The landscape is currently littered with grain bags, and no doubt every silo you see scattered around the country is full to the brim.
All in all, a great result for the grower and a solid advocation for the efficiency of the supply chain.
However, as happens often in big years, the topic of on-farm storage floats to the surface, with one surprising dynamic this year.
The interest in grain sheds as an option for on-farm storage has seemingly found a renewed vigour.
There is no doubt we have seen a huge increase in the level of on-farm storage capacity in the past decade, with silo storage being the preferred option for most growers, and more recently grain bags have captured a large portion of the market.
But what of the long-forgotten grain shed?
As with all storage options there are pros and cons and certainly no ‘one size fits all approach’, but with increased interest in grain sheds as a versatile, long term and cost-effective method of bulk grain storage, it is worth considering in your analysis.
Some of the upsides of having a grain shed as part of your on-farm storage setup include:
Capacity – Grain sheds provide an excellent bulk storage option with much larger capacity for storage than individual silos or grain bags.
Efficiency – Given the speed at which crops can be harvested these days, grain sheds can provide a more efficient option than bags and silos in keeping up to harvest pace.
Customisation – A grain shed can be built to your individual size, access and operational requirements.
Versatility – When silos are empty, they add little value operationally. Grain sheds can provide alternative storage options for things such as machinery and fertiliser and can be used for a variety of other operational value adds.
Cost – When broken down to a dollar-per-tonne cost over time, grain sheds provide an excellent return on investment.
Capital Cost Comparison – On Farm Storage
Fixed cost – silos $20,000, grain bag $60,000, grain shed $220,000.
Capacity, mt – silos 100, grain bag 1000, grain shed 3000.
Estimated usable life – silos 25, grain bag 15, grain shed 25.
Dollar per mt – silos $8, grain bag $4, grain shed $2.93.
• Please note, the above does not account for variable or operational costs, or the value add of alternative storage options or use of a shed.
Grain sheds have, over time, fallen out of consideration as a long-term bulk storage option for many growers, however on analysis, prove to be a cost effective and versatile option when considering your storage set-up.
Given the significant increase in interest recently, it would appear many growers are starting to agree.
After all, as a grower who is an advocate of grain sheds said this week: “I’ve never seen a spray rig parked in a silo.”
Daniel Duggan is a consultant for Entegra
Signature Structures.
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The entire February 24, 2021 edition of The Weekly Advertiser is available online. READ IT HERE!
The entire February 24, 2021 edition of AgLife is available online. READ IT HERE!