OFA pleased with grain storage investment

Jul 19, 2018

A co-op is investing $1.7 million to increase grain storage by 170,000 bushels

By Diego Flammini
Staff Writer
Farms.com

The Ontario Federation of Agriculture (OFA) is happy to see investments into grain storage in northern communities.

The Co-opérative Régionale de Nipissing Sudbury has committed $1.7 million to upgrade the storage capacity at the Temiskaming Agriculture Centre in Thrornloe, Ont.

The five-bin construction project will increase grain storage at the facility by about 170,000 bushels.

Investments into ag infrastructure are important in making sure Ontario producers remain competitive, said Mark Kunkel, the northern Ontario director with the OFA.

“There was a need for more wet grain storage to meet the needs of the local farmers and to build towards the future,” he told Farms.com today. “The potential for growth is there.”

Once the upgrades are complete, farmers could save money in trucking costs.

Grain producers paid a provincial average of about 16 cents per bushel in trucking fees in 2015, OMAFRA says.

So, if a farmer’s average corn yield was 175 bushels per acre on a 200-acre farm, that farmer would have paid about $5,600 to get their grain to an elevator.

“Not only would farmers save a little bit of money, but storing more grain might also give them the opportunity to market their crops when the markets are at higher prices,” Kunkel said.

The construction also signals that the ag industry may be changing the way it handles some issues.

Sometimes, the industry waits until there is an issue before making necessary corrections. That isn’t the case this time, Kunkel said.

“Usually we’re reactive and not proactive,” he said. “In this case (the co-op) is being proactive in addressing grain storage issues before every other bin is filled.”

In addition to the grain tower construction, the 4,000-member co-op is hiring more staff to support farmers.

The co-op “hired two new crop specialists as salespeople and to work with the farmers who produce the crops,” Kunkel said. “The growth here isn’t rapid but there is an increasing need in this area for people to work in ag.”

Co-opérative Régionale de Nipissing Sudbury photo

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