Grain Management
Decisions at Harvest
Garrett Stoerger
Paul Ellinger
gstoerge@uiuc.edu
pellinge@uiuc.edu
University of Illinois
April 2, 2008
2008 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?
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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
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How the tools are used…
 Grain marketing and management tools are
taught in a classroom style setting with
each participant having computer access
Often taught at Annie’s Project
Laptops or computer labs
Class size ranges from 10 to 25
Smaller groups allow for more interaction
Use of developed case studies
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Teaching Goals and Objectives
 Let participants dictate the class speed
Spreadsheet 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 studies
Don’t make it a typing lesson – time is limited
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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 userfriendly computer programs
 Over 50 spreadsheets have currently been
developed to aid farmers in their decision
making
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FAST is easy…
 Each spreadsheet has been developed with
the end user in mind
Input friendly
Tools can be personalized
Program Descriptions (user guides) are easily
accessible
Available through a CD or the internet
Quarterly update service for subscribers
Support team available for questions
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FAST Categories
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Financial Analysis
Investment Analysis
Loan Analysis
Farm Management
Grain Marketing and Management
Risk Management, and Yield and Land
Database Tools
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Grain Management Decisions at Harvest
 Marketing tools that complement one
another in an academic setting
Grain Delivery Model
Grain Inventory Management
Grain Storage Purchase Analysis
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Why the tools are used…
Grain Delivery Model
 The growing ethanol business has provided
new opportunities for delivery locations
Grain delivery points should be analyzed using
more than the spot delivery price
 The current commodity prices are forcing
many elevators to change storage costs
How do your local elevators compare?
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Why the tools are used…
Grain Inventory Management Tool
 Women in the record keeping role are looking to
improve the quality of their records
 Allows an active role in record keeping
 A simple data entry method can keep track of multiple
locations with ease
 Provides grain production statements for all grain
owners
 Quick and easy way to impress your landlords
 Improves communication
 Spouses
 Landowners
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Why the tools are used…
Grain Storage Purchase Analysis
 The current economic environment in
agriculture lends itself to on-farm storage
What are the economics?
•Building costs
•Maintenance
•Utilities
How does it compare to commercial storage
facilities?
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Grain Delivery Model
 Designed to aid grain owners when
comparing delivery point alternatives
Calculates 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
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Grain Delivery Model Summary
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Projected Price Module
Black-Scholes’ Model
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Grain Inventory Management
 A program designed to make quick and
easy work out of tracking grain from field to
bin
Eliminates grain inventory “headaches”
 Produces summaries of acreage planted,
yields, grain fed to livestock, etc.
 Data can be queried by farm,
storage location, landowner,
etc.
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How it works…
Transactions
• Records everything
from production to
transfers to the sale
of the commodity
Inputs
• Information about
the grain owners,
storage locations,
farm locations, and
planted acres
2008 National Women in Agriculture Educators Conference
Reports
• Gives details of
total acres planted,
bushels produced,
and sales records
by owner or location
• Keeps a “papertrail” for all grain
transactions
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What it reports…
Report of Productions by Location
Production
• Summary of the
crop’s status
Remaining crop
• A report of what
bushels have not
been marketed
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Grain Storage Purchase Analysis
 A tool designed to calculate the costs
associated with adding on-farm storage
Calculates costs in terms of overall costs and
per bushel
 Can also evaluate the
cost/benefit of on-farm
storage when compared
to commercial storage
locations
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Grain Storage Costs
Cost per Year
• Summary of costs
in yearly terms
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Cost per Bushel
• Summary of costs
in per bushel terms
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On-Farm vs. In-town
Cost Comparison
• Drying Charges
• Shrink Costs
• Storage Costs
• Transportation Costs
• Quantity and Quality
Premiums
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FAST Spreadsheets
Lets take a look at a few of the spreadsheets
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