Prepare Now for Potential Storage Crunch This Harvest

USDA released its latest estimates last week and the news is big — big crops that is. In fact, the 2025 corn crop is estimated to be record-large at 16.8 billion bushels. Estimated soybean production at 4.3 billion bushels isn’t record-breaking, but soybeans face a different challenge. With China not currently buying from the U.S., more bushels will need to be stored than in years past. The question becomes where is all this grain going? If storage becomes an issue and post-harvest sales increase, what will that mean for prices? 

Naomi Blohm, senior market adviser at Total Farm Marketing, said exceptionally large crops “might mean piles on the ground at local grain elevators.” 

“Most importantly,” she continued, “It means that cash basis likely stays wide, or ‘unattractive’ as grain elevators and end users have plentiful supply.” 

Arlan Suderman, chief commodities economist at StoneX, said this could especially be a problem for the northwest Midwest, which typically sells a lot of soybeans via railcar to the Pacific Northwest to be exported. 

“But many buyers for the rail market have no bid currently, with China absent from the market,” he said. “That means that those bushels need to be stored, further aggravating what was already going to be a tight storage situation. That is why we’re seeing basis for new-crop soybeans as much as $1.85 or more below Chicago futures for soybeans in some Dakota markets. Weakness in basis in the northwest is also impacting basis across the Midwest to the south and east to minimize the flow of corn and soybeans into those areas, which will have their own storage issues.” 

Suderman said farmers shouldn’t wait to establish a storage plan for the 2025 harvest. 

“There may be an opportunity for farmers to capture basis improvement, in addition to market carry, if they can find a home for the bushels at harvest,” he said. “Developing that strategy should be done sooner rather than later to avoid mid-harvest surprises, as some buyers say they will only accept grain on a cash sale basis at harvest. Farmers don’t want to be trapped in that position. They need to be having those conversations with buyers now, if they haven’t already had them.” 

What If I Run Out of Storage?

First, consider potential indoor storage locations in existing buildings. Grain can be stored up to three months if the grain isn’t piled along outside walls.

A grain bagging system is another option. A 10-foot-diameter bag can store about 60 bushels per foot. Bagged grain should be dry and cool. The cost of a single-use storage bag is around 5–7¢ per bushel, plus loading and unloading equipment, which can cost between $50,000 and $165,000.

Outdoor Storage Considerations

Grain can be successfully stored outdoors temporarily, with a proper holding area. If corn is sufficiently dry (15% moisture or less) and stored in piles in the cooler fall and winter months, it normally does not need to be covered or aerated. 

However, the site should be properly prepared with good drainage and an adequate storage pad. The first step is estimating how much area needed to hold crop overflow. Include space for conveying equipment and maneuvering trucks and trailers. A rule of thumb is that trucks need ¼–½ acre (or 130-foot diameter) to turn around. 

Create the storage pad by mixing lime, fly ash, or cement in the soil prior to compacting it to reduce water permeability, and creating a 1–2% slope. The amount of compression necessary for a good pad should approach 95% of the standard proctor density, which can be measured with a density gauge. A 6-millimeter layer of plastic on the ground surface can help ground moisture from wetting the grain. 

When building the pile, keep the drop distance from the spout of the auger to the pile at a minimum. This will achieve maximum slope. The pile can be covered with tarps if left exposed for several months or if the fall is wet. 

If there are concerns about the center of the pile heating up, ventilation ducts can be positioned parallel to the long axis of a rectangular pile. Positioning ducting this way cools the pile’s core and also makes it easier to remove the corn later. To aerate, use low-velocity fans that provide approximately 0.1 cubic foot of air per minute per bushel for dry grain (under 15%).

Ducts placed at the front and back ends of the pile should extend approximately 70 feet beyond the grain. For large piles (length of the long axis is greater than 200 feet), ventilation of the pile core may be accomplished by running ducts in from the sides and intersecting at the center of an 80-foot duct running parallel to the long axis, thus forming a T-shape.