URBANA, Ill. (RFD NEWS) — Farmers may face wider basis swings and higher marketing risk as U.S. grain storage expansion has effectively stopped while crop production continues to grow. Economists at the University of Illinois warn that the imbalance could create bottlenecks across the supply chain from farm bins to export terminals.
From 2000 to 2019, national storage capacity increased about 350 million bushels annually, closely matching production growth. Since 2020, capacity has barely increased—only about 337 million bushels in six years—even as large crops returned. The 2025 harvest pushed storage utilization to some of the highest levels in decades, with on-farm bins about 80 percent full as of December.
Higher utilization increases the risk that transportation disruptions—such as low Mississippi River levels— will amplify local price discounts. Farmers are increasingly carrying more grain on-farm, shifting storage responsibility away from elevators while investment in new infrastructure slows.
Analysts point to higher construction costs, elevated interest rates, and uncertain returns as reasons expansion stalled.
Ethanol exports are expanding on strong demand from Canada and Europe, while DDGS shipments remain broad-based and supportive for feed markets.
November 20, 2025 11:12 AM
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Dalton Henry, with U.S. Wheat Associates, joined RFD-TV to provide insight on what the pending trade frameworks may mean for American wheat growers.
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A massive rail merger could significantly impact North American agriculture and trade flows.
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Urea and phosphate see the biggest price relief from tariff exemptions, but nitrogen markets remain tight, and spring demand will still dictate pricing momentum.
November 19, 2025 12:31 PM
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Cattle and hog supplies continue to tighten while dairy output expands, creating a split outlook in which red-meat prices soften and milk values come under pressure from larger supplies.
November 18, 2025 03:02 PM
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Hunter Biram, an extension economist with the University of Arkansas, is tracking Mississippi River water levels as grain shippers shift their focus to transportation following the wrap-up of fall harvest.
November 18, 2025 01:24 PM
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With feed supplies running tight, producers can tap into some creative options, according to University of Pennsylvania Veterinarian and Professor Dr. Joe Bender.
November 18, 2025 01:13 PM
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Firm live cow prices and shifting dairy-side culling suggest cull cow values may stay stronger than usual this winter despite weaker cow beef cutout trends.
November 18, 2025 01:02 PM
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Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, November 17, 2025.
November 17, 2025 05:05 PM
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