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Grain Storage

&
Management Practices

Iowa State University 1


Extension Copyright©2006 12/4/2006
Grain Storage & Management Practices

• It is estimated by 2008, Iowa will need


115% of it’s present corn production to
meet the continued increase in Ethanol
Plant production.

• The ethanol industry has on average 7 to


14 days of corn storage capacity.

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Grain Storage & Management Practices
• Does Iowa have adequate grain storage
on the farm and at the elevator to meet the
requirements of the ethanol industry?

• Does grain storage management on the


farm meet the need for ethanol
production?

• Does grain storage management in the


elevator meet the needs for ethanol
production? 3
Grain Storage & Management Practices

• What evaluation tools are needed to


answer the questions for grain storage and
management practices?

• Does existing storage meet the needs of


the delivery cycle required by the ethanol
plant?

• A flow model will help answer questions of


storage needs. 4
Source: Iowa Corn Promotion Board 5
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Source: Robert Wisner, Dept. of Economics, Iowa State University
Production and Corn Usage
Ethanol
Summary Corn Used DGS
n Produced
Statistics mil bu/yr 000 tons/yr
mil gal/yr
Current Dry-grind
23 1448.0 514.3* 4386.6
Plants
Plants, expansions
16 1509.5 524.3 4456.4
under construction
Wet Mills 7 1210.0 432.1 3673.2
Nearby, Iowa
6 402.0 143.6 1220.4
Draw**

Subtotal 4569.5 1614.3 13736.6

Announced 33 2975.0 1062.5 9031.3

Total 7544.5 2676.8 22752.7

*Operating at actual capacity, approximately 5-10% over rated capacity. 7


**Plants in bordering counties of other states with 50% use assigned to Iowa corn.
Corn consumption and storage

Current capacity* Corn Usage* Corn Storage* Corn Percent*


(mil gal) (million bu) (thousand bu) (storage/usage)
Minimum 24.0 8.6 220 1.87 %
Maximum 120.0 42.9 5,500 59.23 %
1,214 7.79 %
Average 64.6 22.4
(4.38%)**
Std. Dev. 27.6 10.1 1,108 12.54 %
27,920
Sum 1,448.0 516.1 n/a
19,420**
*Represents 23 dry-grind plants in 2006
**Without two “high storage” plants
Distillers Grains storage
2.62%

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Corn sources for ethanol plants
• 62% of corn is purchased directly from
farmers
• 16 plants purchase >50% of corn from
farmers
• 5 plants tied to local elevators; 60-95% of
corn comes from elevator

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Source: Robert Wisner, Dept. of Economics, Iowa State University
Farm and Commercial Storage
• Iowa has 1.65 billion bushels of on-farm storage
(NASS, 2005)
• Iowa has 1.08 billion bushels of commercial storage
(IDALS – Grain Warehouse Division, 2006)
Total – 2.73 billion bushels

– Plant managers encourage on-farm storage; premiums


structured for future delivery (2)
– On-farm storage less likely to be built where cash rented
land is prevalent
– Plan to include questions about on-farm storage in Iowa
Rural Life Poll in 2006-7
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Corn Quality
• US Grade #2 Yellow Corn - no premium for better
quality or special traits
• Moisture limit: 17% (a few take 18%)
• Test Weight low limit: 54 lb/bu
• Damage limit: 10% (discount from 5%)
• Broken Corn: 12% max
Producers must meet #2YC quality spec to sell to
ethanol plants. Otherwise, corn is rejected.

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Grain Storage & Management Practices
Grain Storage and Management Practices Training Model

Grain Storage Challenges --- Supplying the Ethanol Industry

Ethanol
Farm Elevator
Plant

No Yes Commercial Commercial

Conventional Conventional
Temporary Build Store Sell

Condominium 7 to 14 Days

No

Yes How Build new GEAPS 520 Training

How much needed How much needed


Kind of capacity Meets delivery cycle Kind of capacity
Kind of drying Kind of drying

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Grain Storage & Management Practices
• What are the storage requirements for grain
delivery to the ethanol plant
– Delivery cycle
• Will change farm storage requirements
• Will require contract delivery
– Moisture content
• No greater than 17 percent
– Quality factors
• Trash
• Aflatoxin
• Damage
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Grain Storage & Management Practices

• Grain storage and management practices


– Farm
– Elevator
– Ethanol plant

• Follow the link to storage and management


questions.

15
Grain Storage & Management Practices

• Grain storage and management practices


– Elevator

• Follow the link to storage and management


questions.

Farm-Elevator-Ethanol 16
Grain Storage & Management Practices

• Grain storage and management practices


– Ethanol plant

• Follow the link to storage and management


questions.

Farm-Elevator-Ethanol 17
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No

• Yes

Farm-Elevator-Ethanol 18
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Temporary
• Need to build storage?
• No
• Yes

Farm-Elevator-Ethanol 19
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Temporary

• There needs to be more decision


information here - hes

Farm-Elevator-Ethanol 20
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- How much is needed
- What kind of capacity is needed
- Do I need drying capabilities
- Do I need delivery capacity
- What economic tools are available
Farm-Elevator-Ethanol 21
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- How much is needed
- How many bushel capacity?
- How many bins and size?
- What is the cost for capacity
- Facility designs
Farm-Elevator-Ethanol 22
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- What kind of capacity is needed
- Capacity in one or more bins
- Capacity of conveyer or auger
- Capacity of dump
- Equipment selection
Farm-Elevator-Ethanol 23
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- Do I need drying capabilities
- Dryer capacity
- Bin air flow capacity
- Equipment Selection
- Grain flow and capacity

Farm-Elevator-Ethanol 24
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- Do I need delivery capacity
- Dump pit
- Bin structure
- Conveyer and Leg
- Delivery equipment - trucks

Farm-Elevator-Ethanol 25
Grain Storage & Management Practices
• Farm – Grain Storage
• Do I have storage?
• No
• Need to build storage?
• Yes
- What economic tools are available
- Scenarios – 3 or 4
- Spread Sheets

Farm-Elevator-Ethanol 26
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Storage meets present needs
• Need to build more storage
• Physical Management of Grain
• Safety Management

Farm-Elevator-Ethanol 27
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Storage meets present needs
• Deliver all to elevator
• Deliver part to elevator and
store rest on farm for later sale

Farm-Elevator-Ethanol 28
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Storage meets present needs
• Deliver all or part to elevator
- Commercial options
- Delivery schedules
- Physical management

Farm-Elevator-Ethanol 29
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• How much is needed
• What kind of capacity is needed
• Do I need drying capabilities
• Do I need delivery capacity
• What economic tools are available
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Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• How much is needed
• How many bushel capacity?
• How many bins and size?
• What is the cost for capacity
• Will old and new mesh?
Farm-Elevator-Ethanol 31
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• What kind of capacity is needed
• Capacity in new and old bins
• Capacity of conveyer and aguer
• Capacity of dump

Farm-Elevator-Ethanol 32
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• Do I need drying capabilities
• Dryer capacity
• Bin air flow capacity

Farm-Elevator-Ethanol 33
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• Do I need delivery capacity
• Dump pit
• Bin structure
• Conveyer and leg

Farm-Elevator-Ethanol 34
Grain Storage & Management Practices
• Grain Storage at the farm
• Do I have storage?
• Yes
• Need to build more storage?
• What economic tools are available
• Scenarios – 3 or 4
• Spread Sheets

Farm-Elevator-Ethanol 35
Grain Storage & Management Practices
SAFETY
• Electric Safety
• Ladder Safety
• Sweep auger Safety
• Bin entry Safety
• Grain Safety

• ICASH and Farm Safety

Farm-Elevator-Ethanol 36
Grain Storage & Management Practices
Acknowledgments
• Copyright © 2006 – Iowa State University of Science and Technology – All rights
reserved
• Iowa State University – Extension – Iowa Grain Quality Initiative – www.iowagrain.org

Farm-Elevator-Ethanol 37
Grain Storage & Management Practices

Iowa Grain Quality Initiative


www.iowagrain.org
Howard Shepherd
howard@iastate.edu

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