Farmers reap more benefits choosing on-farm grain storage

Grain storage is vital to the success of marketing and selling quality products. Over the past few years, low commodity prices have caused some farmers to store more grain than in years past.

According to a U.S. Department of Agriculture National Agricultural Statistics Service data report earlier this year, there is a potential for record grain storage demand this fall.

Nebraska saw an increase of about 140 million bushels in on-farm grain storage for the 25-year period from 1996 to 2019, while the U.S. as a whole saw an increase of 2.5 billion bushels.

As corn and soybean prices have declined from the highs of 10 years ago, and yields have continued to climb, demand for on-farm grain storage has surged throughout the Corn Belt.

Farmers are turning to on-farm storage as a planned way to increase the chances of making money from their crops instead of simply crossing their fingers and hoping for the best. “What if there was a way to sell grain throughout the year when prices are highest? There is a way, and the reality is on-farm grain storage is becoming more and more common,” as written in an article by TAM Systems.

Taking grain to a feed mill or elevator comes with extra charges for drying, shrink, storage, handling and more.

Instead of paying these additional costs, many farmers prefer to store their grain on site and keep that money.

Dave Bauerle, a producer in Chase County, stores his corn on site using grain bins and grain bags.

“Depending on local supply and demand, farm storage usually pays for itself,” he said.

Bauerle is a corn producer, and by keeping it on site, he saves money on storage fees at an elevator, and he can deliver directly from his farm to wherever he wants to sell it.

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