movement and buy 3 lots May call option today for £9/t (ish) and be protected from the market on the downside but exposed to any increase in values (on 50% of the crop).
Much better cash flow too

 

Jetemp

Member

Location

North Yorkshire

• Oct 15, 2018

• #15

£1 in £1 out £4.50 until the end of the year, £3.50 thereafter until end of July. Flexibility in haulage rates in if we are garunteed haulage out etc. etc. can offer drying should you requires at commercial rates. You are able to take pre payments on grain in our store (through certain merchants) should you require to help you cash flow. Loads of other bits and pieces are standard, such as text on intake and outload, analysis through a Tassc approved lab so you know what you have in stock.
If your end destination is likely to be ensus we are ideally placed!

James

 

Laminated

Member

• Oct 15, 2018

• #16

We charge £4 a ton but has to be gone within 2 weeks of harvest. Includes load and unload

 

Devon James

Member

Location

Devon

• Oct 15, 2018

• #17

An Gof said:

£5 to lease it and a service charge on top plus a weight loss and haulage to store

I know Devon Grain is cheaper than Kernow but not that cheap [emoji23][emoji23]

Click to expand...

Oh woops. I was thinking where costs should be [emoji2]

 

Clive

Staff Member

Arable Farmer

Location

Lichfield

• Oct 15, 2018

• #18

JohnDeere8530 said:

I'm going to need short term (1yr) storage off farm next harvest for around 750t of my wheat crop

Before I start any negotiations what should I expect to pay as a ballpark figure for just storage with no drying etc ?

Click to expand...

Going rate around here is circa £8/t inc weighbridge and loading in/ out for up to 11 months in assured stores

Drying, cooling over 25c and cleaning extra

The £1t/month carry in grain would usualy cover the cost

 

Brisel

Member

Arable Farmer

Location

Midlands

• Oct 15, 2018

• #19

If you're going to trade futures, leave some cash in the account as you'll need to cover margin calls, £ for £ if the market moves against you no matter what the final score is. If you don't your position will be liquidated quickly, guaranteeing a loss. Berkeley Futures are reasonable for brokerage charges.

 

Farmer-George

Member

• Oct 15, 2018

• #20

If it’s only for a year most merchants have some kind of harvest move storage deal.

Otherwise looking at the carry in the market currently sell it all at harvest. Storage charge could easily be more then the carry.