Guide to grain storage protectant choice.
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GRDC GrowNotes Grain Storage
Grain storage cost benefit analysis template
Use this Excel template in conjunction with Section 2 of the GRDC Grain Storage GrowNote to calculate if on-farm storage might work for you.
The guidance from Section 2 is reproduced below, along with indicative capital costs for silos, sheds, bunkers and bags, so you can work through the template without opening the manual.
Economics of on-farm storage
As the use of on-farm grain storage across Australia expands, the question of economic viability gains significance.
There are many examples of growers investing in on-farm grain storage and paying for it in one or two years because they struck the market at the right time, but these examples are not enough to justify greater expansion of on-farm grain storage.
Analysis by Pinion Advisory found that post-harvest grain price movements are highly variable and difficult to predict. In most cases, the value of on-farm grain storage depends on the individual farming business, with the key drivers varying according to location, harvest logistics, grain quality and marketing opportunities.
Read the full analysis in the On farm grain storage benefits analysis report.
For most growers, the greatest return from on-farm storage comes from combining multiple benefits rather than relying on seasonal price movements alone. These may include improving harvest logistics, segregating or blending grain to capture quality premiums, increasing marketing flexibility, and delivering grain directly to buyers to reduce freight and handling costs.
To make a sound financial decision, compare the expected returns from grain storage vs expected returns from other farm business investments, such as more land, more harvest equipment, wider machinery, more trucks or paying off debt. Calculating the costs and benefits of on-farm storage enables a return on investment (ROI) figure, which can be compared with other investment choices.
Use the grain storage cost–benefit analysis template (Table 3) to compare different storage types or varying storage scenarios.
The key to a useful cost–benefit analysis is identifying which financial benefits to plan for and costing an appropriate storage to suit that plan. If the plan includes the potential to store grain for longer periods, a gas-tight sealable storage option should be considered to enable fumigation.
When considering temporary storage types for shorter term storage, give thought to the business’ labour availability to fill, manage and empty those storages. Being realistic about your attentiveness to detail when it comes to setting up and managing temporary storages meticulously could avoid an inevitable disaster of damaged grain.
A combination of storage types often works well. Cost each component individually before combining the results to calculate the overall return on investment for the proposed system. To compare costs and benefits consistently, convert all figures to a dollars-per-tonne ($/t) basis.
When comparing manufacturer-quoted storage capacities, check that the grain bulk density used is consistent with the grain you intend to store. It is also important to reality-check the figures throughout the calculation process to ensure they are realistic.
Table 1: Silo capital costs by region (2026)
Source: GRDC Grain storage extension team 2026
Table 2: Shed, bunker and bag capital costs
Source: GRDC Grain storage extension team 2026
Capital costs shown in Tables 1 and 2 were sourced from a wide range of manufacturers, suppliers and grower quotes or invoices. They are a guide only and accurate at the time of printing.
A number of positions and assumptions for specific variables have been made in calculating the cost of grain storage investment, as follows:
- All prices exclude GST
- All prices exclude freight
- All capacities quoted are for wheat including a compaction allowance of 5%
- Shed prices assume the shed is filled to capacity unless discounted for average fill
- Silos priced are all gas-tight sealable meeting AS2628
- Ladders are an essential management tool and have been included in pricing
- Silo pricing excludes earthworks, electrical and plumbingspecific to a site
- A linkage and PTO tractor is available for grain storage bag machinery
Capital costs shown in Tables 1 and 2 were sourced from a wide range of manufacturers, suppliers and grower quotes or invoices. They are a guide only and accurate at the time of printing. To view the full report, see the Grain storage cost considerations report.
Table 3: Grain storage cost-benefit analysis template
Grain storage cost–benefit analysis template
(Source: GRDC Economics of on-farm grain storage)
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