Agricultural Equipment Financing
Finance Grain Bins & On-Farm Storage
Axiant Partners connects farmers with lenders for grain storage — bins, dryers, augers, and conveying systems. USDA FSFL program knowledge. GSI, Brock, Sukup, Hutchinson all financed.
- ✓ Grain bins, dryers, handling equipment
- ✓ USDA FSFL program knowledge
- ✓ Real property and equipment loans
- ✓ Section 179 eligible equipment
- ✓ Decision in 24–48 hours
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Grain Bin and Storage Financing — GSI, Brock, Sukup, Hutchinson Complete Guide
Finance on-farm grain storage from $15,000 (single hopper bin) to $500,000+ (commercial complex). Critical: grain bins are often real property — affects your financing options. USDA FSFL program is often the best first step.
Key Facts: Grain Bin Storage Financing
- Small System: Single hopper bin $15,000–$50,000 | Small farm complex $60,000–$120,000
- Large System: Commercial storage complex $150,000–$500,000+
- Key Legal Issue: Permanently installed bins may be real property (mortgage lien required)
- Best First Option: USDA Farm Storage Facility Loan (FSFL) — below-market rates
- Major Brands: GSI (AGCO), Brock (CTB), Sukup, Hutchinson
- Section 179: Grain bins qualify for immediate expensing
- Grain Dryers: $25,000–$120,000 — generally personal property, easier to finance
About Grain Bin Financing
On-farm grain storage is one of the most economically sound investments a grain farmer can make. By storing grain at harvest and selling when prices improve, farmers with on-farm storage consistently achieve $0.30–$0.80/bushel better prices than forced-harvest sellers. A 50,000-bushel storage system used to capture $0.50/bushel price improvement generates $25,000 in additional annual revenue — often exceeding the annual loan payment on the storage investment.
However, grain bin financing has unique legal complexities that affect which lenders can participate and what type of lien they can take. Understanding the real property vs. personal property distinction before beginning the financing process will save significant time and avoid last-minute closing complications.
Grain Storage System — Brand Comparison
| Brand | Parent Company | HQ | Specialty | Notes |
|---|---|---|---|---|
| GSI | AGCO Corporation | Assumption, IL | Full storage systems, bins, dryers | World's largest grain bin mfr. |
| Brock | CTB Inc. (Berkshire Hathaway) | Milford, IN | Commercial and farm storage | Strong in commercial grain |
| Sukup | Sukup Manufacturing (private) | Sheffield, IA | Bins, dryers, handling | #2 bin manufacturer by volume |
| Hutchinson | Mayrath Industries | Clay Center, KS | Augers, conveyors, portable handling | Known for portable equipment |
Grain Storage System Cost Breakdown
| System Component | Capacity / Size | Cost Range | Property Classification |
|---|---|---|---|
| Hopper-bottom bin | 5,000–20,000 bu | $8,000–$35,000 | Often personal property if portable |
| Flat-bottom storage bin (small) | 20,000–50,000 bu | $20,000–$60,000 | Usually real property (anchored) |
| Flat-bottom storage bin (large) | 50,000–250,000 bu | $60,000–$250,000 | Real property — permanent |
| Grain dryer (farm scale) | 1,000–3,000 bu/hr | $25,000–$80,000 | Personal property — movable |
| Grain dryer (commercial) | 3,000–8,000 bu/hr | $80,000–$120,000 | Personal property or fixture |
| Leg elevator and conveyor | Per system | $30,000–$120,000 | Usually real property (permanent) |
| Portable grain auger | 6"–13" diameter | $3,000–$15,000 | Personal property — movable |
| Complete small farm system | 100K bu storage | $80,000–$180,000 | Mixed |
| Commercial storage complex | 500K+ bu | $250,000–$500,000+ | Real property |
Real Property vs. Personal Property — The Critical Distinction
When a grain bin is permanently bolted to a concrete foundation and connected to permanently buried electrical and conveying systems, most states will classify it as a fixture — meaning it has become part of the real estate. This is the most common classification for flat-bottom storage bins with permanent foundations. The practical consequence: a standard equipment lender cannot take a valid first-lien security interest in the bin because it's real property, not personal property.
This means only lenders who can make real estate loans — primarily Farm Credit institutions and commercial banks with agricultural real estate departments — can provide first-lien financing for permanent grain bins. Equipment-only lenders can finance portable augers, grain dryers (if not permanently installed), and other movable components, but not the fixed bin structure itself.
Grain Bin Financing Options
| Financing Type | Provider | Best For | Key Terms |
|---|---|---|---|
| USDA FSFL (Farm Storage Facility Loan) | USDA Farm Service Agency | New on-farm storage — best first option | Up to $500K, below-market rate, 3–12 yr |
| Farm Credit Real Estate Loan | Farm Credit institutions | Permanent bins as real property | 10–30 yr, low fixed rates |
| Farm Credit Equipment Loan | Farm Credit institutions | Grain dryers, portable equipment | 60–84 months |
| Commercial Bank Ag Real Estate | Regional and community banks | Borrowers with existing bank relationships | 10–25 yr, varies |
| Independent Equipment Lender | Beacon Capital, ENGS | Portable bins, dryers, augers only | 36–60 months, UCC-1 only |
| Section 179 Deduction | Any lender | Grain bins qualify — immediate expensing | Full deduction up to $1.16M (2024) |
Ready to Finance Grain Storage?
Get matched with lenders who understand the real property complexities of grain bin financing — including Farm Credit institutions and USDA FSFL program guidance.
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Frequently Asked Questions — Grain Bin Storage Financing
Are grain bins personal property or real property for financing purposes?
This is the central financing question for grain bins. A grain bin that is permanently anchored to a concrete foundation and attached to a farm may be classified as a fixture or real property improvement under state law, requiring a mortgage lien rather than a UCC-1 equipment lien. A portable or temporarily placed bin may be personal property. In practice, most lenders treat grain bins anchored to concrete foundations as fixtures/real property. This means Farm Credit institutions (which handle both real estate and equipment) are the most efficient lenders for permanent grain storage. Always confirm the property classification with your lender and state law before closing.
How much does a grain bin system cost?
Grain bin system costs vary widely: a single on-farm hopper-bottom bin (10,000–20,000 bushel) runs $15,000–$40,000 installed. A complete small-farm flat-bottom storage system with one 30,000-bushel bin, grain dryer, aeration, and loading/unloading augers runs $60,000–$120,000. A commercial-scale grain storage complex with 500,000–1,000,000 bushel total capacity, multiple bins, a high-capacity grain dryer, leg elevator, and conveying system can cost $300,000–$600,000 or more depending on configuration and site conditions.
What are the major grain bin brands in the US?
The four major grain storage brands in the US are: GSI (Grain Systems, Inc.) — now owned by AGCO Corporation, headquartered in Assumption, Illinois. GSI is the largest grain bin manufacturer in the world. Brock (CTB Inc.) — part of Berkshire Hathaway's CTB division, headquartered in Milford, Indiana. Sukup Manufacturing — family-owned, based in Sheffield, Iowa, the second-largest grain bin manufacturer. Hutchinson (Mayrath Industries) — known for grain augers, conveyors, and portable handling equipment. All four brands are distributed through dealer networks and have established lender familiarity.
What financing programs are available for grain bins?
Grain storage financing options include: USDA Farm Service Agency (FSA) Farm Storage Facility Loans (FSFL) — a highly favorable direct loan program at below-market rates specifically for on-farm storage, up to $500,000 per borrower. Farm Credit institutions — handles grain bins as either equipment or real property depending on classification. USDA REAP (Rural Energy for America Program) grants — if adding grain drying/energy efficiency components. Independent equipment lenders — for portable bins treated as personal property. Section 179 deduction — grain bins qualify as property eligible for immediate expensing.
What is the USDA Farm Storage Facility Loan program?
The USDA Farm Service Agency Farm Storage Facility Loan (FSFL) program is one of the best-kept secrets in agricultural financing. FSFL provides direct government loans at below-market interest rates for on-farm grain storage facilities, grain dryers, and handling equipment. Key terms: up to $500,000 per borrower, loan periods of 3–12 years depending on collateral, current rates significantly below commercial lender rates, and relatively streamlined application through your local FSA county office. Most corn-belt farmers who need on-farm storage should consider FSFL as their first financing option before commercial lenders.
Can I finance a grain dryer alongside a grain bin?
Yes — grain dryers ($25,000–$120,000 for on-farm units) are typically financed alongside grain bins in the same project. The USDA FSFL program covers grain dryers as eligible equipment. Farm Credit and independent equipment lenders also finance grain dryers. Grain dryers are generally treated as personal property (mobile equipment), which can simplify the lien structure compared to permanently installed bins. For a complete grain storage system including bins, dryer, and handling equipment, bundling everything into a single Farm Credit or FSFL application is typically the most efficient approach.