Charlie et el,
I see the CWB will still pay us the STUNNING amount of $3.10/t for carrying our grain for 12 months!
WOW... that must be that CWB 'premium' they extract from us emptying our bank accounts again!
For those of you who didn't read the whole AU Drought post... I will repost a small part... GO AND READ THE REST!
From July 1/08 Callum Downs: "Costs of Storing Grain Before you plan to hold a lot of
grain over from this harvest, to market in the new deregulated post harvest markets for wheat and barley,
make sure you know what your costs are.
The last time we had a “normal” crop was 2005. In that
year the interest cost in holding wheat or barley until July
was about $5/t. This year, with higher interest rates, and a
much higher grain price, the cost has blown out to about
$15/t.
Warehousing
If you use a grain broker to find a buyer for
you, a $25/t increase in the silo price from harvest might
only generate a lift in net return for you of $5/t. That is a
very small margin for the risk of holding grain.
On Farm A lift in the on farm price for grain of $38.67/t
from harvest to July looks impressive.
However,
after
allowing for all costs, the profit margin may only be $9.09/t
from that $38/t. You do pay yourself the storage costs
though."
I see the CWB will still pay us the STUNNING amount of $3.10/t for carrying our grain for 12 months!
WOW... that must be that CWB 'premium' they extract from us emptying our bank accounts again!
For those of you who didn't read the whole AU Drought post... I will repost a small part... GO AND READ THE REST!
From July 1/08 Callum Downs: "Costs of Storing Grain Before you plan to hold a lot of
grain over from this harvest, to market in the new deregulated post harvest markets for wheat and barley,
make sure you know what your costs are.
The last time we had a “normal” crop was 2005. In that
year the interest cost in holding wheat or barley until July
was about $5/t. This year, with higher interest rates, and a
much higher grain price, the cost has blown out to about
$15/t.
Warehousing
If you use a grain broker to find a buyer for
you, a $25/t increase in the silo price from harvest might
only generate a lift in net return for you of $5/t. That is a
very small margin for the risk of holding grain.
On Farm A lift in the on farm price for grain of $38.67/t
from harvest to July looks impressive.
However,
after
allowing for all costs, the profit margin may only be $9.09/t
from that $38/t. You do pay yourself the storage costs
though."