Grain Storage Issues

Future Storage Needs ?

Who Builds New Storage? Commercial Grain Companies Land Owner Renter

Commercial Storage Bigger Bins = Cheaper per bushel cost Drying & Handling Equipment already in place Manpower to handle the crop Assume quality risk Eliminates reloading from farm bin Saves labor & handling shrink Eliminates over-drying cost & shrink

Commercial Storage Instant payment after grain sale End users need steady grain flow Normally trade large lots Able to deliver large volume in short time Commercials trade basis not price

Land Owner On-Farm storage is convenient at harvest Tax savings More flexible marketing options Saves storage cost Saves some drying cost ? Who checks the bin when they go south

Land Owner Double handling Quality risk Most farm storage can’t handle wet crop Equipment maintenance Property tax & insurance Have to move grain to get paid Would renter use the storage Why invest, I’m retiring

Renter Many farm on large scale Haul with semi’s Most interested in speed Typically sell more grain ahead of harvest Don’t want to check multiple bins over winter Won’t invest in facilities on rented land

Grain In Storage Quality Issues Soybeans harvested well over 13% moisture Lots of bean storage with little or no air Low oil yield Low protein soybean meal High moisture soybean meal

Grain In Storage Quality Issues Corn Harvested 25% - 35% moisture Should be dried twice Inadequate air on most farm storage to handle corn crop this wet Mycotoxins Low test weight Excessive kernel breakage Protein – Starch- Amino Acids