Estimating Costs for Grain Storage:Bags and Bins
Hence Duncan, Aaron Smith, and Christopher Narayanan ( February, 2022 )
Summary
Storage is a powerful risk management tool for Tennessee corn producers. Storage allows producers to reduce harvest delays, avoid seasonal price lows during harvest, expand the marketing window, and harvest grain at higher moisture – if drying or aeration is available. There are two main options to store grain: grain bins or grain bags. Grain bins are a traditional form of storage that can be constructed in a wide variety of sizes and configurations. Bin size varies from 1,000 to over 500,000 bushels. Additionally, grain bins can hold grain safely for extended periods by allowing the grain to be aerated, or dried, before or during storage. Constructing grain bins can be a capital-intensive undertaking. Additionally, storage quantity is fixed in the short-term. For example, if production exceeds storage capacity in a crop year, it is then difficult to expand bin storage to meet immediate needs. In the past decade, grain bags have grown in popularity among Mid-South producers, primarily as a way to store corn. However, milo, soybeans and wheat have also been stored in grain bags. Bags typically range in size from 10,000 to 18,000 bushels and allow for up to six months of storage. Storage bags allow producers to keep their combines working during harvest by reducing trucking delays (hauling time and unloading wait times at elevators). Additionally, storage can be rapidly adjusted to increase capacity in years of abundant production. For corn stored in grain bags, ideally, moisture should be 16 percent or less (soybeans less than 13 percent, wheat less than 14 percent and milo less than 13 percent), which can be challenging when dealing with adverse weather conditions. Grains and oilseeds at higher moisture can be stored for shorter periods of time. This publication serves as a guide to help producers evaluate storage options by discussing the advantages and disadvantages of bin and bag storage systems and assist them in quantifying the storage system’s costs.
Details
| Publisher | University of Tennessee Extension |
| Publication Date | February, 2022 |
| Publication Views | 144 |
| Material Type | Written Material |
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