Dryer Type
Storage Cost Analysis
Enter grain data and click calculate.
Embed This Calculator on Your Website
Add this free calculator to your blog, website, or CMS with a simple copy-paste embed code.
What This Calculator Does
This grain storage and drying cost calculator helps farmers and grain merchandisers analyze the full cost of on-farm grain drying and storage. It calculates drying costs (propane fuel, electricity) based on moisture removal points, dryer type, and energy prices, plus storage costs including facility amortization, handling, shrink loss, and insurance. The tool then compares total carrying cost against expected basis improvement to determine whether storing grain is more profitable than selling at harvest.
The Formula
Drying cost depends on the amount of moisture removed (points), dryer type efficiency, and energy prices. A batch dryer uses approximately 0.022 gallons of propane per bushel per point removed. Shrink loss is calculated at 1.183% per moisture point removed (accounting for both water weight loss and handling loss). Storage facility cost is amortized at approximately $0.03 per bushel per month based on a 25-year bin life. The basis improvement comparison shows whether the expected seasonal price gain from harvest to delivery exceeds the total carrying cost.
Step-by-Step Example
Enter grain data
25,000 bushels of corn at 20% moisture, target 15%. Batch dryer. Propane: $1.60/gal.
Calculate drying cost
5 points removed. Fuel: $4,400. Electricity: $450. Total drying: $4,850 ($0.194/bu).
Calculate storage cost
5 months storage. Facility: $3,750. Handling: $1,500. Shrink (1,479 bu): $6,656. Insurance: $127. Total: $12,033.
Evaluate net benefit
Total cost: $16,883 ($0.675/bu). Expected basis gain: $0.30/bu = $7,500. Net loss: -$9,383. Storage not profitable at this basis improvement.
Real-World Use Cases
Harvest Marketing Decisions
Compare the cost of drying and storing grain against selling wet at harvest with a moisture discount to determine the most profitable marketing strategy.
Storage Investment Analysis
Evaluate whether building additional on-farm storage capacity is justified based on historical basis patterns and carrying costs in your area.
Energy Cost Sensitivity
Test how changes in propane and electricity prices affect total drying costs to determine at what energy price point drying becomes uneconomical.
Common Mistakes to Avoid
Ignoring shrink loss in cost calculations. Shrink is the single largest storage cost component, averaging 1.18% of bushels per moisture point. On 25,000 bushels dried 5 points, shrink loss is nearly 1,500 bushels.
Using commercial storage rates to justify on-farm storage without accounting for capital investment. On-farm bins cost $3 to $6 per bushel of capacity to build. Include depreciation and interest in your analysis.
Assuming basis will always improve. Basis patterns vary by year, location, and crop. In surplus years, basis may remain weak through spring. Review 3 to 5 years of local basis history before committing to storage.
Not monitoring stored grain. Grain that goes out of condition (heating, mold, insects) loses grade and value. Factor in aeration fan electricity and monitoring time as additional costs.
Frequently Asked Questions
Accuracy and Disclaimer
Cost estimates are based on general industry averages for fuel consumption, shrink rates, and storage costs. Actual costs depend on your specific dryer efficiency, energy prices, bin age and size, grain condition, and local market conditions. Basis patterns are historical and not guaranteed to repeat. Consult your grain merchandiser or extension economist for farm-specific storage profitability analysis.
Related Calculators
Crop Yield Revenue Calculator
Estimate gross revenue per acre from crop yield and market price using 2026 USDA projections of $4.20/bu corn, $10.30/bu soybeans, and $5.00/bu wheat.
Use CalculatorAgriculture & FarmingFertilizer Application Rate Calculator
Calculate pounds of fertilizer product per acre from soil test NPK recommendations and fertilizer analysis grade to optimize nutrient application and cost.
Use CalculatorAgriculture & FarmingLivestock Feed Cost Calculator
Calculate daily and annual feed costs per head for cattle, hogs, poultry, and sheep using 2026 feed commodity prices with corn at $150/ton and soybean meal at $320/ton.
Use Calculator