Grain elevators are facing significant challenges as basis levels are the highest seen in years. CoBank Knowledge Exchange Division Manager Tanner Ehmke says farmers need to remember their grain elevators and co-ops are struggling, too. “Pipeline supplies of grain are diminished, because of the difficult growing season. We’ve also had a propane crisis in parts of the U.S.” Ehmke says tight margins can have a very significant impact on an elevator’s profitability. “Margins have been consistently negative for grain handlers and then, they get hit with a year of tight basis and short propane. That may raise the risk for the elevator of other opportunities for mergers or acquisitions.” Read CoBank’s latest report.
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