BLOOMINGTON, Ill. — With the current surplus of grain, some Midwest producers are running out of space to store their stockpiles, opting to store some of it in a makeshift capacity – and grain insurers say it is important to check with policyholders to be sure such conditions are insured.

 

Eric Swanson, a manager in crop underwriting at Country Financial, said his agency has been receiving questions regarding what grain storage conditions are insurable.

 

“We’ve been having some good yield years here since 2012, and that’s been building on itself and markets have been going down, and we have run into more farmers that are watching the markets a little closer and trying to wait for the right time to sell,” he said. “What that has caused is for people to hold onto a little more of their grain than historically.”

 

 If a producer is in a situation where their bin and elevator are full, they may decide to use grain bags, silage bags or even tarps to store excess grain. The questions that follow are many: Is this grain covered under their current policy? Is there a policy to cover grain stored in these conditions?

 

Swanson said for many grain-insuring companies, there are options available.

 

“I would say that from an industry perspective, it can be insured, it just depends on the policy and the company that holds it. There definitely are some solutions available for people who are needing to store grain in those capacities.”

 

He also said there are misconceptions about such insurance. “I think there are some misconceptions that that’s a very pricey item, and the other misconception is that it is automatically covered somewhere – some people think in their federal policy, and it is not.”

 

At the moment, stockpiles of grains are at record highs and the USDA expects the surplus to increase as the glut continues. Swanson said crop insurance is a key component of risk management in growing.

 

“When it comes to protecting the grain against different perils once it is harvested, it really becomes a different animal on the type of protection folks need,” he explained. “So we definitely encourage people to make sure they do have coverage, and try to bust some of the myths that it is such an expensive thing to do.”

 

 

When it comes to storing grain outside of a grain bin, Purdue University expert and associate professor of agricultural and biological engineering Klein Ileleji says a good option is purchasing a silo bag.

 

“Silo bags are made of a triple layer of thick, laminated, extruded plastic; the

two outer layers are white with UV-protective coating, while the inner layer in contact with the grain is black,” Ileleji said. “When fully loaded with grain, they are a long sausage-like tubular shape of about 8 to 12 feet in diameter and up to 200 feet in length, and can hold 8,000 to 12,000 bushels of grain.”

 

However, such bags require a few pieces of equipment most producers will not have on hand. “Special equipment is needed for loading and unloading, in addition to a tractor to power the equipment. Dealers have quoted unloading and loading equipment costs as just over $50,000. Usually two or three people are needed to load a bag.”

 

Though silo bags can be relatively expensive to fill and can only be used once, Ileleji said equipment may be rented at a lower price. Placement of the bags is also something to be considered, since once filled, they cannot be moved.

  

“Silo bags need to be located on firm, level and well-drained ground, free of cover or harborage for vermin (rodents, wildlife and the like) that destroy the stored grain or sharp objects that could puncture the bag,” Ileleji explained. “Avoiding spills during loading and the cleanup of spilled grain prevent rodents and wildlife from poking at the bag.

 

“Also, the bag should be set in place in such a way as to remove folds (bags stretch up to 10 percent) at the base that make it easy for rodents to chew the plastic. The base is said to be one spot wherevermin punctures typically are seen.”

 

Ileleji listed these management tips for producers interested in using silo bags:

 

•Corn and soybeans stored in silo bags should be at moistures at or below 15 and 13 percent.

 

•Corn dried using a high-temperature dryer should be cooled to within a few degrees of ambient temperature prior to bagging, so heat is not trapped in the bag when sealed.

 

•Silo bags should not be overloaded, to prevent breakage.

 

•Corn or soybeans should not be stored in the bags beyond spring and, if possible, for no more than four months. Winter conditions in the Midwest will keep the grain cool and slow biological activity. During spring, water may leak into the bag, and as temperatures rise, the growth of fungi and insect pests will accelerate in the wet grain.

 

•Bags should be inspected frequently for punctures by vermin and any other leaks. Punctures should be patched using specially provided sealants and tapes (not duct tape) available from the silo bag dealer.

 

•Bags should be sampled, using a grain trier, when necessary, to determine the extent of water ingress or spoilage that can be detected near the surface. Note that the liner must be punctured to access grain with a trier probe, then resealed after sampling.