Soybean growers aren’t worried about storage

Oct 22, 2018

Farmers are confident there’s enough storage to handle large harvests

By Diego Flammini
Staff Writer
Farms.com

American farmers are not concerned about a lack of soybean storage despite slowed trade with the country’s largest customer.

The soybean market is caught in a months-long trade war between China and the U.S. Last week, for example, private exporters cancelled sales of about 180,000 tons of U.S. soybeans destined for China, Reuters reported.

Decreased trade means producers and processors will require more domestic storage for soybeans. Growers are optimistic, however, existing facilities can accommodate the increased loads.

“Bean yields in my area are probably above average,” Tom Griffiths, president of the Indiana Soybean Alliance and soybean producer from Kendalville, Ind., told Farms.com. “But the storage is going to be there for us. It hasn’t been much of a talking point around here.”

Alan Meadows, a producer from Halls, Tenn., and president of the Tennessee Soybean Association, is also confident in the amount of storage available.

“There’s no doubt there will be a lot of beans in storage, but I don’t think there’s going to be a (storage) shortage where we are,” he told Farms.com.

Some growers, however, are taking extra precautions.

Producers in Nebraska have invested in on-farm storage to ensure they’ve got somewhere to put their crop, said Robert Johnston, a grower from Clearwater, Neb., and president of the Nebraska Soybean Association.

“I didn’t purchase a new bin, but I know of about a handful of new bins that have been built,” he told Farms.com.

Commercial grain storage facilities are also investing in increased capacities, he said.

“The local co-op that I use have increased their ground storage,” Johnston said. “We’ve got beans stored there and I know some of my neighbors do as well, so I think there will be enough storage for us this year.”

Producers in other states, however, may find themselves with storage limitations.

Louisiana Congressman Dr. Ralph Abraham wrote a letter to Sonny Perdue on Oct. 2 asking the agriculture department to help soybean farmers who have high yields and no storage options.

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