U.S. farmers are facing a mounting challenge as the 2025 harvest season approaches: where to store all the grain. The USDA's latest projections point to a record-large corn crop, and while soybean yields are not historic, the lack of Chinese demand means significantly more soybeans will also remain in domestic storage.

The surge in grain supply has sparked concern across the Midwest, especially in regions like the Dakotas, where export buyers are absent and storage infrastructure is already stretched thin. Naomi Blohm, senior market adviser at Total Farm Marketing, warns that farmers could soon see piles of grain on the ground at local elevators.

"Most importantly, it means that cash basis likely stays wide or unattractive," said Blohm. With ample supply, end users and grain buyers have little incentive to offer competitive prices.

Arlan Suderman, chief commodities economist at StoneX, highlighted specific regional bottlenecks. "Many buyers for the rail market have no bid currently, with China absent from the market. That means those bushels need to be stored, further aggravating what was already going to be a tight storage situation."

Basis levels are already under pressure. In some markets in the Dakotas, basis for new-crop soybeans is as much as $1.85 or more below Chicago futures. That basis weakness is radiating outward to other Midwest areas, creating a ripple effect.

Suderman urges farmers to take action now. "There may be an opportunity to capture basis improvement and market carry if they can find space for bushels at harvest," he said. "Some buyers are only accepting cash sales this fall, which could trap unprepared farmers."

Farmers who anticipate a storage shortfall should evaluate indoor alternatives first. Existing buildings can hold grain temporarily-up to three months-if it isn't stacked against outside walls.

Another increasingly popular option is grain bagging. A 10-foot diameter grain bag stores approximately 60 bushels per foot. Grain should be dry and cool before bagging. The cost is generally 5-7¢ per bushel, though the initial investment in loading and unloading equipment can range from $50,000 to $165,000.

Temporary outdoor storage is viable with proper preparation. Corn with 15% moisture or less can be piled without cover during cooler months. But success hinges on a well-prepared storage pad with adequate drainage and maneuvering space.

A standard truck turnaround area requires ¼ to ½ acre, or a 130-foot diameter. The pad should include a 1-2% slope, and be compacted to at least 95% of standard proctor density. Farmers can mix lime, fly ash, or cement into the soil to reduce water permeability. Lining the surface with 6-millimeter plastic sheeting helps prevent ground moisture from damaging stored grain.

Pile construction is critical: minimize the auger drop height to ensure proper slope formation. Tarps are advisable if grain will be exposed for extended periods, especially in wet fall conditions.

To prevent spoilage, ventilation systems can be installed. Use low-velocity fans delivering 0.1 cubic feet of air per minute per bushel. Ducts should extend about 70 feet beyond the grain pile. For longer piles, consider a T-shaped duct layout to ensure airflow reaches the center.

Farmers must begin strategic storage planning now to avoid a crisis during peak harvest. Communication with local grain buyers and co-ops is critical, especially as some are implementing stricter cash-only policies.

Storage shortages could also create price pressure, particularly on basis levels, which are already wide in some regions. But for those with capacity and planning, there may be opportunity: wide basis now could narrow later, creating room for profitable basis trades if the grain can be stored.

With input costs still elevated and market volatility rising, post-harvest logistics may determine profitability for many growers this year. Proactive storage solutions-indoor, bagged, or outdoor-will be vital tools for maintaining flexibility and avoiding harvest bottlenecks.

In short, the 2025 harvest could be a logistical test for U.S. agriculture. With record yields in sight, success may depend not only on what's grown, but on where it goes-and how well it's stored.