Grain Sheds Versus Grain Silos

Grain Sheds Versus Grain Silos (Pros, Cons & Prices)

  • 5 Minute Read

Grain sheds or silos? If you find yourself weighing up between grain sheds or silos for your on-farm storage, rest assured this is a common scenario.

We find it is a good idea to look at the advantages and disadvantages of both storage options.

And to consider how they stack up with your storage requirements.

A classic example is to check whether your grain is suited to shed storage. Will it improve logistics at harvest? Does it work with your plans for the future?

And ask the same questions about grain silos too.

Regardless of the storage option that you choose, it is important to be confident that you have made the right decision.

And most importantly, you should be able to capitalise on the benefits of on-farm grain storage such as a less stressful and more efficient harvest. 

So, in this article we provide a comparison of grain sheds versus grain silos to get you started – keeping in mind that both have their advantages and that the “right” choice will depend on your unique operational requirements.

For example, you might find that a mix of storage types works best.

Grain Sheds Versus Grain Silos

Top 3 Benefits Of On-Farm Grain Storage

The benefits of effective on-farm grain storage have been proved time and time again by cropping enterprises – particularly at harvest, but also throughout the year.

And mixed operations and livestock enterprises benefit too, whether the storage is used as part of a drought management strategy, as a tax deduction or just to give you more options around whether you buy, sell or store grain – saving you money and/or increasing your income.

Plus versatile storage assets such as concrete panel sheds can be used year-round. 

Here are three ways that expanding your on-farm grain storage can benefit you.

1

Capitalise On Market Opportunities

Take advantage of higher market prices, by storing your grain on-farm and then selling when the prices are right. 

Having the ability to do this increases your profitability and provides income flexibility. 

As a result, grain storage assets such as silos and sheds can have an excellent return on investment.

You can calculate this using this basic formula:

 ROI = Profit / Initial Investment x 100%

2

Improve Operational Efficiencies

There are a number of ways that having bulk storage facilities on-farm can improve operational efficiencies such as reducing the time and labour required to store your grain.

And, because you aren’t dependent on an external third party, it  can also help avoid delays at harvest.

With deadlines and unpredictable weather to contend with, anything that can free up your time and reduce stress at harvest is a winner!

3

Increase Profitability

Along with allowing you to sell your grain when the prices are right, effective on-farm storage can increase your profitability by:

  • Maintaining grain quality and  market value
  • Reducing losses
  • Saving money on external bulk handling costs such as freight
cost to build a grain shed - silos

So, there is no doubt on-farm grain storage is beneficial – but what are your options? And which is best?

On-Farm Grain Storage Options

The most common options for storing grain on-farm are grain tarps or storage bags, silos or sheds.

While silos and sheds can be used for long-term bulk storage, grain bags and bunker tarps are best used as a short-term solution. 

You can find a comparison of these options here – What Is The Best Way To Store Grain?

Next, we discuss grain sheds versus grain silos – the advantages, the disadvantages and when they are a good fit.

First up, grain silos.

Using Silos For Your Grain Storage

Silos are by far the most common way to store grain in bulk. This is primarily because silos can be fumigated and effectively sealed – and there are also a range of different options available. These include cone silos, flat bottomed silos or smaller movable silos.

"Silos are the most common method of storing grain in Australia, constituting 79% of all on-farm grain storage facilities nationally"
Stored Grain Information Hub

Advantages Of Grain Silos

Here’s why grain silos work and when they are a good fit:
  • Quality control with fumigation, sealing and strict segregation
  • Effective long term storage
  • Well suited to high-grade, high-value wheats (or grains that cannot have protectants applied)
  • Approx. 25 year lifetime
  • Variety of options available such as cone bottomed silos which are quicker to unload and easy to keep clean

Disadvantages Of Grain Silos

There are a few potential drawbacks to keep in mind when it comes to grain silos and working out whether they are a good fit:
  • Not a multi-use asset
  • Cone bottomed silos, while quicker and easier to use, are limited to smaller capacities
  • Present a significant safety risk when working at height, inside a silo or when using older silos. 
  • High cost per tonne particularly when storing small quantities and not a cost-effective way to store feed-grade wheat. Plus, the extensive pad preparation and loading systems for each silo can be cost prohibitive. 
  • Not suited to high-moisture grains as they are difficult to empty out of silos.

So, there are several points to weigh up when making your decision.

Often a deciding factor is price. So, how much does a grain silo cost? We do the sums below. 

How Much Does A Grain Silo Cost?

On average a grain silo costs approx. $300 per tonne including GST but not including freight, site preparation or installation.
 
The cost will depend on factors like the supplier, the design (such as flat bottomed or cone), loading systems, your location and the capacity.
 

Generally, the larger the silo the more cost-effective it is per tonne. For example, smaller scale silos can cost $350+ per tonne, while larger scale flat bottomed silos can be around $160+ per tonne. 

With steel prices fluctuating and prices varying between suppliers, it is a good idea to research current prices for grain silos from companies like GE Silos or SilOZ.

Moving on to the next part of our comparison of Grain Sheds Versus Grain Silos, let’s look at grain sheds.

Using Sheds For Grain Storage

While traditionally not as popular as grain silos, grain sheds are becoming valuable assets for cropping enterprises and an important part of their on-farm storage mix.

Bumper crops in recent years have seen an increased investment in grain storage sheds and concrete panels sheds have been the go-to design rather than the older style inside-out sheds. 

The concrete panel grain shed design is effective, cost-efficient and very versatile – and typically features a steep roof pitch to accommodate the angle of repose of the grain. 

Grain shed at Watchem with canopies

So, should you invest in a grain shed?

Well, let’s weigh up the pros and cons.

Advantages Of Grain Sheds

Grain sheds are growing in popularity and that is for a number of really good reasons such as providing a cost-effective bulk storage area or improving efficiencies year-round. 

Here are some key advantages to consider when it comes to grain sheds:

  • Long lasting and low maintenance assets.
  • Easily customised designs. For example, canopies are a smart additions as they provide an easily accessible undercover area for trucks and machinery
  • Versatile and multi-use assets. Have an empty grain shed at cropping? Store your fertiliser in the shed. Or store your headers in the off-season. This provides excellent value for money
  • Cost-effective and low cost per tonne
  • Safe and straightforward grain handling
  • Ideal for low grade wheats, canola, barley and grains such as faba beans that require good aeration. And easily segregate these with concrete panels.
  • Can be fumigated
Concrete Panel Grain Sheds

While there is no doubt that grain sheds prove very beneficial, it is also important consider the possible downsides.

This helps makes our discussion around Grain Sheds Versus Grain Silos an open and honest comparison.

Ultimately this helps you make the right choice for your grain storage. 

So, what else do you need to know about grain sheds?

Let’s take a look at some situations where a grain shed is not the best storage option. 

Disadvantages Of Grain Sheds

  • Often not suited to high-grade wheats due to limited sealing options or if the shed has not been designed for fumigation. 
  • A high level of hygiene needs to be maintained after using your shed in the off season.
  • Concrete panels are not the most effective segregation option if strict, detailed segregation is required. 

Those are the three main drawbacks of grain sheds – you may be able to think of others that apply to your operation, or they may not be an issue for you at all.

To wrap up our comparison, let’s take a look at grain shed prices.

How Much Does A Concrete Panel Grain Shed Cost?

Concrete panel grain sheds usually cost between $100 – $200 per tonne including GST and installation.
 

Factors like shed size, design and location will mean that the price does vary from project to project.

And, like grain silos, the larger the shed the more cost-effective it is per tonne -and a longer shed is usually more cost-effective than a wider shed. 
 
Here are some examples to show you how grain shed prices can vary  – and it give you an idea of how much you can expect to pay for a grain shed:
  • A 30m x 18m grain shed stores 1,500 tonnes and costs approx. $150 – $190 / tonne.
  • A 36m x 24m grain shed stores 3,000 tonnes and costs approx. $130 – $160 / tonne.
  • A 56m x 27m grain shed stores 6,000 tonnes and costs approx. $100 – $135 / tonne.

And, you can learn more here – Concrete Panel Grain Sheds (Pros, Cons & Prices)

So, that wraps up our discussion on grain sheds. On to the verdict!

What Is The Verdict On Grain Sheds Versus Grain Silos?

While we build grain sheds and have proved them to be a great on-farm storage option, the key takeaway from this discussion is to choose the option that works for you.
 
It’s clear that both sheds and silos have their upsides and drawbacks and are suited to different scenarios. So, weigh these up before you make your decision.
 
For example, if you are storing high-grade wheat that requires carefully sealed environment – then grain silos may be the way to go.
 
On the other hand if you are storing faba beans or a similar product and want to create a multi-use storage shed, then look no further than a grain shed for effective storage and great value for money.
 
Or you might find that a mix of storage assets will set your cropping operation up for the future – providing flexibility and additional opportunities to make money, save money and improve  the day-to-day operations. 
 
So, we hope the discussion on grain sheds versus grain silos has been helpful! If you are leaning towards a grain shed, check out some of the useful resources below.

Grain Shed Inspiration Gallery

Useful Resources

If you found this article helpful, you might also like to check out the Learning Hub which includes more articles, brochures, videos and price guides. Or to get your grain shed project planning underway, please get in touch – we would love to hear from you!

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