Corn Price & Ownership Costs
Published
3/20/2017
The graph shows weekly central Iowa corn prices since mid-October starting at $3.11. Example costs of ownership are projected: on-farm storage costs of 1 cent per bushel per month plus 5 percent interest and the same bushels commercially stored (5 percent interest plus 16 cents for the first 90 days and 2.8 cents per month thereafter). Corn harvested and stored last fall has not given many opportunities to market above ownership costs, given these assumptions. As the graph shows, corn prices this past week dipped back below this example line of on-farm storage costs. The decision to store a crop should always be accompanied by a plan to market bushels with a price goal above that farm’s unique costs of ownership and a time deadline.
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