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2_Grain_Storage.ppt
- 1. 1 Grain Storage & Management Practices Iowa State University Extension Copyright©2006 12/4/2006
- 2. 2 Grain Storage & Management Practices • It is estimated by 2008, Iowa will need 115% of it’s present corn production to meet the continued increase in Ethanol Plant production. • The ethanol industry has on average 7 to 14 days of corn storage capacity.
- 3. 3 Grain Storage & Management Practices • Does Iowa have adequate grain storage on the farm and at the elevator to meet the requirements of the ethanol industry? • Does grain storage management on the farm meet the need for ethanol production? • Does grain storage management in the elevator meet the needs for ethanol production?
- 4. 4 Grain Storage & Management Practices • What evaluation tools are needed to answer the questions for grain storage and management practices? • Does existing storage meet the needs of the delivery cycle required by the ethanol plant? • A flow model will help answer questions of storage needs.
- 5. 5 Source: Iowa Corn Promotion Board
- 6. 6 Source: Robert Wisner, Dept. of Economics, Iowa State University
- 7. 7 Production and Corn Usage Summary Statistics n Ethanol Produced mil gal/yr Corn Used mil bu/yr DGS 000 tons/yr Current Dry-grind Plants 23 1448.0 514.3* 4386.6 Plants, expansions under construction 16 1509.5 524.3 4456.4 Wet Mills 7 1210.0 432.1 3673.2 Nearby, Iowa Draw** 6 402.0 143.6 1220.4 Subtotal 4569.5 1614.3 13736.6 Announced 33 2975.0 1062.5 9031.3 Total 7544.5 2676.8 22752.7 *Operating at actual capacity, approximately 5-10% over rated capacity. **Plants in bordering counties of other states with 50% use assigned to Iowa corn.
- 8. 8 Corn consumption and storage Current capacity* (mil gal) Corn Usage* (million bu) Corn Storage* (thousand bu) Corn Percent* (storage/usage) Minimum 24.0 8.6 220 1.87 % Maximum 120.0 42.9 5,500 59.23 % Average 64.6 22.4 1,214 7.79 % (4.38%)** Std. Dev. 27.6 10.1 1,108 12.54 % Sum 1,448.0 516.1 27,920 19,420** n/a *Represents 23 dry-grind plants in 2006 **Without two “high storage” plants Distillers Grains storage 2.62%
- 9. 9 Corn sources for ethanol plants • 62% of corn is purchased directly from farmers • 16 plants purchase >50% of corn from farmers • 5 plants tied to local elevators; 60-95% of corn comes from elevator
- 10. 10 Source: Robert Wisner, Dept. of Economics, Iowa State University
- 11. 11 Farm and Commercial Storage • Iowa has 1.65 billion bushels of on-farm storage (NASS, 2005) • Iowa has 1.08 billion bushels of commercial storage (IDALS – Grain Warehouse Division, 2006) Total – 2.73 billion bushels – Plant managers encourage on-farm storage; premiums structured for future delivery (2) – On-farm storage less likely to be built where cash rented land is prevalent – Plan to include questions about on-farm storage in Iowa Rural Life Poll in 2006-7
- 12. 12 Corn Quality • US Grade #2 Yellow Corn - no premium for better quality or special traits • Moisture limit: 17% (a few take 18%) • Test Weight low limit: 54 lb/bu • Damage limit: 10% (discount from 5%) • Broken Corn: 12% max Producers must meet #2YC quality spec to sell to ethanol plants. Otherwise, corn is rejected.
- 13. 13 Grain Storage and Management Practices Training Model Grain Storage Challenges --- Supplying the Ethanol Industry Farm Elevator Ethanol Plant Commercial Commercial No Yes Condominium Conventional 7 to 14 Days Conventional No Sell Store Build Temporary Yes How much needed Kind of capacity Kind of drying How Meets delivery cycle Build new How much needed Kind of capacity Kind of drying GEAPS 520 Training Grain Storage & Management Practices
- 14. 14 Grain Storage & Management Practices • What are the storage requirements for grain delivery to the ethanol plant – Delivery cycle • Will change farm storage requirements • Will require contract delivery – Moisture content • No greater than 17 percent – Quality factors • Trash • Aflatoxin • Damage
- 15. 15 Grain Storage & Management Practices • Grain storage and management practices –Farm –Elevator –Ethanol plant • Follow the link to storage and management questions.
- 16. 16 Grain Storage & Management Practices • Grain storage and management practices –Elevator • Follow the link to storage and management questions. Farm-Elevator-Ethanol
- 17. 17 Grain Storage & Management Practices • Grain storage and management practices –Ethanol plant • Follow the link to storage and management questions. Farm-Elevator-Ethanol
- 18. 18 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Yes Farm-Elevator-Ethanol
- 19. 19 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Temporary • Need to build storage? • No • Yes Farm-Elevator-Ethanol
- 20. 20 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Temporary • There needs to be more decision information here - hes Farm-Elevator-Ethanol
- 21. 21 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - How much is needed - What kind of capacity is needed - Do I need drying capabilities - Do I need delivery capacity - What economic tools are available Farm-Elevator-Ethanol
- 22. 22 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - How much is needed - How many bushel capacity? - How many bins and size? - What is the cost for capacity - Facility designs Farm-Elevator-Ethanol
- 23. 23 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - What kind of capacity is needed - Capacity in one or more bins - Capacity of conveyer or auger - Capacity of dump - Equipment selection Farm-Elevator-Ethanol
- 24. 24 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - Do I need drying capabilities - Dryer capacity - Bin air flow capacity - Equipment Selection - Grain flow and capacity Farm-Elevator-Ethanol
- 25. 25 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - Do I need delivery capacity - Dump pit - Bin structure - Conveyer and Leg - Delivery equipment - trucks Farm-Elevator-Ethanol
- 26. 26 Grain Storage & Management Practices • Farm – Grain Storage • Do I have storage? • No • Need to build storage? • Yes - What economic tools are available - Scenarios – 3 or 4 - Spread Sheets Farm-Elevator-Ethanol
- 27. 27 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Storage meets present needs • Need to build more storage • Physical Management of Grain • Safety Management Farm-Elevator-Ethanol
- 28. 28 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Storage meets present needs • Deliver all to elevator • Deliver part to elevator and store rest on farm for later sale Farm-Elevator-Ethanol
- 29. 29 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Storage meets present needs • Deliver all or part to elevator - Commercial options - Delivery schedules - Physical management Farm-Elevator-Ethanol
- 30. 30 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • How much is needed • What kind of capacity is needed • Do I need drying capabilities • Do I need delivery capacity • What economic tools are available
- 31. 31 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • How much is needed • How many bushel capacity? • How many bins and size? • What is the cost for capacity • Will old and new mesh? Farm-Elevator-Ethanol
- 32. 32 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • What kind of capacity is needed • Capacity in new and old bins • Capacity of conveyer and aguer • Capacity of dump Farm-Elevator-Ethanol
- 33. 33 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • Do I need drying capabilities • Dryer capacity • Bin air flow capacity Farm-Elevator-Ethanol
- 34. 34 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • Do I need delivery capacity • Dump pit • Bin structure • Conveyer and leg Farm-Elevator-Ethanol
- 35. 35 Grain Storage & Management Practices • Grain Storage at the farm • Do I have storage? • Yes • Need to build more storage? • What economic tools are available • Scenarios – 3 or 4 • Spread Sheets Farm-Elevator-Ethanol
- 36. 36 Grain Storage & Management Practices SAFETY • Electric Safety • Ladder Safety • Sweep auger Safety • Bin entry Safety • Grain Safety • ICASH and Farm Safety Farm-Elevator-Ethanol
- 37. 37 Grain Storage & Management Practices Acknowledgments • Copyright © 2006 – Iowa State University of Science and Technology – All rights reserved • Iowa State University – Extension – Iowa Grain Quality Initiative – www.iowagrain.org Farm-Elevator-Ethanol
- 38. 38 Iowa Grain Quality Initiative www.iowagrain.org Howard Shepherd howard@iastate.edu Grain Storage & Management Practices