Costs, supply chain issues challenge farm construction | Business | agupdate.com

2022-06-18 05:00:20 By : Ms. AOTONG Mou

Many farmers have been looking to put up new grain bins or farm buildings, although rising costs and supply chain challenges have provided obstacles to some building projects.

Director of grain sales for GSI Roger Price says lead times for new grain bins are still fairly manageable, but there continue to be issues with steel.

“It’s been a challenge between steel prices and steel availability,” he says.

Price says drying systems have seen longer waits than grain bins.

University of Missouri ag engineer Joe Zulovich says the supply issues are varied.

“Price and availability of materials is hit and miss,” he says.

Zulovich says many material suppliers are struggling with difficulty finding labor, as is the transport sector.

“Availability of commercial truck drives is a real issue,” he says.

Iowa State University Extension farm and ag business management specialist Kelvin Leibold says the new building continues, although farmers are sorting through the costs.

“Producers also seem to be investing in expensive shops/offices,” Leibold says. “But not at the rate before the high cost rises for steel and lumber. I would say that the question today is, “Do construction costs come down in the near future or will inflation offset any reduction in construction materials?”

Get the latest local business news delivered FREE to your inbox weekly.

Ben Herrold is Missouri field editor, writing for Missouri Farmer Today, Iowa Farmer Today and Illinois Farmer Today.

Email notifications are only sent once a day, and only if there are new matching items.

Get up-to-the-minute news sent straight to your device.