Grain Storage Cost Calculator

How the grain storage cost calculator works

Storage multiplies bushels by months and the monthly rate. Simple interest prices original inventory value for months divided by 12. Handling is one charge; the total-period physical-loss allowance is valued at the entered original price. Components round independently to cents.

The loss percentage is for the whole event, not a monthly compounded rate. At zero months, handling and an explicit event loss remain for a positive quantity; interest and monthly storage become zero.

Interest may be an economic allowance rather than a cash invoice. No market-price increase, spoilage probability, commodity conversion or safe grain-storage duration is predicted.

Worked example

Ten thousand bushels held six months at $0.03/bu-month cost $1,800 storage. At $5/bu and 8% simple annual interest, holding interest is $2,000. Add $1,000 handling and $500 loss allowance for $5,300 total. Three months costs $3,400.

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 holding costs