Grain Storage Growth Stalls as Crop Production Rises

Tight storage could widen basis and limit marketing flexibility.

Kris_Walker_05_26_15_USA_IA_WALKER_FARM_031.jpg

FarmHER Kris Walker (Walker Family Farms in Iowa City, Iowa)

FarmHER, Inc.

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.

To learn more, visit: www.farmdocdaily.com

Related Stories
Thailand will not replace major corn buyers overnight, but renewed access could create another outlet for U.S. corn demand.
Kentucky Farm Bureau President Eddie Melton joins us to discuss fertilizer affordability concerns, Senate Agriculture Committee testimony, and spring planting conditions in Kentucky.
Mike Steenhoek with the Soy Transportation Coalition joins us to discuss the proposed federal gas tax suspension, fuel cost pressures, and what the policy could mean for agriculture and transportation.
Agri Stats would no longer be allowed to show participant lists, rankings, or “flags,” and it could only report individual company data in narrow situations.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Labor supply may shift, but uncertainty remains for producers.
Spring Fieldwork Expands While Weather Challenges Persist Nationwide
Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.
Hiring may ease slightly, but labor shortages remain persistent.
Price volatility is driving shifts in demand and supply innovation.
RealAg Radio host Shaun Haney explains shifting global trade dynamics and what they could mean for agriculture and energy markets.