Need more bins? How and why farmers are increasing on-farm storage

By Trevor Bacque

Advances in Canadian agriculture are touted so positively and so often, it’s hard to think there would be a downside. But sometimes success can have unexpected consequences.

For instance, world-class germplasm has led to ever-better varieties across all crop types, and one evident result is a massive production increase. In 2000, Canada’s collective wheat and canola yield was 33.7 million tonnes. By 2024, the total soared to 53.2 million tonnes. This increase has unquestionably forced farmers to upgrade their on-farm storage capacity. So, what’s new and what should I consider if I want to upgrade my yard?

Naturally, cost, logistics and future storage needs will figure into that equation. But there’s also the idea of using on-farm storage as a risk management tool — that a carefully considered bin yard adds to your autonomy and ability to sell grain when you want to, not when you have to.

New bins mean more options

Harvest is always a crunch time, and this truth took on a whole new meaning last fall for Cale Hubka.

The southern Alberta farmer frantically combined his fields while construction was simultaneously underway in his main yard where six, 42,000-bushel, flat-bottomed AGI bins were being built. They were completed mid-harvest and moments later were all but full. With 8,000 acres of mostly irrigated land to manage at Hubka Farms, the namesake operator knew the race was on and, thankfully, he came out ahead. He was glad he did, too. Being a price taker is never fun.

“Prices were almost at their lowest coming up to harvest,” he says. “That was the biggest reason I pulled the trigger. It was a very late decision. They pretty much got built just in time.”

All bins pay for themselves eventually, but Hubka hit pay dirt almost immediately. Going into harvest 2024, durum in his area was priced at $8.60 per bushel, a price he’d have to have taken before. But with grain safe in his new bins, he managed to sell a portion of his durum into December for $9.50 per bushel. “We made the right call.”

Now, with the extra storage and room to expand in the future, Hubka breathes a sigh of relief. His new bins are outfitted with temperature and moisture cables, electric unloads and aeration.

This monitoring and conditioning equipment was critical for Hubka because losing 42,000-bushels of canola is a different level of hurt than losing 5,000. He doesn’t mince words about protecting his assets: “You’d be pretty stupid not to put cables in,” he says. “That’s a lot of money you’re not paying attention to if you hold (the grain) for any amount of time.”

Market trends: bigger bins, better planning

Derek Johnson, regional sales director with AGI in Western Canada, says that while fewer individual bins are being built these days, the overall storage capacity they provide is similar — why build five small bins when you can have one giant one? “As farms have gotten bigger, the sheer economies of scale pushed farmers to larger diameter bins,” he says.

A request Johnson gets a lot these days is for a pair of matching 30,000-bushel bins with stairs and high horsepower aeration. There are higher quality, better yielding crop varieties out there, which necessitate greater on-farm storage,” says Johnson.

In terms of time and cost, a rule of thumb is to plan on six-plus months to take a bin yard build or expansion from start to finish. As well, the bigger you build, the lower your cost per bushel; small hopper bins can work out to $5 per bushel to build whereas larger bins can be $2-plus cheaper.

Johnson says farmers looking to expand their land base should look at their current storage and what they want it to be. “When you look at it over the long run, safe storage is a fairly cheap option,” he says. “Galvanized storage of commodities, with the proper aeration, can (last) for months, if not years.”

On the flip side, he suggests that some farmers cropping 3,000 or less may want to forego bin additions because the buyback period doesn’t pencil out. For these farmers, hopper-bottom bins make infinitely more sense than the new-school flat-bottom bins, particularly if they are experiencing labour challenges. Plus, it’s hard to justify the cost of new bins if there’s no one to succeed them on the farm, or buy it.

Evaluate what you have, DIY to save

Kevin Malica is a product manager at Meridian and says most farmers aren’t building greenfield projects, but rather updating existing sites, which makes planning all the more important.

Gone are the days of three-tonne trucks pulling up and unloading, so you really need to think about how you’re going to design an upgrade. You’ll need sufficient room for augers, trucks and an ample turning radius, says Malica. “When it’s crunch time at harvest, you don’t want that bin yard to just be a traffic jam. You want to have the space to turn around.

“You have to think about where you’re going to be loading and unloading and have your ground done properly,” he says. “You’re going to have heavy trucks going on it; you’ve got to do the ground prepping. You need lots of space.”

He also suggests farmers be close, but not too close, to utility access for electrical and gas supply for lighting, fans and dryers.

Johnson says farmers can do some pre-work ahead of time, which can add up to real savings. The most common work done by the farmer is ground preparation: removing topsoil, laying down crush gravel and readying the site for concrete. Hubka DIY’d this step and saved more than $50,000.

Farmers should budget between $2.75 and $3 per bushel for the average large flat-bottom bin. Johnson encourages farmers to consider their augers, as well, and if they need to upgrade to accommodate the new bins.

Consider, too, where you want a ladder, or staircase, to be situated, as well as aeration fans, which are typically on the backside. Make sure that’s properly mapped out and that there is sufficient room for all machinery in the yard.

“Building a grain storage and handling site is a phased approach that may require many years of planning and construction,” Johnson says of new and existing sites. “Beginning with the end in mind will allow the grower to gradually piece together a large footprint of permanent storage and handling equipment.”

Three things to consider when upgrading a bin yard.

Johnson encourages to farmers to think short- and long-term about bin sites. Here are the top three things he advises farmers to consider.

Plan. Have a detailed plan, especially as it relates to the best-case production scenario versus your current storage situation.

Commodities. Understand the commodities you grow and how much segregated storage you require, especially as yield/genetics continue to push harvest tonnage up.

Phased approach. Not all construction needs to be completed in Year 1. It may be a five- to 10-year process to get everything you need and want at the yard site. Be patient.