A large crop of corn combined with falling prices may spur farmers to seek and purchase more grain storage facilities.
Grain storage companies are reporting that it is difficult to keep up with demand, according to a report from Valley News Live, based out of Fargo, ND.
Trevor Meier, marketing and sales director with Superior Inc., told the Valley News that his grain storage company plans to install about 250 bins per year but with demand this year, the company could have installed between 400 and 500 bins. “We could sell 100 more bins to farmers out there if we just had people to build them,” said Meier.
Some storage companies are increasing capacity. Kansas-based Tank Connection recently announced plans to increase production by 50% and hire nearly 40 more employees in the fourth quarter of 2014.
North Dakota is not the only state that is facing this issue – other states are also working to find space and storage for corn because of surplus corn production, rail issues, and other factors. Corn prices have slumped since spring with farmers opting to hold onto it, rather than sell it for a loss.
The state of Missouri’s agricultural department is in contact with farmers to offer assistance with some farms turning facilities such as sheds and barns into places to store corn, according to the High Plains Journal.
Farmers and companies are expected to store their corn supplies as the price for corn remains low because of a large crop of corn grown this summer, according to a report from the Associated Press. The USDA reported that nearly 12 billion bushels of corn were stored in 2012, according to the AP article.
Scott Irwin, a University of Illinois professor of agricultural and consumer economics, told the Associated Press that, “Either through permanent or temporary storage, you're going to see huge quantities going into storage.”
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