By TIM ALEXANDER
Illinois Correspondent

BLOOMINGTON, Ill. — With ethanol-driven demand for grain expected to fuel recordbreaking increases in corn production during the next few years, an Illinois State University (ISU) study has revealed the number of elevator companies in the state has declined in the past dozen years while storage capacity has more than doubled - reflecting the “fewer and bigger” trend in American agriculture.

The study was based on survey responses from 160 managers of county grain elevators that are members of the Grain and Feed Assoc. of Illinois.

“The survey results indicate that the business structure for county grain elevators in Illinois has changed dramatically in a rather short period of time,” said Rick Whitacre, a professor in ISU’s agriculture department and lead researcher for the survey. “The decrease in the number of firms involved and the increase in the storage capacity of facilities mirror the larger trends of consolidation and concentration in American agriculture.”

ISU’s study shows that the number of elevators has declined from 425 in 1994 to 250 last year, a 41 percent decline. In the same time period, storage capacity has risen by more than double (2.16 million bushels to 4.6 million). The survey also indicates that 65 percent of county elevators are consolidated and operate from multiple locations.

The elevators’ customer base of grain producers and landlords has also changed dramatically as grain production takes place on fewer and larger farms, the study showed, along with a decrease in the elevators’ customer base, down to less than 300 in 2006 compared to 350 in 1994.

Evidence of the boom in grain storage capacity is evident at elevators throughout central Illinois, with many constructing new silos and other grain storage facilities. Evergreen FS Inc., operators of seven elevators in McLean County including the Yuton Elevator in Bloomington, has added 1.5 million bushels of storage in recent years, according to the Bloomington Pantagraph.

In Woodford County, Grainland Cooperative manager Jeff Brooks told Farm World that the finishing touches are being applied to two, 105-foot-wide by 84-foot-tall silos that have been under construction since last winter.

“The tanks are up, but the equipment is not yet installed,” said Brooks. “We’re looking to have them operational in June.” Once ready for storage, the silos will boost the elevator’s capacity by 700,000 bushels.

This farm news was published in the June 13, 2007 issue of Farm World, serving Indiana, Ohio, Illinois, Kentucky, Michigan and Tennessee.