The Cost of On-farm Grain Storage

A spreadsheet program has been developed to calculate the annual physical costs of farm grain storage. It includes the costs of storage and handling equipment, delivery, erection, insurance, labour, maintenance and grain insect control. The physical costs of storage for a representative range of new silos and sheds have been calculated using the spreadsheet and are presented. The significance of the opportunity cost of interest foregone on grain that is stored rather than sold is demonstrated, and the total costs of storing grain for periods of up to a year are calculated.