Speaking at the 2026 Australian Grain Storage and Protection Conference, NSW grain grower and GRDC Northern Panel member Mark Swift emphasised the importance of due diligence when investing in grain storage.
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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.
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:
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)
Grain Storage Specialists Chris Warrick and Ben White step through an example to calculate aeration running costs.
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A simple step by step run through of how to calculate running costs of aeration cooling fans.
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This section is based on the RIRDC Grain Marketing Handbook, which was prepared by Neil Clark and Associates and funded by the Rural Industries Research and Development Corporation and the Grains Research & Development Corporation. Neil Clark and Associates acknowledges assistance from Australian Wheat Forecasters in the preparation of this material. The material on this web–CD was revised by David Webley and edited by Orange Agricultural College. Used by permission.
The spreadsheet linked to the section, The cost of on-farm storage, Break Even Grain Storage Model, was developed for Agriculture Victoria by Peter Botta and Brendan Madden. © Agriculture Victoria. Reproduced by permission.