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Converting Dry and Cool to a Tower Drier

What's Your Grant Score?

Example of a Dry and Cool

In this hypothetical situation, a farmer currently has yields of 170 bushels per acre of corn and farms 2400 acres. He:

  • Dries 400,000 bushels
  • Currently uses 1,600 btu/lb. BTU/lb. (pt) of drying
  • Currently uses $72,000 to dry = 18 cents/ bushel
  • (1600btu/lb. *7.42lb (10pt)* 70% energy usage*400,000 bushel)/ 91,500 BTU/Gallon = 136,000 gallon = $72,000


Proposed system: T1575 tower dryer

    • Grain invertors

    • Outside cat walk

    • Stainless steel grain floor

    • Use $47,000 propane

      • Propane @ $2/gallon

    • Cost $175,000 installed



    T1575 Tower Dryer return on investment (ROI)

      • Initial ROI = 14%
        $25,000 / $175,000 = 14%

      • Simple payback = 7 years $175,000 / $25,000 = 7 years

        • Energy savings

           $72,000

          -
    $47,000
    $25,000
        • System costs $175,000 before grant


    T1575 Tower System Cash Flow

      First Year POSITIVE Cash flow + $30,625 True cost = $175,000- $43,000 grant = $132,000

    • Annual payment @ 7% for 7 years = $25,000
    • First year depreciation = 175,000/2*35% = $30,625
    • Cash flow
      •    $25,000 energy savings
      • + $30,625 tax savings
      • � $25,000 loan payment
      • = $30,625

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