Steven Kilger, the host of the Feed & Grain Podcast, talks with Tanner Ehmke, the lead economist for grain and oil seeds at CoBank, as his guest. They discuss Ehmke's report titled "Rising Cost of Grain Storage Will Force Elevators to Lower Bids, Widen Basis."
Ehmke explains that the current economic environment, characterized by inflation, rising costs of operation, and increasing interest rates, is creating a challenging situation for grain elevators. With commodity prices still historically high and interest rates rising, the cost of borrowing against commodities for elevators is expected to reach record levels. Other factors such as transportation costs, labor scarcity, and increasing expenses for electricity, fuel, and insurance are further adding to the financial burden.