Grain bin manufacturers and contractors will be rolling up their sleeves for the foreseeable future.
“On-farm storage demand is through the roof,” noted Nathan Luff, a Sukup/Brock dealer in Missouri. His take reflects industry vibes that demand this heavy hasn’t been seen in 10+ years.
How we got here: With the price of corn and soybeans soaring to recent highs and a solid 2020 harvest for most, many farmers are flush with money and are looking for a place to stash that cash. Hello, grain storage.
But it’s not just corn and soybean farmers who are driving demand…
- Wheat prices are up.
- Rice farmers had a strong production year.
- Even pistachio growers, who are experiencing record production, need – you guessed it – grain bin components.
And that’s not all. When the derecho ripped through the Midwest last August, it damaged or destroyed 120 million bushels of grain storage in Iowa. Bin builders are playing catch up like mad.
Add in strong export demand from China and commercial grain traders are begging for more storage, too.
Bottom line: With dealers booked solid through late summer and demand funneling from all corners of the industry, wildly long waitlists will become the 2021 norm.