An increasing number of growers are holding grain for sale until after harvest to increase their marketing options and get maximum value for their grain, either by using on-farm storage or warehousing grain in the centralised storage system.

On-farm grain storage can provide growers with opportunities to better manage grain pricing and reduce freight costs, as well as making harvest management more efficient. Growers are using on-farm storage to meet the specific requirements of end-users such as stockfeed buyers and millers. Higher returns from storing grain on farm are usually due to proximity to the end-user, which normally means ready access to a domestic market, however the container export market is increasingly likely to offer favourable marketing opportunities for grain stored on farm. Growers who are restricted mainly to the bulk export market are generally better off delivering grain into the centralised storage system to minimise costs.

The potential gains to be made by storing on farm will vary, but are most likely due to:

• Freight savings from transporting grain direct to end-user compared to moving grain from farm to centralised storage to end-user.
• Achieving lower on-farm storage costs relative to centralised storage costs.
• Cutting marketing costs as much as possible by dealing direct with the end-user.
• Storing grain that is considered below its true value at harvest, but which has good potential to move higher later in the year.

Growers considering on-farm grain storage need to look at the various systems available and ensure they get a system that is going to work for them. Grain storage systems come in all shapes and sizes from short term silo bags to large, permanent installations. The main aim for a grain storage and marketing enterprise is to ensure grain quality is maintained during storage as efficiently as possible. The best system to use is a gas-tight, sealed system with aeration capability. Gas-tight storages are most effective in killing insects and allow the grower to market their grain as residue free when fumigated correctly. Aeration cools grain to maintain quality and is essential for long term storage.
Most importantly, your grain storage system should be planned to meet end-user requirements, so that grain can be stored safely while maintaining quality and keeping costs under control.

AUTHOR: Peter Fulwood, Sustainable Agricultural Systems Consultant, Rural Solutions SA
CONTACT: Peter Fulwood, Rural Solutions SA Nuriootpa Office, Telephone: 08 8568 6400

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