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Grain Handling and Storage Costs in Country Elevators

Grain Handling and Storage Costs in Country Elevators 2025

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The document discusses the significant increase in grain handling and storage costs at country elevators, driven by rising commodity prices, labor rates, and utility costs. It highlights the need for accurate cost measurement for effective management and pricing strategies. The study reviews previous research on handling costs, emphasizing economies of scale and the impact of fixed versus variable costs. A new cost estimation template developed by Oklahoma State University is introduced to help managers analyze their expenses. The findings indicate that grain handling costs have risen by 25-40% from 2005 to 2008, primarily due to increased shrinkage and moisture loss, necessitating adjustments in pricing strategies.

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What is the average cost of a grain bin?

How Much Does On-Farm Grain Storage Cost? A typical storage bin of 30,000 bushels can cost around $70,000, which translates into about $2.33 per bushel.

How much does grain storage cost?

Bins alone rent for about 14 cents per bushel, bins with electricity rent for about 20 cents per bushel, and an entire grain handling facility rents for 26 cents per bushel.

How much does a grain elevator cost?

Capital investment estimates for the corn-soy- bean model elevators range from about $2.0 million for a 25-car loadout model to about $5.5 million for a 100-car loadout model.

How much does a grain shed cost?

A 30m x 18m grain shed stores 1,500 tonnes and costs approx. $150 $190 / tonne. A 36m x 24m grain shed stores 3,000 tonnes and costs approx. $130 $160 / tonne.

Do grain elevators make money?

Elevators sometimes buy corn at a low basis, anticipating that over time, basis will improve. The basis, as well as transaction, handling and dryer fees, are the main ways that the elevator makes money rather than through changes in the futures price.

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How do you calculate grain storage?

Storage Capacity for Grains, Forages and Liquids Diameter - distance across a round structure. Bushels = Pi x diameter x diameter x average depth of grain (all in feet) x density, or. Bushels = width x length x average depth of grain (all in feet) x density (same values as previous)

How much storage does a grain elevator hold?

Figure 1 shows NASS-estimated US grain storage capacity since 1988. In 2019, national grain storage capacity was approximately 25 billion bushels.

Grain Handling and Storage Costs in Country Elevators 2025

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What is the average cost of a grain bin?

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How much does a grain elevator cost?

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