Grain Condo Storage FAQ

Condo Storage FAQ

What is grain condo storage?

Grain condo storage is grain storage space that ALCIVIA sells to producers to store #2 yellow corn and #1 yellow soybeans under an initial 10-year agreement. This allows producers to take advantage of ALCIVIA’s commercial speed, space, and market utility.

What are the benefits of ALCIVIA’s condo storage for the producer?

  • It positions a producer’s grain closer to the market utilizing key rail (CPKC, BNSF, UP), river (Mississippi and Illinois), and trucking and logistics assets to take advantage of sales opportunities.
  • ALCIVIA’s grain bins are built and ready to provide both speed and storage space.
  • Allows for a viable and economic alternative for grain storage when producers do not wish to make additional investments in on-farm storage:
    • Condo storage reduces the need for on-farm grain bin storage and the labor to manage it.
    • Removes the permitting requirement for building additional on-farm grain storage.
    • ALCIVIA insures all the grain stored in our bins.
    • Producers can avoid increases in property insurance related to on-farm storage.
    • Eliminates the worry, maintenance, and expense related to weather and other damage to on-farm grain bins.
  • Grain is fully insured by ALCIVIA.
  • Quality is guaranteed. Producers can eliminate grain quality management risks they may otherwise face when storing grain on-farm.
  • Condo storage at an ALCIVIA grain marketing elevator may mean less grain handling which reduces handling and trucking related costs. ALCIVIA also offers on-farm pickup to simplify the process even more.
  • Contracted condo space is reserved and guaranteed for the producer during for term of the agreement.

How much storage space is available?

Agreements are first come, first sold until available storage space is sold out.

Which ALCIVIA locations are currently offering condo storage?

  • Evansville, WI
  • Fall River, WI
  • Hager City, WI – Availability for condo storage subject to build completion date.
  • Osseo, WI

What grain can I store in condo storage?

  • #2 Yellow Corn (up to 100% of your total storage capacity)
  • #1 Yellow Soybeans (up to 40% of your total storage capacity)

What moisture is ALCIVIA drying and shrinking the corn to?

15%

What happens if I want to store grain that doesn’t meet #2 Yellow Corn or #1 Yellow Soybean specifications?

All corn and soybeans delivered to your condo storage must meet those specifications. If not, you are still able to store your grain, but all standard grain discounts and fee schedules will apply.

Is there identity-preserved storage available?

Identity-preserved storage is not available.

What is the minimum and maximum amount of storage I can contract?

There is a 10,000-bushel storage minimum. Available storage space at the elevator will dictate the maximum storage available to be contracted.

What is the length of the initial condo storage agreement?

The initial condo storage agreement is for a period of 10 years.

What happens when the 10-year agreement is complete?

ALCIVIA will buy back the condo storage space at $0.40 per bushel at the end of the agreement or the producer can sign a new agreement for a five-year extension.

What happens if I want to terminate my agreement early?

The agreement is for a period of 10 years. If your storage is no longer needed, you may sell or transfer ownership to another party with ALCIVIA’s approval or sell your storage space back to ALCIVIA at $.40 per bushel.

Do I have to sell my grain in condo storage to ALCIVIA?

You are not required to sell your grain to ALCIVIA, though there are many advantages in doing so. Fees will apply.

What is the one-time purchase cost associated with the condo storage agreement?

There is a one-time cost of $2.50 per bushel of storage contracted. For example, if you purchase 20,000 bushels of storage on a 10-year agreement, payment of $50,000 (20,000 bushels x $2.50) is due upon signing.

Are there financing options available for the condo storage agreement?

Northland Capital is offering 10-year financing programs with annual payments. Such financing agreements are with Northland Capital and subject to their approval.

What service fees are associated with condo storage?

  • Annual
    • An annual service fee of $0.15 per condo storage bushel is due each year prior to September 1. This fee is subject to change after the first two years of the agreement at ALCIVIA’s discretion as real estate taxes, insurance premiums, and electricity costs change each year.
  • Reloading Storage
    • Once you reach your storage capacity, and either loadout or sell your grain, there is a $0.05 per bushel fee for the amount reloaded into your condo storage.
  • Services
    • $0.25 per bushel loadout fee to sell to a third party or to haul offsite.
    • $0.10 per bushel to move to grain bank which offsets ALCIVIA freight costs.
    • All standard grain discount and fees schedules apply.

Let's talk.

If you are ready to take advantage of commercial speed, space, and market utility, we’d love to talk. Please reach out to us.

Email: condo@ALCIVIA.com
Phone: 608.819.4444