1 Grain Storage & Management Practices Iowa State University Extension Copyright©200612/4/2006

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 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?

4 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.

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 * Plants, expansions under construction Wet Mills Nearby, Iowa Draw** Subtotal Announced Total *Operating at actual capacity, approximately 5-10% over rated capacity. **Plants in bordering counties of other states with 50% use assigned to Iowa corn.

8 Corn consumption and storage Distillers Grains storage 2.62%

9 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

10 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

12 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.

13 Grain Storage & Management Practices

14 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

15 Grain Storage & Management Practices Grain storage and management practices –FarmFarm –ElevatorElevator –Ethanol plantEthanol plant Follow the link to storage and management questions.

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

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

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

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

20 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

21 Grain Storage & Management Practices Farm – Grain Storage Do I have storage? No Need to build storage? Yes - How much is neededHow much is needed - What kind of capacity is neededWhat kind of capacity is needed - Do I need drying capabilitiesDo I need drying capabilities - Do I need delivery capacityDo I need delivery capacity - What economic tools are availableWhat economic tools are available Farm-Elevator-Ethanol

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

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

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

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

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

27 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

28 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 saleDeliver part to elevator and store rest on farm for later sale Farm-Elevator-Ethanol

29 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

30 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

31 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

32 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

33 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

34 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

35 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

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

37 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 – Farm-Elevator-Ethanol

38 Iowa Grain Quality Initiative Howard Shepherd Grain Storage & Management Practices