1 Grain Storage & Management Practices Iowa State University Extension Copyright©200612/4/2006.

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Grain Storage&

Management Practices

Iowa State University Extension Copyright©2006 12/4/2006

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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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• 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?

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• 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.

5Source: Iowa Corn Promotion Board

6Source: Robert Wisner, Dept. of Economics, Iowa State University

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Production and Corn UsageSummary Statistics

nEthanol Producedmil gal/yr

Corn Usedmil bu/yr

DGS000 tons/yr

Current Dry-grind Plants

23 1448.0 514.3* 4386.6

Plants, expansions under construction

16 1509.5 524.3 4456.4

Wet Mills 7 1210.0 432.1 3673.2

Nearby, Iowa Draw**

6 402.0 143.6 1220.4

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

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Corn consumption and storage

Current capacity* (mil gal)

Corn Usage* (million bu)

Corn Storage* (thousand bu)

Corn Percent* (storage/usage)

Minimum 24.0 8.6 220 1.87 % Maximum 120.0 42.9 5,500 59.23 %

Average 64.6 22.4 1,214

7.79 % (4.38%)**

Std. Dev. 27.6 10.1 1,108 12.54 %

Sum 1,448.0 516.1 27,920 19,420**

n/a

*Represents 23 dry-grind plants in 2006 **Without two “high storage” plants

Distillers Grains storage2.62%

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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

10Source: Robert Wisner, Dept. of Economics, Iowa State University

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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% maxProducers must meet #2YC quality spec to sell to

ethanol plants. Otherwise, corn is rejected.

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Grain Storage and Management Practices Training Model

Grain Storage Challenges --- Supplying the Ethanol Industry

Farm ElevatorEthanol

Plant

CommercialCommercialNo Yes

Condominium

Conventional

7 to 14 Days

Conventional

No

SellStoreBuildTemporary

Yes

How much neededKind of capacityKind of drying

How

Meets delivery cycle

Build new

How much neededKind of capacityKind of drying

GEAPS 520 Training


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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 and management practices

– Farm

– Elevator

– Ethanol plant

• Follow the link to storage and management questions.

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– Elevator


Farm-Elevator-Ethanol

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– Ethanol plant



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• Farm – Grain Storage• Do I have storage?

• No

• Yes


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• Farm – Grain Storage

• Do I have storage?

• No

• Temporary

• Need to build storage?

• No

• Yes


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• Farm – Grain Storage


• No

• Temporary

• There needs to be more decision information here - hes


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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


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- How much is needed- How many bushel capacity?- How many bins and size?- What is the cost for capacity- Facility designs


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- What kind of capacity is needed- Capacity in one or more bins- Capacity of conveyer or auger- Capacity of dump- Equipment selection


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- Do I need drying capabilities- Dryer capacity- Bin air flow capacity- Equipment Selection- Grain flow and capacity


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- Do I need delivery capacity- Dump pit- Bin structure- Conveyer and Leg- Delivery equipment - trucks


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• No

• Need to build storage?

• Yes- What economic tools are available- Scenarios – 3 or 4- Spread Sheets


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• Grain Storage at the farm


• Yes

• Storage meets present needs

• Need to build more storage

• Physical Management of Grain

• Safety Management


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• Yes


• Deliver all to elevator

• Deliver part to elevator and store rest on farm for later sale


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• Yes


• Deliver all or part to elevator

- Commercial options

- Delivery schedules

- Physical management


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• 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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• 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?


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• 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


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• Yes

• Need to build more storage?• Do I need drying capabilities• Dryer capacity• Bin air flow capacity


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• Yes

• Need to build more storage?• Do I need delivery capacity• Dump pit• Bin structure• Conveyer and leg


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• Yes

• Need to build more storage?• What economic tools are available• Scenarios – 3 or 4• Spread Sheets


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SAFETY

• Electric Safety

• Ladder Safety

• Sweep auger Safety

• Bin entry Safety

• Grain Safety

• ICASH and Farm Safety


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Acknowledgments • Copyright © 2006 – Iowa State University of Science and Technology – All rights reserved• Iowa State University – Extension – Iowa Grain Quality Initiative – www.iowagrain.org


http://www.iowagrain.org/

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Iowa Grain Quality Initiativewww.iowagrain.org

Howard [email protected]


1 Grain Storage & Management Practices Iowa State University Extension Copyright©200612/4/2006.

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