Driving as I do regularly through Minnesota, WI, and IA farm country, I noticed a lot of new galvanized large grain storage bins popping up recently on farms everywhere. Some big co-ops have also added capacity. In some cases, they cut the bin in the middle, raise the top, and insert another steel section to increase its capacity. I am even seeing shiney new domes on top of old traditional masonery silos. The grain industry seems to be gearing up for something. There are so many of them, that I have to believe that the newly-increased ability to store grains will, while good for farmers, drive up the overall cost of food and ethanol at the consumer level.

I wasn't sure if my impressions were correct, so I looked up grain storage. Even though the graph does not show 2010-2011, the trnd is apparent and confirms my hunch...IA farmers have recently added millions of bushels of increased grain storage capacity.