When does it really pay to store crops?
Studying Illinois crop prices, Scott Irwin
, University of Illinois agricultural economics professor, has looked at the prices from 1973 to 2009 to be able to clearly identify the up and down moves in the seasonal tendencies.
His studies show the following emerging rules for crop pricing:
- There is a moderate pre-harvest pricing premium for corn, not as high for soybeans.
- Storage pays off in soybeans but not for corn.
- Unless you have really good reasons, avoid holding grain into the next summer.
- Always remember these seasonal tendencies were derived over a really long period of time and can vary a lot from year to year.
Listen in as Irwin describes why these rules apply with University of Illinois Extension’s Todd Gleason.