Grain Storage Cost Calculator
Determine whether storing grain after harvest is financially worthwhile by comparing the net gain from a higher future price against storage, drying, and interest carrying costs. Best used at harvest time when making sell-or-store decisions.
About this calculator
The calculator computes net profit from storing grain versus selling at harvest using: Net Gain = grainQuantity × (expectedPrice − harvestPrice − storageCost × storageMonths / 12 − harvestPrice × interestRate / 100 × storageMonths / 12). The first term inside the parentheses, expectedPrice − harvestPrice, is the gross price appreciation you are targeting. From that, two cost streams are subtracted. Storage cost × storageMonths / 12 converts an annual $/bu storage rate into a cost for the actual holding period. The interest component, harvestPrice × interestRate / 100 × storageMonths / 12, represents the opportunity cost of capital tied up in unsold grain, calculated as simple interest on the harvest-time value. A positive result means storing is profitable; a negative result means selling at harvest is the better choice.
How to use
You have 10,000 bushels of soybeans. Harvest price is $12.00/bu, and you expect to sell in 6 months at $13.00/bu. Storage costs $0.03/bu/month, and your annual interest rate is 6%. Storage cost portion = $0.03 × 6 = $0.18/bu. Interest cost = $12.00 × 0.06 × (6/12) = $0.36/bu. Net gain per bushel = $13.00 − $12.00 − $0.18 − $0.36 = $0.46/bu. Total net gain = 10,000 × $0.46 = $4,600. Storing is profitable in this scenario. If the expected price were only $12.50, the net gain would be −$0.04/bu, making immediate sale the better option.
Frequently asked questions
How do I determine the right expected sale price to use in the grain storage calculator?
The expected sale price should reflect your best estimate of market conditions at the end of your planned storage period, not a wish price. Useful data sources include nearby futures contract prices adjusted for local basis, USDA supply and demand reports (WASDE), and historical seasonal price patterns for your crop. Many extension economists publish seasonal price indices showing the average price gain from harvest to spring for corn, soybeans, and wheat. Remember that basis can narrow or widen independently of futures, so monitoring your local elevator's posted bids over time will give you the most relevant reference point.
What costs are often overlooked when calculating grain storage profitability?
Farmers frequently forget to include shrinkage (grain loses weight as it dries in storage), quality risk (mycotoxin development or grading discounts on old-crop grain), and the cost of aeration electricity. Drying costs to reach safe storage moisture are also significant — each point of moisture removal costs roughly $0.03–$0.05 per bushel depending on fuel prices. This calculator captures storage facility costs and interest carrying costs, but you should add drying and shrink estimates manually if your grain is going into the bin above 13–15% moisture. Insurance on stored grain is another line item worth including for large volumes.
When does on-farm grain storage make more financial sense than commercial storage?
On-farm storage generally makes more sense once your facility is paid off, because you eliminate the elevator's monthly storage and conditioning fees, which typically run $0.03–$0.05/bu/month. It also gives you marketing flexibility — you can sell into a basis rally or futures spike without incurring re-ownership costs. However, if you are still servicing debt on bin infrastructure, the true cost of storage may exceed commercial rates. On-farm storage is most advantageous for high-volume operations with consistent carry in the futures market (when deferred contracts trade at a premium to nearby contracts), signaling the market is paying you to store.