How do you plan to market your 2006 grain crop? Futures prices remain relatively strong, yet a wide basis makes for a discounted cash price in many areas for the time being.

For many producers, on-farm storage appears to be a very viable option to capitalize on possibly a stronger cash price three to six months down the road. Storing grain at the farm presents some challenges and additional risks that can be easily prevented with a proper management strategy that starts long before the grain reaches a bin.

Storage challenges

Late season moisture, following an extremely hot and dry summer, is causing some producers to harvest the crop at a higher than normal moisture content due to poor stalk quality. Even with the price of propane, producers must weigh the benefit of drying versus the increased harvest problems associated with the risk of lodged corn. At the very least, it would be wise to harvest hybrids that may have a greater tendency toward late season stalk quality issues first.

Producers can also help themselves a great deal by limiting the amount of foreign matter in the bin with appropriate combine settings. Reducing the amount of debris in a grain bin helps to reduce the risk of certain types of bug damage to the stored grain. Also, proper handling of grain that may have some kernel damage from insects attacking the ears in the field will help reduce the risk of bug damage while in storage. Insects such as Western Bean Cutworm – that feed on the ears – open the kernels up to more insect problems, as well as ear molds and diseases that may attack the grain before the crop ever reaches the on-farm storage.

Prior to storage, growers should make sure all grain bins are clean from last year’s crop. Never mix old grain with new grain. Old grain can serve as a vector for insects or grain molds. Growers should consider an insecticidal treatment in the bins as a preventive measure, especially if they have had pest problems in the past. Only insecticides labeled for grain storage should be used.

Growers should also check and repair all seams, holes or cracks using an appropriate material for this purpose. Spilled grain may attract and harbor insects or rodents, so keep areas around bins clean. Always dry grain to the required temperature for the length of time you intend to store. Bins should be aerated well to eliminate spoilage. After aeration is complete, fans should be covered to prevent moisture and insects from getting into the grain bin. Check bins on a regular basis to make sure the grain remains in good condition.

Keeping grain in proper condition, while in on-farm storage, is relatively simple if grain is dried and stored at the appropriate temperature. An early harvest this year across much of the Corn Belt could pose some additional challenges to producers. Grain will be harvested at a warmer than normal temperature and outside conditions may make it difficult to cool grain until temperatures begin to drop off later in the fall. Adequate aeration and continual monitoring of stored grain will be necessary to keep grain in condition.

Be Prepared with Hybrid Traits

When considering where to sell your product, remember to find out whether they accept non-European approved grain. If a grower used biotech hybrids such as Herculex® I Insect Protection, Roundup Ready® or YieldGard® Rootworm, they will be limited to selling to buyers that accept such grain.

To find out the status of markets that accept non-European approved grains, visit the American Seed Trade Association’s Web site or the National Corn Growers Association Web site. Although these Web sites are updated regularly, make sure to follow up with a buyer by phone to confirm the types of biotech grains that are accepted.

Growers with on-farm storage need to consider segregating any crops that have non-European approved hybrids. Commingling with conventional crops may limit growers’ options for marketing. If growers do a good job of segregating the crops, they may be able to get a premium price for non-European approved crops or earn premiums for certain biotech grains. It is a producer’s responsibility to make sure non-European grains are marketed properly.

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