By: Carl Zulauf, Professor Emeritus, Ohio State University; and Eric Richer, Associate Professor and Field Specialist , Ohio State University Extension
The cost of storing the average Ohio corn and soybean bushel since 1973 is examined. Storage cost is measured three ways: per bushel, relative to harvest price, and per acre of production. All three measures are at or near post 1973 highs as total costs to store corn and soybeans have roughly doubled since 2020 and now exceed $1 per bushel for both corn and soybeans over a 12 month storage period. This notable increase occurred after a long period (1974-2019) during which declining interest rates and thus interest opportunity storage cost per bushel largely offset increasing physical storage cost per bushel. These storylines underscored the important role of interest rates and thus interest opportunity cost in offsetting or reinforcing on-going increases in physical storage cost. The reinforcing role has been especially noticeable since 2020.
Procedures:
Starting this study with the 1974 marketing year postdates the increase in price variability that occurred in the early 1970s (Kenyon, Jones, and McGuirk). The study ends with the last complete marketing year, 2024. Cash price is the average monthly price paid to Ohio farmers by first handlers as reported by USDA (US Department of Agriculture), National Agricultural Statistics Service. Storage starts in October, the month with the lowest average cash price. Storage cost includes (a) physical storage cost at commercial facilities to keep the crop in useable condition and (b) interest opportunity cost of storing instead of selling at harvest. Annual physical storage cost is from USDA, Commodity Credit Corporation through the 2005 marketing year. Thereafter, it is for an Ohio country elevator, cross checked with another first delivery point. Interest opportunity storage cost is calculated by multiplying (a) the October Ohio cash price times (b) the average one year US Treasury bill rate quoted on an investment basis for October as reported by the Federal Reserve Bank of St. Louis.
Physical storage cost for corn and soybeans can vary, even within a state, across different local markets in any year due, in part, to different local supply and demand conditions for storage. Moreover, the structure of commercial storage cost for corn and soybeans often varies from year to year. Common structures are (a) monthly or daily charge per bushel, (b) monthly or daily charge per bushel plus an upfront charge, and (c) an initial charge for a period, for example 3 months, then a monthly or daily charge per bushel. To create a standard format across years, physical storage cost were converted into a cost for the year (i.e., 12 months of storage).
Corn Storage Cost per Bushel per Year since 1973
Total storage cost per bushel for Ohio corn changed little from 1974 through 2005 as declining interest rates and thus interest opportunity cost per bushel offset a small, on-going increase in physical storage cost per bushel (see Figure 1). Between 2005 and 2020, a somewhat larger annual increase in physical storage cost per bushel was mostly, but not completely, offset by an interest rate and thus interest opportunity cost per bushel that approached zero. Since 2020, both storage cost components have increased, pushing total storage cost to a post 1973 high. For the 2024 marketing year, total storage cost for corn for one year was $1.46 per bushel divided into $1.30 of commercial physical storage cost and $0.16 of interest opportunity cost.
Soybean Storage Cost per Bushel per Year since 1973
Total storage cost per bushel for Ohio soybeans exhibited no trend from 1974 through 2020. Lower interest rates, thus interest opportunity cost per bushel, offset increasing physical storage cost per bushel, even after physical storage cost increased faster after 2005 (see Figure 2). Since 2020, total cost per bushel has reached a post 1973 high as both storage cost components increased. For the 2024 marketing year, soybean storage cost for one year totaled $1.72 per bushel divided into $1.30 of physical storage cost and $0.42 of interest opportunity cost.
Total storage cost per bushel was higher for soybeans than corn in every year, averaging 37% higher since 1973. The reason is that, while physical storage cost per bushel is usually similar for corn and soybeans, interest opportunity cost per bushel is higher for soybeans due to the price of soybeans being roughly 2.5 times higher than the price of corn. Total storage cost per bushel for soybeans and corn was most similar during the 2009-2021 marketing years when interest rates were near zero.
Total Annual Storage Cost per Bushel Relative to Harvest Price
Because price and storage cost per bushel have increased for corn and soybeans since 1973, it is useful to examine the ratio of total storage cost per bushel to October harvest price. By this measure of total storage cost per bushel, storing soybeans is cheaper than storing corn (see Figure 3). The reason is that physical storage cost per bushel has usually been larger than interest opportunity cost per bushel while price is roughly 2.5 times higher for soybeans than corn. Relative to the October price, total storage cost has averaged 20% for corn with a range of 6% (2012) to 38% (2024) vs. 11% for soybeans with a range of 3% (2012) to 21% (1981). The low ratios for 2012 reflect low interest rates and low physical storage cost, with the latter reflecting competition among commercial storers for the drought reduced 2012 crop. The ratio for 2024 is the high for corn (38%) and near the high for soybeans (17%).
Cost to Store One Acre of Production for One Year
Another perspective on storage cost is the total cost to store one acre of production for one year. Despite increasing yields per acre, this cost measure barely changed from the late 1970s through 2005 (see Figure 4). It then began to move higher as yield and storage cost increased. The increase surged post 2020. For the 2024 marketing year, total cost to store one acre of Ohio production for one year was $258 for corn and $86 for soybeans, which are somewhat below their highs in the 2023 marketing year.
Summary Observations
Ohio corn and soybean storage cost is measured three ways: per bushel, relative to harvest price, and per acre of production. For all three ways, total storage cost has roughly doubled since 2020 as both commercial physical storage cost per bushel and interest opportunity storage cost per bushel have increased. Total storage cost is at or near post 1973 highs no matter how it is measured.
The post 2019 increase comes after an extended period of time, 1974 – 2019, when declining interest opportunity cost per bushel due to declining interest rates mostly offset increases in physical storage cost per bushel.
The preceding two points underscore the important role of interest rates and thus interest opportunity cost in offsetting or reinforcing the on-going increase in physical storage cost. The reinforcing impact has been especially noticeable since 2020.
Since 1973, on a per bushel basis, it has on average been more expensive to store soybeans than corn; but, when total storage cost is expressed relative to corn and soybean price, it has been more expensive to store corn than soybeans. These finding may seem at odds but they reflect the interaction of a roughly 2.5 times higher price for soybeans with a usually similar physical storage cost per bushel for corn and soybeans. In short, whether corn or soybeans is more expensive to store, depends on how total storage cost is measured.
References and Data Sources
Barchart.com. August 2025. Futures price data. https://www.barchart.com/
Federal Reserve Bank of St. Louis. September 2025. Federal Reserve Economic Data. December. https://fred.stlouisfed.org
Ohio Country Elevator. 2006-2017. Personal inquiry of annual corn and soybean storage rates.
US Department of Agriculture, Commodity Credit Corporation. 1974-2007. Annual personal inquiry.
US Department of Agriculture, National Agricultural Statistics Service. October 2025. QuickStats. http://quickstats.nass.usda.gov/