U.S. crop production pushing grain storage capacity
In Missouri, Brownfield Ag News reported that an agricultural economist with the University of Illinois says continued production gains are putting U.S. grain storage capacity at a premium.
Joe Janzen says last year’s record crop pushed total storage capacity utilized to 80%, a new record.
“Where the potential demand for storage, where we have a big crop and maybe big carry in stocks, where that might exceed available capacity.” He says, “If it happens, we think that’s going to put pressure on farmers to find a home for that crop and ultimately put pressure on basis.”
He says storage capacity grew parallel with production up until 2020, but has stagnated since.
“Even when the crop maybe isn’t as big as it could be, even then, we’re sort of at the upper end, so we’re pushing that infrastructure maybe a little bit harder than we have in the past, and that creates a vulnerability,” he added.
Category: Food & Agriculture
