Market Matters Blog
Pat Hill DTN Markets Editor

Monday 10/12/09

Bag It?

Producers who don't have enough bins to handle this year's crop have an alternative to hauling straight to town -- grain bagging.

As DTN Agronomist Dan Davidson reports today in DTN AgNews, bag storage was pioneered in Argentina, and there are now a number of companies selling the systems in the U.S. The grain can be bagged right in the field -- over 20,000 bushels per hour. It eliminates one step in transporting the grain, a savings that helps pay the cost of the bags.

Representatives from the grain-bag companies told Davidson the bags can be used as a marketing tool.

Terry Twiestmeyer with Grain Bag Systems in Grand Island, Neb. told Davidson, "Grain bags play an important role when farmers have a big crop, poor prices and a marketing problem."

Twiestmeyer said with such a good corn crop this fall elevators will fill fast and corn will have to go on the ground at an elevator or in a bag on the farm.

Chris Finck with Show-Me Shortline Company in Centralia, Mo. recommends bagging the excess grain and growers can gain from an improvement in basis, market carry plus more efficiency at harvest.

Finck said, "Your basis gain, plus market carry and efficiency can pay for the baggers."

Pete Dillon owner of Lamar Fertilizer in Lamar, Neb. who sells grain bagging equipment, said, "I think growers will be amazed with what they can do with them and the flexibility they added to their storage and marketing program."

Bill Harrell with Delta Grain Bag Systems in Monette, Arkansas said the producer "can keep combining and bag right in the field. Combines are always working and corn is stored until they have the time to handle it later."

That's what the salesmen are telling us. Have you had an experience with bags that you'd care to share? We'd be eager to hear from you -- reach Dan at dan.davidson@dtn.com, or me, pat.hill@dtn.com

Posted at 11:45AM CDT 10/12/09 by Pat Hill
Comments (6)
I have had experience with grain bags, and I never want to see them again!! We are in southwest nebraska, and were trying to store the corn for June/July delivery. I dealt with deer walking on the bags and raccoons tearing holes in the bags most of the winter. We then experienced a small hail storm in May. Needless to say, you couldn't see any holes in the bags unless you really got up close where there were small pin holes. We decided to move the grain immediately at which time we found out just how much water can funnel through to the bottom of the bags. We had about 6 inches of wet stinking corn in the bottom of the bags, which inhibited the effectiveness of extracting it. We therefore, ended up scooping a lot of stinking corn. The bags do not take hail at all. Last year, guys around me ran into defective bags. They would get 10,000 bushel in them only to watch the bag split in half the whole length of the bag. All in all, if you are going to bag corn, a grain vac should also be included.
Posted by Unknown at 12:17PM CDT 10/12/09
Interesting comments. In Argentina a lot of the grain is stored that way and for months until it can be trucked to the port. I asked farmers this same question and they said problems with wildlife were pretty insignificant. This is exactly what the dealers said when asked because it seems obvious that wildlife could wreck havoc on bags. Its not impossible to have deer walk on them and poke holes, but there seems to be no good reason why they would if there is no odor released but maybe raccoons are the real challenge. Like any technology some will have challenges and dismiss it while it works for others and they will embrace it.
Posted by Daniel Davidson at 12:28PM CDT 10/12/09
I would like to know how well it works to store 20-30% moisture corn in it for later removal and drying. With the maturity not happening this year, there is nothing even close to 20% yet and we are already behind most years in terms of harvest. Deer are also a problem here. As long as the antlers are still on the bucks, they will rub on anything and if they see something new in the field, they are sure to test it with those tines. Once the snow comes, it will redue the likelyhood that they will bother and with the recent forcast, the snow may be here before we get the beans off, let alone the corn.
Posted by Dale Paisley at 12:48PM CDT 10/12/09
Company reps say it works well for a temporary in and out solution with wet grain. Keep the dryer full and and the combine in the field. You can unload bags later and continue the drying process once combining is done. No need to stop now when the drier is full or grain is cooling off waiting for space. I was told that there are already some farmers using it for this sole purpose.
Posted by Daniel Davidson at 3:49PM CDT 10/12/09
From a producer in South Dakota: These storage bags are like anything else............ someone has a total success story and someone else has a total nightmare story. These bags have been used in our area for years for silage and wet corn. I think these are successful if you watch so coons and other varmints do not make holes in the bag..........you keep a roll of tape in your pickup and you check these bags daily especially when it is warm out. Last year they were used a lot like you described as a in the field storage to keep combine going. Some had success and some had the agony of defeat. The trick is to get them emptied before it warms up in the spring and if they are buried under a 20 foot snow drift that could be a challenge. I had one neighbor that put in fairly dry corn...........under 17.........but when it took it out in May he claimed it was 32 percent.....some how the bag collected moisture.
Posted by Pat Hill at 6:32AM CDT 10/13/09
It would be nice for someone to post a success story. I feel like a guinea pig this fall since I am going to test the technology and will write about my experiences, both positive and negative. I will find out first hand about the threats from wildlife. Maybe I better set some cage traps for raccoons in advance.
Posted by Daniel Davidson at 8:16AM CDT 10/13/09
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