In Iowa, 72% of the 1.4 billion bushels of licensed grain storage capacity is held by cooperatives, Jacobs said in a study published shortly after the provision was found to be problematic. That means the argument could be made that the law, if unchanged, wouldn’t create a significant grain-movement challenge in parts of Iowa. The percentage is similar in Kansas.
“Cooperatives in both states use ground piles to manage harvest gluts, and if this law sticks, that challenge may be exacerbated in the short term,” Jacobs said. “But cooperatives and producers would respond to the economic incentives to invest in grain storage in that case. Condominium grain storage is another option for producers to mitigate storage constraints.”