Re: Where do farmers sell their grain?

Posted by paul on December 30, 2008 at 16:38:44 from (66.60.197.38):

In Reply to: Where do farmers sell their grain? posted by I need a handle on December 30, 2008 at 16:16:10:

Kinda depends on where you ar elocated, what markets develop 'there'.

Here it is common to sell most of the grain through a coop.

Other oppertunities I have:

A neighbor. Sold some oats to a neighbor, years ago sold some corn to a more distant neighbor. Got to get together, who needs it, when, & when you have it for sale. If you have storage, and can deliver later on when your dairy neighbors run low, maybe a good place to check.

A soybean mill. Got a couple about 30 miles away, they buy from the coops, or they buy from a farmer - but you need to set up contracts, deliver enough at a time, etc. They will not buy everything in fall when you harvest, you need to store, etc.

Ethanol plants. Some are closed coops, the good ones around here are, you need to own shares to do business with them. Again, deliver when they want.

A privately owned hog feed mill is about 20 miles from me, at times offered 10 cents a bu more for corn, of late 1 or 2 cents more. They will buy more in fall, but working out a delivery schedule is more profitable for you.... (Beef, hog, turkey growers are also possibilites.

Some folk have gotten into drying & bagging or delivering shell corn for corn stoves. Probably not a huge market, but an idea.

Ear corn can go to specialty feeders, or perhaps bagged up for squirrel feed. Sold at fleet/farm stores, or farmer's market. Big bucks if you can find a way into this nitche.

I can haul to a river terminal by the semiload about 100 miles away. This is big business, likely 5000bu contracts, deliver when told to, semis only, etc. This used to be where all the coops took it too, tho of late rail cars have become more popular.

There is a private elevator - like a coop, but just privately owned - about 15 miles from me, I could probably deliver there instead of one of the 3 coops I am part of.

'Here' grain elevators were set up every 5 or 10 miles, where the steam engine stops were, so it is pretty common to have less than 10 miles to go to one of the old relics - many have been rebuilt in to pretty good grain elevators, most are part of Cenex coop, and that where most of our grain goes.

Here in MN we produce about 2x as much corn as we use, so it is important to find paths to ship it away, or local uses for it at a feed mill or ethanol plant or bean crusher (feed meal & oil for food, industry, or biodiesel). Since more grain is grown than used, it is hard to get local buyers interested in small sales, putzing with a farmer, etc. We get far less than Chigago Board of Trade price for grain.

Depends how things are where you live, if there is more grain used than being grown locally you can have it pretty easy finding a local buyer. You can get more than CBOT prices in some areas, and buyers are willing to work with you.

I would think the dairies would be a good place to look if you have storage, or else the elevators to deal with marketing it for you.

--->Paul

Replies:

• Re: Where do farmers sell their grain? I need a handle 16:48:28 12/30/08 (0)

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