An ag economist with University of Missouri Extension says the potential for a large corn crop has farmers searching for temporary storage.
Ben Brown tells Brownfield “several people have asked me about the economic viability of bag storage, trying to come up with temporary options to hold product.”
He says the economic viability of grain bag storage depends on storage costs at a commercial facility.
“We’re seeing quite a bit of volatility. Just yesterday, a commercial facility told me they had increased storage prices and were considering increasing them already again, because of the cost to them and the demand for storage.”
But Brown says grain bag storage could also be more about harvest efficiency than economic viability. If farmers don’t want to use bags for temporary storage, piling grain is another option, but he says it’s not without risk.
“Grain is exposed to the elements and you have all sorts of challenges picking it up. Unfortunately, sometimes we’re forced into those scenarios where you have to pile grain.”
He says it’s possible farmers could still be searching for temporary storage solutions as corn harvest begins.
“I would imagine there are some people starting to harvest corn early in the hopes of getting a jump on everyone else.”
Grain bins are a more permanent storage investment that can provide a good return for some farmers, but Brown says “the cost of building grain bins has grown very fast. I think that’s part of the conversation around bag storage: is there an alternative to the fixed cost of on-farm grain storage?”
USDA is forecasting a large corn crop for Missouri at 191 bushels/acre, but Brown says he thinks it could be a strong estimate given the variability of the crop in the state.
