By Blake Jackson
Corn and soybean harvests are progressing in Kentucky, slightly ahead of the five-year average for late September, with corn at 53% versus 48% and soybeans at 28% versus 20%.
This early harvest is attributed to dry conditions during August and September, although rainfall during the growing season supported decent yields.
Assuming production matches last year, total output for corn, soybeans, and wheat is expected to exceed 355 million bushels, making it the fifth-largest combined crop historically. For context, total production in 2023 reached a record 421 million bushels.
The large crop, combined with low summer prices, has strained storage availability, prompting many farmers to add new bins. USDA data indicate that Kentucky added 5 million bushels of on-farm storage in 2023, bringing total capacity to over 260 million bushels.
Off-farm storage remained unchanged at 94 million bushels, meaning on-farm storage accounts for roughly 73% of total capacity, one of the highest proportions nationally.
From a marketing perspective, river terminals are currently offering strong basis bids to encourage delivery, driven by declining Mississippi River levels and a desire to move grain before barge restrictions and new-crop supplies arrive.
This temporary strength should be leveraged while available, as inland basis bids remain weaker. When both futures and basis are low, a “store and wait” strategy is often recommended, though large supplies may delay recovery. Storage capacity, cash flow, and risk management should remain central to marketing decisions.
The situation has increased interest in temporary grain storage options such as grain bags, reinforced machinery sheds, and covered outdoor piles. Soybeans are best stored in conventional bins, while corn and wheat can be placed in bags or temporary structures.
Grain should be stored below market moisture quality grain about one point lower, damaged grain 2-3 points lower to minimize spoilage and discounts.
Tools for calculating storage capacity and comparing costs of bins versus bags are available through the University of Kentucky (https://bae.ca.uky.edu/extension/grain-storage-systems) and University of Tennessee (https://arec.tennessee.edu/grain-bag-and-bin-storage).
Even with lower cash prices, the combined value of Kentucky’s major crops exceeds $2 billion. Post-harvest losses of just 1% could cost more than $20 million statewide, highlighting the importance of careful storage and handling to protect grain quality and value.
Photo Credit: getty-images-chinaface
Categories: Kentucky, Crops, Corn, Soybeans, Wheat