28 November 4, 2014 2014 LOGAN COUNTY FARM OUTLOOK MAGAZINE LINCOLN DAILY NEWS.com
ticket printers to cut down on lines at
the elevator only to discover the next
bottleneck in the process.
In addition to handling the physical
product, the elevator also serves as the
financial hub for most producers. Corn
and beans are either stored at the elevator
for future sales or immediately sold to
the elevator to resolve cash-flow needs.
The elevator serves as the buffer between
the producer and the end-user, managing
storage and carry-over. That role as buffer
was critical this year.
Both Bauer and Shew mentioned that end-
users have downsized their storage facilities
and have transformed their operations
to be more “just-in-time” oriented. The
result of that downsizing is that prices have
become more volatile. That means the
elevator manager must watch the volatile
information coming at a lightning pace
across the computer screen and decide
the best time to sell. The solvency of the
elevator and the community depend on it.
Corn prices this year have been lower
because of the enormous production in
Iowa and Illinois. Bean prices have been
sustained at a good rate because of the
worldwide demand for beans. Bauer cited
that he thought few acres would convert
from corn to beans next year because it is
still difficult to get enough money out of
beans to pay cash rent.
Most of the corn and bean crop have been
consumed by local ethanol producers
and other local end users. Because of
the worldwide markets that are closed to
GMOs, fewer loads went to Havana for the
trip down the river.
Bauer said that he looked forward to the
end of harvest, and thought everything
might be over before thanksgiving. He
remembered a year when harvest ended on
Christmas Eve, and was glad it would not
end that late this year.
What will the future bring? Bauer said
that while most businesses have to plan
ahead five years, elevators have to plan
fifteen years in advance. Sizable costly
infrastructure investments need to keep
pace with the changes expected in this
industry. Both Bauer and Shew agree
that the major changes will continue to
come in the size of both the corn and bean
crop. Changes in genetics are necessary to
produce crops that will keep pace with the
population of the world. And because of
good planning, the local elevator manager
will be ready.
