How Grain Bins Help Improve Cash Flow by Enabling Off-Season Sales

To the many farmers, the generation of a monthly cash flow is difficult for most of them all year around. In a farm, the market price changes or the situation where most of the sales are realized after some few months makes the income unpredictable. However, grain bins are a tactical business idea to this challenge since farmers can store their produce and only sell them when prices are attractive even during the low demand period. As space units allowing variation storage, grain bins prove useful in averaging revenues and boosting cash flow. Here's how:

 

1. Preservation of Food at the Period of Maximum Production

Animal feeds are consumed when crops are being harvested and thus many grains are produced at this time. But, the price of the produce at the time of harvest may not always he favorable in the market. Moreover, some farmers may see a lot of their product and find that they receive less money in return. Farmers store the grain in grain bins as it helps them avoid selling the grains during a time that there are many suppliers in the market due to the high prices of produce. This in a way makes them able to have the flexibility in determining when to sell their crops to an appropriate time that they would get a better price for them and hence improving their cash flow of the organization.

 

2. Using Information about Changes in Prices

Grain prices are influenced by many factors such as; demand, weather conditions and the international markets. The major benefit of grain bins is that farmers are in a position to sell the crops when demand is high and price is also high. For instance, should there be a scarcity due to increased export or as a result of unfavourable climate in other regions farmers with stored grain can easily sell their crops during off season at very high market prices. If farmer lack grain bin they would have to sell right after the harvests in order to get lower prices which in turn means lack of profits.

 

3. Opportunity to Have Quick and Easy Cash Should the Need Arise

Grain bins are beneficial because of this flexibility in not only when to sell but also in how it covers the farmer’s immediate expenses. Instead of moving around in a bid to sell the crops to meet contingent financial needs, the farmers can keep their grain in store and sell it once prices in the market have risen. This deferred market sale is a perfect way through which farmers can get their cash without having to imagine their profits hence boosting the money circulation. Storing good can be key since farmers do not have any plans b when it comes to expenditures.

 

4. Enabling Off-Season Sales to Diversify Revenue Streams

Another advantage of grain bins is that farmers use it to sell their stored crops at a time when other farmers are not producing their crops, or it is off season. This opens up off-season market hence the farmer shall not have to rely on the main market for most of his income. Dealing when one is out of the specific harvest period can also open up new buyer markets such as especially niche buyers or overseas buyers seeking products that are not in that specific season. They can become useful to spread income and guarantee cash inflows during the period which is not conducive for crop sales.

 

5. Reducing Storage Costs with Efficient Grain Bin Systems

The contemporary grain bins are much optimized structures where costs of storage are kept at minimum levels. Taking time to ensure the grain bins are well maintained and have proper aeration systems it is possible to ensure that the grains to be stored are not spoilt hence they can remain undercover for long without rotting. This also guarantees that farmers can store their produce for a longer time than they are willing to lose it. The efficiency of grain storage without compromising the quality of grain indicates that farmers can hold their grain until the market is most favorable increasing the returns of crops.

 

Conclusion

A necessary structure to farmers, grain bins help farmers preserve their products and sell them in more advantageous terms. With relaxed grain selling regulation in Ethiopia, farmers can cash in on that by affording to buy their grains at different times in the year, minimize wastage and sell when prices are up. Also, grain bins help farmers to generate extra revenues during off seasons hence providing more and steady income to the farmers all the Calendar year. Grain bins are one of the best investments that farmers can make for their operations since these structures would double up as profits boosters in the current farming world.