By Andi Anderson
A new analysis of Ohio’s corn and soybean storage costs reveals that total expenses have doubled since 2020, reaching the highest levels since 1973.
The study examines storage costs per bushel, relative to harvest prices, and per acre of production—each showing steep increases as interest rates and facility fees climb.
The 2023–24 marketing year marks a turning point in storage economics. After decades of stability, total costs for storing corn and soybeans for 12 months now exceed $1 per bushel, signaling a significant shift in post-harvest economics.
For corn, total storage cost reached $1.46 per bushel, including $1.30 for commercial physical storage and $0.16 for interest opportunity cost. For soybeans, the total reached $1.72 per bushel, with $1.30 in storage fees and $0.42 in interest costs.
Despite similar storage charges, soybeans remain costlier to store due to their higher market value.
Researchers found that from 1974 to 2019, declining interest rates largely offset steady increases in physical storage expenses. Since 2020, however, both factors have risen sharply, driving costs upward.
“The reinforcing role of higher interest rates has been especially noticeable since 2020,” the study noted.
Relative to harvest prices, storing soybeans is cheaper than corn. Total storage costs averaged 20% of October price for corn and 11% for soybeans, reflecting soybeans’ higher price-to-storage ratio.
Per-acre storage costs also surged. In 2024, it cost $258 per acre for corn and $86 per acre for soybeans, only slightly below the 2023 highs.
The findings underscore how interest rates now play a decisive role in determining farm storage profitability.
With commercial fees climbing and financial costs reinforcing physical expenses, Ohio farmers are re-evaluating on-farm and off-farm storage strategies to stay competitive in a tightening margin environment.
Photo Credit: istock-fotokostic
Categories: Ohio, Crops, Soybeans