America’s farmers are bringing in massive corn and soybean crops this fall, but a new concern is growing along with the yield — storage space. Bernt (BEAR-ent) Nelson, an economist with the American Farm Bureau Federation, says producers are facing a classic supply-versus-demand dilemma.
“Corn production for the ‘25-‘26 marketing year is estimated at a record 16.8 billion bushels,” Nelson said. “Now if we kind of switch gears and look over at soybean production, it’s also projected to be higher, at 4.3 billion bushels. If we kind of think about what’s happening with demand, demand is lower due to the ongoing trade challenges. And what this really means is that we’ve got a big crop, and we need to find a place to put it.”
While yields have continued to rise, national storage capacity has not kept pace. Nelson says total grain storage capacity — both on- and off-farm — was about 25.5 billion bushels as of December 1, 2024. That figure has grown only slightly in recent years, leaving limited room for this year’s bumper crop.
“Grain storage capacity has gone up only a little bit at the same time,” Nelson said. “Our big Corn Belt states have added very little new storage space in recent years.”
The lack of storage options could have ripple effects on prices and farm income. With production high and demand lagging, Nelson warns that both crop prices and basis levels could weaken, squeezing profit margins across the farm sector.
“The increase in crop size with limited increase in demand or storage space could continue putting some pressure on our crop prices,” he said. “It also could have a big impact on basis. A weakening basis would really add a significant price risk to the farm sector on the bottom line.”
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