U.S. grain storage capacity has stalled out since 2020 after two decades of growth, according to a University of Illinois analysis.
Storage capacity increased by about 350 million bushels per year from 2000 to 2019, economist Joe Janzen found in his study.
Since 2020 about 69% of on-farm storage is used on average, compared to 61% of off-farm storage.
Janzen said it isn’t clear why the growth stopped.
“Possible relevant factors include increased construction costs and higher interest rates in the post-2020, post-Covid economy, concerns about future production growth, and the irregular and unpredictable nature of grain storage demand,” he said in his report. “It may be difficult to justify investment in storage capacity when the timing and magnitude of benefits are uncertain."
