—Lancaster Farming. Saturday
20
Corn
[Continued from Page 1]
pay for a bin in a hurry,” he
said. He noted that prices in
his area fell as low as $1.90
per bushel and that com
mercial storage facilities are
full or nearly full due to the
bumper crop harvest which
just came off the field.
Furthermore, he pointed out
that on-the-farm storage fits
nicely into his feeding
program.
As a result, the storage bin
business has been going
strong in recent years. More
and more farmers are
deciding to keep their crops
on the farm in order to be
more flexible, more in
dependent, and take ad
vantage of investment credit
and depreciation. Some
growers have even gone so
far as to put m their own
dryers. In either case, none
of the individuals who were
contacted by this writer
expressed any reservations
about their decision.
Extension agricultural
economist H. Lewis Moore,
University Park, told
Lancaster Fanning that the
big turn-around in the com
business came in 1972 when
exports were increased and
corn became a profitable
cash crop. Since then
millions more acres of com
are being harvested and
record crops are flowing into
the bins. Com farming is not
what it used to be. “Prior to
1972 the bulk of the com crop
was fed to livestock, because
that was the best way to
make a profit,” Moore ex
plained, “but now that the
price of com is up, it’s
become customary to go out
of the livestock business and
into cash grain.”
The storage situation is
different from what it used to
be too. Com which goes to
market has to be a little
better taken care of than the
stuff which stays on the farm
for hogs, cattle or chickens.
Hence farmers have had to
put up better storage
facilities, Moore indicated.
The economist also noted
that com production in the
state has increased
dramatically in recent
years, with this year being
the biggest year of all.
A check with the Penn
sylvania Crop Reporting
Service revealed that
1,140,000 acres of com were
harvested in the state this
year. The' average yield
across the state is estimated
at 88 bushels per acre, giving
us a total harvest of
100,320,000 bushels. That
compares with 1,080,000
acres, 82 bushels per acre,
and 88,560,000 bushels total
for 1975. Obviously, there is
an awful lot more com
around this year.
“We have a whale of a
crop,” the Harrisburg
statistician commented,
adding that many farmers
are asking themselves how
and where they’re going to
store it all. He expressed
some concern about storage
capacity, although no direct
study has been made.
Moore felt that farmers
had justification for up
dating or increasing their
storage capacity since “a lot
of people have suffered (with
low prices) due to poor
quality grain. Good gram
storage is essential ”
A spokesman for one of the
area’s dealers for storage
bins and drying systems
answered quickly with a
“you bet” when he was
asked whether or not storage
Dec. 18. 1976
bins were in demand this
year. Dealers might be
expected to be the most
enthusiastic when it comes
to telling about the' ad
vantages involved with on
the-farm grain storage of
com, but a Manheim area
farmer would give them a
good run for that distinction.
Having already had
several bins on his property,
including drying facilities,
this individual - who asked to
have his name withheld - was
convinced that building
another bm and dryer this
year would not be out of line
because the crop is so big
and he has to have a place to
store it. Giving detailed
information as to why he
made the decision, the
Manheim area farmer in
dicated:
“The 10,000 bushel bin,
with a 27-foot diameter, cost
$4,000 itself. My drying floor
cost -me $lOOO, foundation
and erection costs - $1500;
fau - $1500; stirring device -
$2OOO. So I have a grain
storage-drying system which
cost me $lO,OOO total, or $1
per bushel.” Given average
yields over 5-year periods,
this particular farmer
believed that a bin such as
his new one would take care
of 100 acres of com if yields
are around 100 bushels per
acre.
“What does it cost to dry?”
the Manheim area farmer
asked, while beginning to
answer his-own question with
the next breath. Noting that
these expenses can vary, he
felt a cost of 8-12 cents per
bushel would be applicable
in most circumstances. He
felt Justified in going all the
way with his system in that it
is cheaper for his operation
and he’s taking full ad
vantage of investment
credit, depreciation, and
interest.
“What does it cost you to
run your com down the road
and bring it back,” he asked
as a prelude to citing his
advantages. “It could be as
high as 25 to 30 cents per
bushel,” he said. He noted
that com is now up 40 cents
per bushel from what it was
just a few weeks ago, and
those farmers who could not
hold on to their crops lost a
chunk of profit which could
have been turned into an
investment for storage bins.
“With a Dec. 15 price of $2.50
per bushel, that would pay
for half a bin this year.” He
further estimated that it
would cost a farmer 5% to 6
cents per bushel for every .1
per cent of moisture
removed, or possibly two per
cent of the weight per point
of moisture would be marked
off as the drying bill.
A check with several feed
handlers revealed that
several drying programs are
offered commercially. They
are custom drying, drying
cash grain, and grain
banking. A widely used
program for custom drying
would cost 2 cents per bushel
when the com first comes in,
and 3 cents per every point of
moisture over 14 per cent.
Attached to that is a final
out-charge of 5 cents per
bushel. With cash gram, it’s
common to deduct one per
cent of the crop for every Va
point of moisture above
receiving standards These
charges, it should be noted,
may vary from one mill to
the next.
Another source revealed
that handlers aren’t taking
corn testing over 16 per cent
moisture. A charge of one
per cent for each point over
IS per cent moisture is
made The spokesman also
noted that most of the corn
coming in so far this year
has been testing between 17
and 20 per cent moisture.
Corn is dried there at a
charge of 4% cents for every
point over 15% per cent
moisture. No custom drying
is offered.
The Manheim area farmer
continued to explain his
situation by claiming that
when time and hauling
charges are considered,
keeping and drying corn at
home are most economical
for him. “The way I look at
it,” he concluded, “you can’t
afford to be without it.”
Sam Dum, farm
management specialist at
Penn State, has storage cost
schedules in his office which
would solidify a farmer’s
argument for going this
route. The economics of
storing gram right on the
farm have apparently looked
favorable to a good many
growers since bins dot the
countryside in greater
concentrations than ever
before. Noting that there are
various types of grain
storage systems, Dum
recommended that each
farmer look at his own
operation and decide for
himself which facility would
best fit into his utilization
program. While he had lots
of figures on storage costs at
his disposal, Dum had no
Welding school
» *
offered to public
NEW HOLLAND, Pa. - An
evening welding school for
recent studies on grain
drying costs.
The farm management
specialist pointed out that
one of the more important
points to remember when
making a decision'on grain
storage is to make sure that
the capacity fits the over-all
need. A dairymen, would
not, for example, build a 12-
stall milking parlor for a 30-
cow herd? Similarly, large
capacity dryers don’t belong
on farms if they’re not going
to be used to full advantage.
There did not seem to be
any real’ cut-off point as to
when on-the-farm drying and
storage becomes feasible
and when it doesn’t. There
seems to be a system to fit
most every need, and the
mushrooming of all the
metal bins around the
country appears to be
justified as far as farmers
and economists are con
cerned. It doesn’t seem to
matter either whether or not
the individual sells his com
or feeds it to his own
livestock.
Door Prizes AM-FM Clock Radio & Others
farmers and other interested
persons will begin January
20, at 7:00p.m. at the Garden
Spot High School Vocational
Department. The school will
be conducted one night a
week for five consecutive
Thursday nights. It is
designed for beginners and
others interested in im
proving their welding skills.
Robert Woods, vocational
agriculture teacher at the
high school, will teach
welding in the various
positions, on different kinds
of metal, welding cast iron,
hard surfacing, cutting, and
brazing with an arc welder.
Everyone who'attends will
receive a certified diploma if
they attend all five sessions.
A fee of $7 will be charged for
the course and all material
needed will be provided free
of charge.
The course is based on
instruction developed by the
Lincoln Electric Company
who make arc welding
equipment and have been
conducting welding schools
since 1917. The Farmersville
Equipment Company will
sponsor the course.
J. H. Chase
Chase named
Jeremy H. Chase, 402 S
Cedar St., has been named
manager of the Lititz office
of the Farmers First Bank
The promotion was an
nounced this week by the
bank’s board of directors
Chase began his banking
career January 1973 as an
adjustor-loan officer trainer
with Farmers First. A year
later he was promoted to
Loan Officer. In June 1975 he
was named' assistant
manager of the Ldtitz office.
The welding school will be
limited to 20 persons. Anyone
interested in the course
should contact Robet Woods
by calling 354-9911 between 6
and 8 p.m. by January 7,
1977.