Grain Storage Issues

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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 StorageQuality 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 StorageQuality 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