Where Will All the Corn Go?
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Every fall, farmers across the country harvest millions of bushels of corn, soybeans, and other crops. But once the crops are out of the field, a new challenge begins: where to store all that grain? (Photo by Hannah Shedrow on Unsplash)
AMES, Iowa — Every fall, farmers across the country harvest millions of bushels of corn, soybeans, and other crops. But once the crops are out of the field, a new challenge begins: where to store all that grain?
In 2025, we’re expecting a record-breaking corn harvest in Iowa. That’s great news—but it also means farmers need to think ahead about where the crop will go and how to manage it wisely.
- Commercial Grain Storage
One option is to store grain at a commercial facility. These are large grain elevators or warehouses that charge a fee to hold the crop. While convenient, commercial storage has become more expensive in recent years. Farmers who choose this route often try to make the most of market conditions—like waiting for better prices or locking in deals that reduce risk. Tools like futures contracts or “Hedge-to-Arrive” agreements help farmers plan ahead and protect their profits.
- On-Farm Storage
Many farmers have their own grain bins on their property. Storing grain on the farm can be cheaper, but it comes with responsibilities and risks:
- Financial Costs: If a farmer stores grain instead of selling it right away, they might still owe money elsewhere and pay interest on those debts.
- Grain Quality: Poor storage conditions can lead to spoilage, which means lost income.
- Labor and Equipment: It takes time and effort to move grain in and out of bins, and older equipment may need repairs.
- Renting Space: Some farmers rent bins from neighbors. In those cases, it’s important to agree on who pays for electricity and upkeep.
No matter where the grain is stored, farmers need a plan for when and how they’ll sell it.
- Selling the Crop and Using Market Tools
There’s also a more advanced strategy: sell the crop right away and buy acall option. This is a financial tool that lets farmers benefit if prices go up later—without having to store the grain. It’s a way to stay in the market while avoiding storage costs and risks. However, this approach can have tax implications, so farmers should talk to a tax advisor before using it.
Final Advice: Make a Plan
Every farm is different, and there’s no one-size-fits-all solution. But with such a large crop expected this year, it’s more important than ever for farmers to plan ahead. Whether it’s storing grain, selling early, or using market tools, having a strategy can make a big difference.
Iowa State University Extension and Outreach offers resources to help farmers make smart decisions. Visit the Ag Decision Maker website and click on the “Crops” tab to learn more. extension.iastate.edu/agdm.
—Tim Christensen, ISU Extension
