Determining the Optimal Decision to Store or Contract Sale Food-Grade Corn, Field Corn, and Soybeans

A whole farm economic analysis was performed to maximize net returns utilizing variable maturity groups of corn and soybeans over different soil types. Demand for drying and storage equipment throughout harvest was generated based on profit-maximizing combinations of grain types, their respective maturity groups, and yield potential over different topsoil depths. Two marketing strategies were considered: cash and futures contract sales. It was found that drying and storage equipment became a limiting factor in the proposed system, but at different times during harvest. This bottleneck prevented additional grain from capturing value in the futures market and increasing net returns.