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
China-led demand continues to anchor soybean and sorghum exports despite weekly swings.
Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
RealAg Radio host Shaun Haney says farmers there are already sounding the alarm about what this could mean for the future of ag research.
Global pork production is expected to rise in the first half of 2026, despite trade volatility stemming from shifting import policies and swine disease pressures.
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.
Economists are also closely watching how policy decisions in Washington could influence markets moving forward. Analysts say deferred futures for corn, soybeans, and wheat suggest markets are operating near break-even levels, not at prices that would encourage expanded production.

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:

From rising trade tensions in Europe to a pending Supreme Court decision on tariffs and shifting demand from China, global trade policy spearheaded by President Donald Trump continues to shape the outlook for U.S. agriculture—adding uncertainty as farmers navigate another volatile year.
Congressional leaders signal momentum toward expanded, targeted farm aid to help producers manage losses and cash-flow stress in 2026.
Livestock strength is carrying the farm economy, while crop margins remain tight and increasingly dependent on risk management and financial discipline.
Freight volatility and route selection remain critical to soybean export margins and competitiveness.
Strong balance sheets still matter, but liquidity, planning, and lender relationships are critical as ag credit tightens, according to analysis from AgAmerica Lending.
Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.