By Jamie Martin
Grain storage systems are essential to the smooth functioning of US agriculture. They allow farmers and grain merchants to manage price changes over time and move crops efficiently to buyers. Without sufficient storage, supply chains can face delays and added costs.
Between 2000 and 2019, storage capacity and crop production expanded together. Storage increased by roughly 349 million bushels each year, closely matching production growth. This balance ensured that grain markets operate efficiently says Joe Janzen from the University of Illinois Department of Agricultural and Consumer Economics.
Since 2020, that balance has changed. Capacity growth has nearly stopped, increasing only slightly over six years. At the same time, production remains strong. The 2025 crop, driven by record corn yields and large planted area, brought production close to available capacity.
As of December 1, 2025, on-farm storage utilization reached 80%. Off-farm facilities stood at 65%. Over the past decades, December utilization has climbed from about 60% to nearly 70% on average. Farmers now carry a larger share of stored grains compared to earlier years.
Although not all crops are harvested at the same time, high utilization can still create risks. Storage can be temporarily expanded using bags or ground piles, but these are short-term solutions. Fixed facility locations may also limit flexibility if grain must travel long distances.
The key concern is whether tighter storage will create bottlenecks that influence grain prices. Transportation limits, such as disruptions along major waterways, have previously led to sharp price differences between regions.
Investment decisions remain uncertain. Higher building costs, increased interest rates, and unpredictable storage returns may discourage expansion. Storage capacity often earns modest returns in normal years but becomes valuable during supply shocks.
The U.S. grain sector must now evaluate whether current infrastructure can support future production growth. Careful planning and strategic investment may be needed to maintain market stability and protect farmer income in the years ahead.
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Categories: National