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Corn and soybean storage could cost farmers more in 2025

An ag economist at Ohio State University says a recent study shows on-farm storage could be more expensive than prior years.

Professor emeritus Carl Zulauf says changes in interest rates have contributed to an uptick in storage costs. 

“Soybeans are 2.5 times the price of corn, so there’s a higher price per bushel,” he says. “In a year where you’ve got large production going on, you get a higher interest opportunity cost for soybeans than corn.”

He tells Brownfield decisions should be based on local prices.

“Since interest rates have gone up, you’re giving up that interest opportunity cost by not selling,” he says. “You’re earning interest that you could earn at a bank or perhaps even a higher interest rate on a loan, so that needs to be taken into consideration.”

Zulauf says farmers should be monitoring prices to take advantage of a potential market opportunities.

AUDIO: Carl Zulauf, Ohio State University