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In-bin drying to Portable driers

What's Your Grant Score?

Example of an In-bin drying system

  In this hypothetical situation, a farmer has yields of 170 bushels an acre of corn and farms 300 acres. He:

  • Dries 50,000 bushels
  • Currently uses 2,500 BTU/lb. BTU/lb./10 percentage points (pt) of drying
  • Plans on only drying 5 points in a typical year
  • Has two bins with storage of 50,000 bushel each; raised floors and 15hp fans
  • System uses $14,000 to dry with propane priced at $2 per gallon
        2500 BTU/lb.* 7.421lb ( 10 points) * 70% energy

        *50,000 bushel / 91,500 btu/gal. = 7,095 gallon

    = $14,000


Proposed system: 116 dryer

    • Would dry 50,000 bushel in 67 hours @ 5 pts

    • Will dry from 20 pt to 17 pt

    • Use $5,500 propane for 5 pt reduction

      • Propane @ $2 gallon

    • Cost $45,000 installed



    116 Return On Investment (ROI)

      • Initial ROI = $8,500 / $45,000 = 19%

      • Simple payback = $45,000 / $8,500= 5.2 years

        • System costs $45,000 before grant

        • Energy savings

          $14,000

          -
    $5,500
    $8,500

    116 system Cash-Flow

      First Year Cash flow +++ $10,175

    • True cost = $45,000- $11,250 grant = $33,750
    • Annual payment @ 7% for 7 years = $6,200
    • Year 1 depreciation = 45,000/2*35% = $7,875
    • Cash flow
      • $8,500 energy savings
      • + $7,875 Tax savings
      • � $6,200 loan payment
      • = $10,175 Positive Cash Flow year one

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