Flexibility in cash flow, increased competition from buyers, confidence in being paid for what is produced, and more control over price are some of the factors which have growers increasingly shifting from grain bulk handlers to on-farm storage.
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While the opportunity is there to increase returns, there is also a focus on product integrity.
Machallie McCormack, igrain senior account manager, said the business has seen a move away from bulk handlers.
From feedback she has received, Ms McCormack said there were concerns from growers around losing control over their grain.
She said this was partly to do with commingling, but also a lack of competition when selling out of the system.
"We have seen a definite trend from growers towards selling more ex-farm grain than ex-warehouse," Ms McCormack said.
"There is a strong correlation between a lack of competition for warehouse grain and growers storing more on-farm.
There is a strong correlation between a lack of competition for warehouse grain and growers storing more on-farm.
- Machallie McCormack, senior account manager, igrain
"You may have only two buyers competing for warehouse grain which leads to a lower price.
"We are currently trading approximately 70 per cent on-farm grain and 30pc warehouse. We will look to go 100pc on-farm in the next two to three years."
Ms McCormack said while the trend was away from bulk handlers, there remained some growers that were sticking with them.
"There are those growers who have always used GrainCorp who will still do so," she said.
"There will always be an element of traditional users who may not see on-farm storage as viable."
She said there would also be some operators for whom executing out of GrainCorp was simply easier.
However, while the two day payment terms were useful, she said they weren't a big incentive for those who don't need the cashflow.
This was why bigger enterprises increasingly saw on-farm storage as a better option.
"It gives them more flexibility in their cash flow and they can carry or sell on their own terms," she said.
"And in three and a half years, they are seeing a return on their investment. They see it as better to have bought, paid for and own an asset on-farm."
Additionally, while more growers were marketing ex-farm, Ms McCormack said there also remained plenty of room for growers to do it better.
"Growers are looking to increase on-farm storage capacity and most do it well," she said.
"In a dry year it is fine. They have been able to have silo bags in the paddock they harvested.
"As we have seen in a wet year - that needs to change. Growers need to have 12 monthly access and a more streamlined system if they want buyers to keep coming back."
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Bruce Watson and Mark Swift, Kebby and Watson, Woodbine, Tichborne, are in the process of implementing more storage infrastructure for their cropping enterprise.
Mr Watson returned to the family business in 2003 which grows a mixture of winter crops including wheat, barley, canola, triticale, chickpeas, lupins, faba beans, and lentils.
In summer they grow sorghum and mungbeans.
Prior to the recent investment, they had about 1500 tonne sealed silo storage.
"We were basically using either silo bags or just going into the bulk handling system," Mr Watson said.
"This facility we're putting in now, which we hope to have finished in time for sorghum harvest, will be a mixture of conical and flat bottom silos and will have 11,000 tonne capacity.
"It'll also have a grain dryer, a grain cleaner, a weigh bridge and a sample stand. It'll almost be a commercial facility."
They had a big summer crop area last year and if the paddocks dry out enough, they will go again this year.
"If we can make it work, we should hopefully fill it (the new silos)," Mr Watson said.
The pair decided to invest in the new infrastructure due to a lack of selling options locally.
"We grow a lot of non-deliverables," Mr Watson said. "The bulk handling system can be good if you've got straight lines of AH2 wheat, malt barley or straight lines of canola.
"You don't have the headaches of it, and there's a streamline execution.
"Rightly or wrongly, we have decided to go down the on-farm storage path."
He said with pulse crops and sorghum, they were limited with offtake options in their area.
"Traditionally we use silo bags and we've been caught out with that this year. Our sorghum yield has been sitting in bags on a part of the farm that is a bit exposed to flooding, and we just can't get to them," Mr Watson said.
"The new facility will benefit ex-farm execution so that, barring when the road goes under water, we can execute all year.
"That's been the main catalyst for us. It will speed up our logistics and give us flexibility."
While it is hard to determine when the facility will see return on investment, Mr Swift said it will have financial benefits.
"Bulk handlers can be expensive to be honest," he said. "If you have a run of a straight commodity that doesn't have complications, it can be ok.
"If you don't require a cash flow injection, or you can manage your cashflow injection in an alternative way, there are options.
"This sort of storage gives you the opportunity, with the pulses especially, to hit the market at the time to maximize your returns."
GrainCorp was contacted for comment, but was unable to reply before The Land went to print.
