Stagnant infrastructure growth raises supply chain concerns
Grain storage infrastructure plays a vital role in the U.S. agricultural system. Bins, elevators, bunkers, and sheds allow farmers and grain companies to store crops when prices are low and sell when prices improve. Storage also helps move grains efficiently from farms to processors and export terminals.
From 2000 to 2019, U.S. grain storage capacity increased steadily alongside crop production. Both grew at nearly the same rate, about 350 million bushels per year according to Joe Janzen from the University of Illinois Department of Agricultural and Consumer Economics. By 2019, total storage capacity exceeded 25 billion bushels. During this period, capacity appeared properly sized to meet production needs.
However, since 2020, this growth has slowed sharply. Storage capacity has increased only slightly, while production continues to rise. In 2025, strong corn yields and high acreage pushed total production close to national storage limits. Surplus capacity fell to just 5%, compared to the long-term average of 15%.
Recent data show that 80% of on-farm storage was used as of December 1, 2025. Off-farm facilities reported lower use at 65%, but overall utilization has steadily increased over time. Farmers are now storing more grains on their own farms than in previous decades.
Higher capacity to use raises important questions. When does high utilization create bottlenecks in transportation and marketing? Shipping challenges, such as low water levels on the Mississippi River, have previously caused price swings between inland and export markets. Similar pressures could occur if storage becomes too tight.
Several factors may explain the slowdown in storage investment. Construction costs and interest rates have risen since 2020. Storage returns are uncertain and depend on market conditions. Investors may hesitate if the benefits are unpredictable.
Although the U.S. still has significant storage infrastructure, current trends suggest tighter margins. The grain industry must consider whether future production growth will require renewed investment to maintain supply chain efficiency and protect farmer marketing opportunities.
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