Grain Banks in South Dakota

Abstract

Grain banking is a relatively new feed merchandising technique being used by country elevators in South Dakota. In simple terms, grain banking is any kind of an arrangement whereby farmers deposit feed grain at the elevator, and later withdraw it in one form or another, generally as mixed feed. Many country elevators have shown interest in grain banking as a means of utilizing surplus storage capacity and expanding services offered to farmers. Because of this interest, information is needed to guide elevator managers in developing more efficient and uniform methods of grain banking. This study obtained information about the operating policies and procedures and economic benefits of grain banking for elevators in South Dakota. The objectives were: (1) to determine the extent and interest in grain banking, (2) to determine the importance of grain banking to storage, feed processing, and feed merchandising programs, and (3) to develop guides for more efficient use and management of grain banks and feed mills