1. Grain Storage & Management Practices
Iowa State University
Extension Copyright© /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
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

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 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
Announced 33
2975.0
1062.5
9031.3
Total
7544.5
2676.8
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.

8. Corn consumption and storage
Approximately 500 million more bushels used for wet milling non-ethanol production.
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
Farm
Elevator
Ethanol plant
Follow the link to storage and management questions.

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

17. Grain Storage & Management Practices
Grain storage and management practices
Ethanol 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?
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 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

22. 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

23. 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

24. 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

25. 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

26. 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

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