Plains Farmers Storing More
Grain At Home, Sweating Price

GRAND ISLAND, Neb. —(AP)— Low commodity prices and demand for U.S. grain has more farmers storing crops on the farm — which in turn has offset a rail-car shortage predicted in July.

Area construction companies and grain bin dealers are experiencing as much as double — even triple — the number of orders for new steel bins this year as in the past.

Loren Schuett of Grand Island, who farms in western Merrick County, said he opted to purchase a new grain bin because storage and handling fees at a co-op or other grain-handling facility would be more expensive.

Schuett said he also was concerned about the amount of grain piled on the ground last year that partially spoiled due to rain and snow.

Chief Industries' Agri/Industrial Division, which manufactures grain bins, has experienced as much as a 50 percent increase in the number of bins produced, its national sales manager said.

"It's not the biggest bin year we've ever had, but more than in recent years," Dee Swanson said from his Kearney office. "When you see the price go down and there is nowhere to go with grain, you anticipate there probably will be a greater demand for storage, not only on farms but commercially as well."

Local farmers using bin space on their farms also helped elevators ease rail car shortages, said Larry Roscoe, grain merchandiser and location manager at the Aurora Co-op in Grand Island.

Roscoe said obtaining rail cars has not been a problem. He anticipated 30 percent less grain would be stored at the elevator compared to last year, when most farmers sold it at the elevator to take advantage of $2.60 corn.

Elevators and grain merchandisers were reporting delays of railroad cars from five to 12 days, compared with delays as long as four to six weeks last year.

"There are delays, but not as extensive as last year," said Lance Lamers, manager for Cargill in Kearney, Ravenna, Gibbon and Wood River.

Union Pacific Railroad had anticipated the shortage would occur if grain prices improved and UP tried to move major crops, spokesman Mark Davis said.

"Unfortunately for our customers, prices continued to remain low," he said. "We don't see a lot of grain moving until prices improve. We're waiting along with the ag community."

The low grain demand has allowed Burlington Northern-Santa Fe Railroad to run on a more expedient schedule with its cars, said Gus Melonas, a corporate relations official from Seattle.

Farmers such as Schuett said they plan to store as much of their grain on their farms as possible and hope for rising prices.

Schuett said he will store two-thirds to three-quarters of his corn at his farm indefinitely, depending on when grain prices rebound.

"Normally, as we go into winter and spring, the price will go up," he said. "Hopefully, I'll hold on for a better price. Farmers are eternal optimists."