In GrainBridge, sealed grain should be managed similarly to how operating note interest is handled. Since the sealed grain is used as collateral for a lower interest loan through the FSA, the important thing to budget for in GrainBridge is the expected interest you will incur while the loan is outstanding.
GrainBridge is used to make projections on your profitability and the cost per bushel/acre/head, so it's important to estimate the interest expense because it impacts your bottom line. Project the expense based on how long you expect to hold the grain. Once the grain is sold and the loan is paid back, the expense should be updated to reflect the actual cost associated with the loan.
The steps for managing the interest expense associated with sealed grain are outlined below:
In GrainBridge, the gross expense section of the 'Plan' is where interest expense will be managed.
The gross expense section contains a category labeled 'short term interest'. To track the estimated interest that will be paid on the sealed grain loan separately from the interest expense associated with an operating note at your lending institution, a custom expense can be added.
Scroll to the bottom of the gross expense page and click the blue text that reads, 'Add & manage custom expenses.'
Enter a name for the expense and choose if you'd like to 'group' it with another expense. It may make sense to group it with 'Short Term Interest' if you'd like the system to provide a total for all short term interest expected.
Once the new expense is saved, it will display in the 'Manage Gross Custom Expense' window. Be sure it exists in the list and is grouped correctly before moving on.
Go back to the Gross Expense page and locate where the new custom expense has been added. Enter the estimated interest cost expected. Be sure to alter the short term interest line item if the sealed grain program has reduced the amount of interest you were expecting to pay on an operating note with your lending institution.
Keep in mind, the gross expenses are automatically allocated to each profile based on the number of acres or head in the profile. If you would like to allocate the expense differently than the system's automatic allocation to the profile, click the dropdown next to the allocation and choose 'assign a percentage.' Enter the percentage of your liking to allocate to the expense amount according to your preference and operation.