Strain on Grain: AFBF Economist Breaks Down Growing Storage Capacity Issues

Large carryover stocks continue to put pressure on commodity prices, creating uncertainty for growers looking to market their grain.

WASHINGTON (RFD-TV) — As harvest moves forward across the country, farmers are facing mounting challenges tied to record crop yields, slowing export demand, and rising transportation and storage costs.

According to American Farm Bureau Federation (AFBF) economist Bernt Nelson, the combination of strong production and large carryover stocks continues to put pressure on commodity prices, creating uncertainty for growers looking to market their grain. He joined us on Thursday’s Market Day Report to discuss what these factors mean for U.S. agriculture as harvest continues.

In his interview with RFD-TV News, Nelson said many producers are now weighing their storage options, as bins fill up quickly after back-to-back bumper crops. The tight storage situation, coupled with expensive freight rates, is forcing some to consider alternative marketing strategies or off-farm storage—both of which can eat into profits.

While abundant supply typically benefits consumers, Nelson notes that it is contributing to softer price trends in many markets, leaving farmers hoping for stronger demand signals in the months ahead.

Related Stories
Record ethanol demand continues supporting corn markets and rural economies.
Purdue University’s Dr. Michael Langemeier discusses the survey’s findings in February and broader signals in the months ahead.
Roger McEowen of Washburn University School of Law joined us to discuss key legal and tax issues ranchers should consider as they recover from recent prairie fires across the Southern Plains.
Pennsylvania Secretary of Agriculture Russell Redding discusses the recent surge in bird flu cases, the state’s expanded biosecurity response and efforts to support poultry producers.
China may no longer serve as a consistent anchor market for U.S. cotton exports. Lewis Williamson of HTS Commodities joined us to discuss the factors influencing planting decisions, river conditions, and what producers are considering as they finalize acreage plans for the season.
Falling commodity prices and rising costs continue to squeeze farm margins. Kip Jacobs with The Mosaic Company addresses fertilizer market pressures, nutrient use efficiency, and strategies growers can consider to protect their fertilizer investment this season.

LATEST STORIES BY THIS AUTHOR:

Colorado Congressman Jeff Hurd joins Champions of Rural America to share insights into the Western Caucus legislative priorities as they champion wildfire prevention and mitigation in the West.
Britt Hilton with the Oklahoma Farm Bureau joined us to discuss current conditions, producer impacts, and the road to recovery following the Ranger Road Fire.
National FFA Southern Region Vice President T. Wayne William talks about Wear Blue Day, the history of the blue jacket, and why the tradition continues to inspire pride and connection among FFA members nationwide.
The closure of Lubbock Feeders highlights mounting pressure on the U.S. cattle supply, according to the Texas Cattle Feeders Association, as border restrictions and costs strain feedyards.
From projected drops in input costs to biofuel expansion and the USDA’s new “One Farmer, One File” initiative, Ag Secretary Brooke Rollins shared key policy priorities at Commodity Classic that put farm issues back in the spotlight.
NCBA Chief Counsel Mary-Thomas Hart discussed the legal process behind delisting the prairie chicken, the challenges ranchers faced under the bird’s previous protections, and the benefits of cooperative habitat management for both livestock and wildlife.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.