2_Grain_Storage.ppt

1
Grain Storage
&
Management Practices
Iowa State University
Extension Copyright©2006 12/4/2006

2
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.

3
• 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?

4
• 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.

5
Source: Iowa Corn Promotion Board

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

7
Production and Corn Usage
Summary
Statistics
n
Ethanol
Produced
mil gal/yr
Corn Used
mil bu/yr
DGS
000 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 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

11
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 and Management Practices Training Model
Grain Storage Challenges --- Supplying the Ethanol Industry
Farm Elevator
Ethanol
Plant
Commercial
Commercial
No Yes
Condominium
Conventional
7 to 14 Days
Conventional
No
Sell
Store
Build
Temporary
Yes
How much needed
Kind of capacity
Kind of drying
How
Meets delivery cycle
Build new
How much needed
Kind of capacity
Kind of drying
GEAPS 520 Training

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• 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
questions.
Farm-Elevator-Ethanol

17
–Ethanol plant
questions.

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• Farm – Grain Storage
• Do I have storage?
• No
• Yes

19
• No
• Temporary
• Need to build storage?
• No
• Yes

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• No
• Temporary
• There needs to be more decision
information here - hes

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• No
• 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

22
• No
• Yes
- How much is needed
- How many bushel capacity?
- How many bins and size?
- What is the cost for capacity
- Facility designs

23
• No
• Yes
- What kind of capacity is needed
- Capacity in one or more bins
- Capacity of conveyer or auger
- Capacity of dump
- Equipment selection

24
• No
• Yes
- Do I need drying capabilities
- Dryer capacity
- Bin air flow capacity
- Equipment Selection
- Grain flow and capacity

25
• No
• Yes
- Do I need delivery capacity
- Dump pit
- Bin structure
- Conveyer and Leg
- Delivery equipment - trucks

26
• No
• 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

29
• Yes
• Deliver all or part to elevator
- Commercial options
- Delivery schedules
- Physical management

30
• 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

31
• Yes
• How much is needed
• How many bushel capacity?
• How many bins and size?
• What is the cost for capacity
• Will old and new mesh?

32
• Yes
• What kind of capacity is needed
• Capacity in new and old bins
• Capacity of conveyer and aguer
• Capacity of dump

33
• Yes
• Do I need drying capabilities
• Dryer capacity
• Bin air flow capacity

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• Yes
• Do I need delivery capacity
• Dump pit
• Bin structure
• Conveyer and leg

35
• Yes
• 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

38
Iowa Grain Quality Initiative
www.iowagrain.org
Howard Shepherd
howard@iastate.edu

2_Grain_Storage.ppt

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