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

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.

Grain Storage & Management Practices 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?

Grain Storage & Management Practices 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.

Source: Iowa Corn Promotion Board 18 Red – Dry Grind plants in operation 17 Green – Dry Grind plants in construction or planning 3 Black – Wet mill ethanol (some missing, ADM and Penford) 1 Blue – Wet mill in construction (Tate and Lyle) Source: Iowa Corn Promotion Board

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

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 2.7 billion gallons including all dry mill ethanol producers above and 270 mil gal from those outside Iowa. Then add 435 mil gallons ethanol from wet mills not including Tate and Lyle. Divide by 2.8 and you get about 1.2 bil bu corn, then… Add to that approximately 500 million bu for wet milling *Operating at actual capacity, approximately 5-10% over rated capacity. **Plants in bordering counties of other states with 50% use assigned to Iowa corn.

Corn consumption and storage Approximately 500 million more bushels used for wet milling non-ethanol production. Distillers Grains storage 2.62%

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

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

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

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.

Grain Storage & Management Practices

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

Grain Storage & Management Practices Grain storage and management practices Farm Elevator Ethanol plant Follow the link to storage and management questions.

Grain Storage & Management Practices Grain storage and management practices Elevator Follow the link to storage and management questions. Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain storage and management practices Ethanol plant Follow the link to storage and management questions. Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Yes Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Temporary Need to build storage? Yes Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Temporary There needs to be more decision information here - hes Farm-Elevator-Ethanol

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 Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - How much is needed - How many bushel capacity? - How many bins and size? - What is the cost for capacity - Facility designs Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - What kind of capacity is needed - Capacity in one or more bins - Capacity of conveyer or auger - Capacity of dump - Equipment selection Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - Do I need drying capabilities - Dryer capacity - Bin air flow capacity - Equipment Selection - Grain flow and capacity Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - Do I need delivery capacity - Dump pit - Bin structure - Conveyer and Leg - Delivery equipment - trucks Farm-Elevator-Ethanol

Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - What economic tools are available - Scenarios – 3 or 4 - Spread Sheets Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Storage meets present needs Need to build more storage Physical Management of Grain Safety Management Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Storage meets present needs Deliver all to elevator Deliver part to elevator and store rest on farm for later sale Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Storage meets present needs Deliver all or part to elevator - Commercial options - Delivery schedules - Physical management Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? 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

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? 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? Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? 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 Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Need to build more storage? Do I need drying capabilities Dryer capacity Bin air flow capacity Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Need to build more storage? Do I need delivery capacity Dump pit Bin structure Conveyer and leg Farm-Elevator-Ethanol

Grain Storage & Management Practices Grain Storage at the farm Do I have storage? Yes Need to build more storage? What economic tools are available Scenarios – 3 or 4 Spread Sheets Farm-Elevator-Ethanol

Grain Storage & Management Practices SAFETY Electric Safety Ladder Safety Sweep auger Safety Bin entry Safety Grain Safety ICASH and Farm Safety Farm-Elevator-Ethanol

Grain Storage & Management Practices Acknowledgments Copyright © 2006 – Iowa State University of Science and Technology – All rights reserved Iowa State University – Extension – Iowa Grain Quality Initiative – www.iowagrain.org Farm-Elevator-Ethanol

Grain Storage & Management Practices Iowa Grain Quality Initiative www.iowagrain.org Howard Shepherd howard@iastate.edu