Farmers attending Iowa Ag Expo wonder when steel prices will soften

By Filed Under: Crops, Iowa, News

Farmers interested in adding grain storage capacity are wondering when steel prices will soften.

Kent Craighton with Iowa-based Sukup Manufacturing, the world’s largest family-owned manufacturer of grain handling equipment, tells Brownfield there aren’t many indications the cost of steel will be coming down soon.

“And there’s a lot of different types of steel. The type of steel we use, coil galvanized, has not really softened a whole lot yet. And from what we can tell, it’s probably not going to anytime real soon. That doesn’t mean it won’t in the future, but as of right now it’s not looking like that.”

Despite steel costs contributing to a larger price tag for a new bin, he maintains it’s still one of the best investments a farmer can make.

“Just look at the current soybean market, guys who had soybeans harvested back in September, October, November are pretty well off right now if they were able to hold onto that until (now). They probably were seeing $3 to $4 increase in what was available to them last fall.”

Craighton says from a manufacturing standpoint, lead times on grain bins ordered this winter are only a few months out despite continued supply chain challenges.

Brownfield interviewed Craighton Wednesday at the Iowa Ag Expo in Des Moines.