On-Farm vs Commercial Grain Storage Calculator

How the on-farm vs commercial grain storage calculator works

On-farm cost adds the full entered annual fixed commitment to this event's monthly bushel cost and one handling charge. Commercial cost adds its monthly bushel charges and one handling fee; their difference is signed.

The annual fixed cost is not prorated by months and remains at zero bushels. Enter the intended annual allocation and ensure quantity fits actual usable storage capacity.

Inventory financing, shrink, spoilage, additional transport and minimum fees are excluded unless already included in an appropriate entered allowance. This is a cost comparison, not a storage-condition or market-return prediction.

Worked example

Ten thousand bushels for six months costs $3,000 fixed plus $600 operating and $1,000 handling on farm, or $4,600. Commercial cost is $3,000 plus $1,500, or $4,500. At 12 months, on-farm is $5,200 versus $7,500, saving $2,300.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• Iowa State Extension: grain storage ownership and commercial charges