2008 National Women in Agriculture Educators Conference Grain Management Decisions at Harvest...

2008 National Women in AgricultureEducators Conference

Grain ManagementGrain ManagementDecisions at HarvestDecisions at Harvest

Garrett Stoerger Paul Ellinger [email protected] [email protected]

University of IllinoisApril 2, 2008

22008 National Women in Agriculture Educators Conference

Harvest time FAQ’s

Where should I deliver my grain?

How do I structure and organize my grain marketing decisions?

Should I be adding on-farm storage to my operation?


Answers to these questions

The University of Illinois team of agricultural economists have developed a set of tools to assist educators in the delivery of effective educational programs for farmers


How the tools are used…

Grain marketing and management tools are taught in a classroom style setting with each participant having computer accessOften taught at Annie’s ProjectLaptops or computer labsClass size ranges from 10 to 25Smaller groups allow for more interactionUse of developed case studies


Teaching Goals and Objectives

Let participants dictate the class speedSpreadsheet tools can be tedious for first time

users Get them started in the right direction

Having participants start on their own records in the classroom can lead to success at home

Utilize case studiesDon’t make it a typing lesson – time is limited


What is FAST?

Farm Analysis Solution Tools are a comprehensive set of Microsoft Excel spreadsheets designed to assist those in agriculture make better decisions via user-friendly computer programs

Over 50 spreadsheets have currently been developed to aid farmers in their decision making


FAST is easy…

Each spreadsheet has been developed with the end user in mindInput friendlyTools can be personalizedProgram Descriptions (user guides) are

easily accessibleAvailable through a CD or the internetQuarterly update service for subscribersSupport team available for questions


FAST Categories

Financial Analysis Investment Analysis Loan Analysis Farm Management Grain Marketing and

Management Risk Management, and Yield and

Land Database Tools


Grain Management Decisions at Harvest

Marketing tools that complement one another in an academic setting

Grain Delivery ModelGrain Inventory ManagementGrain Storage Purchase Analysis


Why the tools are used…

Grain Delivery Model The growing ethanol business has

provided new opportunities for delivery locationsGrain delivery points should be analyzed

using more than the spot delivery price The current commodity prices are forcing

many elevators to change storage costsHow do your local elevators compare?



Grain Inventory Management Tool Women in the record keeping role are

looking to improve the quality of their recordsAllows an active role in record keepingA simple data entry method can keep track of

multiple locations with ease Provides grain production statements for all

grain ownersQuick and easy way to impress your landlords

Improves communicationSpousesLandowners



Grain Storage Purchase Analysis The current economic environment in

agriculture lends itself to on-farm storageWhat are the economics?

• Building costs• Maintenance• Utilities

How does it compare to commercial storage facilities?


Grain Delivery Model

Designed to aid grain owners when comparing delivery point alternativesCalculates net price received after

drying, storage, transportation, and other costs

Elevator specific inputs such as shrink factor and drop charges built in

Computes a breakeven price level for grain that is placed in deferred storage


Grain Delivery Model Summary


Projected Price ModuleBlack-Scholes’ Model


Grain Inventory Management

A program designed to make quick and easy work out of tracking grain from field to binEliminates grain inventory “headaches”

Produces summaries of acreage planted, yields, grain fed to livestock, etc.

Data can be queried by farm, storage location, landowner, etc. X


How it works…

Inputs• Information about the grain owners, storage locations, farm locations, and planted acres

Transactions• Records everything from production to transfers to the sale of the commodity

Reports• Gives details of total acres planted, bushels produced, and sales records by owner or location

• Keeps a “paper- trail” for all grain transactions


What it reports…

Report of Productions by Location Ele

vato

r 1

Ele

vato

r 2

Production• Summary of the crop’s status

Remaining crop• A report of what bushels have not been marketed


Grain Storage Purchase Analysis

A tool designed to calculate the costs associated with adding on-farm storageCalculates costs in terms of overall costs

and per bushel Can also evaluate the

cost/benefit of on-farmstorage when comparedto commercial storagelocations


Grain Storage Costs

Cost per Bushel• Summary of costs in per bushel terms

Cost per Year• Summary of costs in yearly terms


On-Farm vs. In-town

Cost Comparison• Drying Charges• Shrink Costs• Storage Costs• Transportation Costs• Quantity and Quality Premiums


FAST Spreadsheets

Lets take a look at a few of the spreadsheets

2008 National Women in Agriculture Educators Conference Grain Management Decisions at Harvest...

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