While it is possible to build a grain bin out of wood, this is not the most cost-effective option. The best way to save money when building a grain bin is to use steel.
Steel is much more durable than wood and can be re-used for as long as you want. It also lasts longer than concrete or plastic bins. The only problem with steel bins is that they cost more up front. If you plan on keeping your grain bin for many years, however, it may be worth the expense.
The two biggest factors in determining how much it costs to build a grain bin are materials and labor costs. The type of material you choose will affect both these figures greatly; if you use steel instead of wood, for example, your labor costs will decrease while your material costs increase dramatically.
The price of building a grain bin can vary depending on the size, material, and location. The chart below shows the average price of a new grain bin in the United States.
The cost of building a grain bin varies depending on where you live and what type of material you use. You can also save money by doing some of the work yourself or hiring someone who will do it for less than an experienced contractor.
A basic 12-foot by 12-foot bin made from 4×4 posts and 2×6 boards would cost about $3,000. This includes labor and materials but not shipping costs or taxes if applicable.
A 36-foot by 36-foot bin made from 4×4 posts and 2×6 boards would cost about $10,000 including shipping costs and taxes if applicable
Cost Factors for Building a Grain Bin
- Size: The larger the size of your grain bin, the higher the cost will be.
- Location: Consideration of where the grain bin will be built affects the overall cost.
- Materials: The type and quality of materials can significantly impact the price.
Cost Estimates
| Structure Type | Cost Estimate (per square foot) |
|---|---|
| Simple Rectangular Structure (Concrete Blocks) | $10 |
| Complex Round Structure (Steel) | $30 |
| Wood Grain Bin House (Treated Lumber, Not Insulated) | $3,000 to $10,000 |
| 10-foot by 20-foot Bin | $1,000 |
| Larger Structure (Multi-level) | $3,000 to $10,000+ |
Construction Considerations
- Material Types: Options include wood, metal, or concrete.
- Shape: Grain bins can be round or square.
- Insulation: Determine if insulation is needed and how to implement it.
Labor Costs
- Hiring Professionals: If you choose to employ an experienced carpenter or construction team, labor costs will vary based on location and complexity of the project.
- DIY Options: Self-construction can save labor costs but may require extensive knowledge and effort.
Summary of Cost Ranges
| Feature | Cost Range |
|---|---|
| Small Wooden Grain Bin | $3,000 to $10,000 |
| Average Steel Grain Bin | $8 to $15 per square foot |
| Complex Construction with Steel | Up to $30 per square foot |
🧱 How It Works
- In 2020, growers paid about $2.50 per bushel of ready-to-use storage capacity. By 2024, costs rose sharply. “Both said they spent around $2.50 per bushel … then.”
- A full grain center today costs roughly $9–$10 per bushel, including site, foundation, electrical, handling, and labour. “It would cost $9 to $10 per bushel to start from scratch…”
- Simple bins with concrete foundation cost about $3/ bushel, rising to ~$3.50–$4 when adding drying, augers, and wiring. “Industry experts put the cost … at around $3 per bushel … add … $3.50 … headed toward $4 per bushel.”
- One producer in Indiana reported final costs at $4.00/bushel, including interest. “He stated his cost was $4.00/bu all in including interest.”
📋 Materials or Tools Needed
- Grain bin unit
- Concrete foundation
- Electrical, auger, elevator systems
- Drying or aeration equipment if used
- Labor and machinery for installation
⚙ Step‑by‑Step Considerations
- Compare historical vs current costs
- In 2020: ~$2.50/bu
- Now: $3–4+/bu depending on equipment and full system
- Check delivery lead times
- Contractors in regions hit by storms (e.g. Indiana) are already backlogged for Fall 2024.
- Evaluate local installer availability
- Bin manufacturers may have stock, but erection crews may be scarce in damaged zones.
- Assess your urgency vs forecasted cost trends
- Costs have doubled since 2020 and show no signs of falling.
- Costs have doubled since 2020 and show no signs of falling.
- Calculate ROI and opportunity cost
- Use partial budgeting: consider saved shrink, elevator charges, price carry vs depreciation, interest, maintenance.
- Use partial budgeting: consider saved shrink, elevator charges, price carry vs depreciation, interest, maintenance.
✅ Pros and Cons
| ✅ Pros of Building Now | ⚠️ Cons or Risks |
|---|---|
| Lock in storage before costs rise further | Higher current unit cost vs past (~$2.50/bu) |
| Contractors booking may tighten soon | Erection delays if local capacity constrained |
| Having storage helps during harvest pinch | Full-build costs including handling, electrical, interest (~$3–4+/bu) |
🔍 Compared with Waiting
- Waiting for price relief is risky: inputs and labor show no signs of declining. “Storage construction inputs have been extremely inflationary… I don’t see any deflation.”
- Delays might push finishing beyond fall, increasing risk of missing harvest. Some builds (e.g. Nugent farm) took nearly a year from contract to install during harvest time.
💡 Common Mistakes to Avoid
- Assuming bin manufacturers equate to installation availability—lack of crews may delay delivery.
- Underestimating full system costs—quotes often exclude drying, electrical, and handling.
- Waiting for discounts—market shows rising or flat trend, not recession-like dips.
- Skipping ROI modeling—throwing on bin without cost-benefit math may lower returns.
👷 Who Should Consider Building Now
- Growers facing limited elevator space or recurring harvest delays.
- Farms with economies of scale, multiple bins pending, or long-term storage strategies.
- Locations vulnerable to storm or climate disruptions where delay logistics add risk.
🧰 Expert Tips
- Contact multiple erection contractors early to book Fall installations.
- Run a partial budget: include depreciation (25‑year life), interest, handling savings, and cash flow.
- Consider temporary or modular bin rings if full build is delayed but needed urgently.
- Factor in insurance and property tax increases when calculating ownership cost.
📌 Quick Facts
- 2020 cost: ~$2.50/bushel
- 2024 bin build: ~$3–4/bushel including foundation, augers, electrical
- Full grain center: $9–10/bushel including handling and site infrastructure (Farms Progress)
- One example: ~$4.00/bushel all-in cost reported by grower in Indiana
How much does it cost to build a grain bin house
The average cost of building a grain bin home is around $50,000. Grain bin homes are prefabricated structures that come in three different sizes: 12×32 foot, 16×32 foot and 20×40 foot. The larger the grain bin house you want to build, the more expensive it will be.
The price of a new grain bin home will depend on the size of your home and how many features you want included in it. If you opt for a smaller grain bin home, then your costs will be less than if you went for one that was bigger in size. However, if you want more features such as insulation or double-pane windows, then this could increase the overall price of your grain bin home.
On average, it costs around $2 per square foot to build an above-ground structure like a silo or barn. If you have access to construction equipment such as cranes or excavators then this could reduce costs considerably
Grain bin homes are made from steel silos, which are large metal containers used to store and preserve grains and other foods. A grain bin home can be built as a one-story or two-story structure, with the first floor being partially underground. The entire structure is built around the steel silo so that it forms the center of the home.
Grain bin homes typically cost between $30,000 and $50,000 to build. This includes costs for materials like wood for framing and insulation, concrete for foundations and floors, wiring for electricity and plumbing for water pipes. It also includes costs for labor such as construction workers who help put up walls, install windows and doors, frame roofs and hang drywall on walls inside the home.
Putting up a steel silo is not difficult but takes time because it involves building heavy walls around the existing structure using concrete blocks or bricks that must be cemented together by mortar. You also have to attach metal brackets along each side of each block so
A grain bin house is a structure that can be built on top of a grain bin. The roof of the house is the top of the grain bin, and so it’s possible to build a home there. This can be done because grain bins are made from steel, which is strong enough to support the weight of a home. You can use them for other purposes as well — such as creating shelter for livestock or storing things in general — but they’re most commonly used for housing humans.
Grain bin houses are popular in some parts of the United States where land is cheap and there are plenty of old grain silos available. They can often be purchased from local farmers who no longer need them, and they can be found all over the internet if you look hard enough.
If you’re looking for a new home but don’t have enough money to buy one, then building one out of an old grain silo might just be the answer you’ve been looking for.
For an average-sized bin, the cost of building a grain bin house is about $1,500 to $2,500. The size of your home will vary depending on how many people you want to live in it, but for most homes, the average square footage is around 1,300. This means that if you want to build a large home with plenty of space, you’ll end up paying more than $3,000 for your grain bin.
The size and shape of your bin can also affect how much it costs to build. Some bins are round and cylindrical while others are rectangular or square. Round bins are easier to build because they don’t require any corners or angles — just straight lines that can be drawn using a ruler or tape measurer. Rectangular bins will have more complex designs and require a lot more time and effort during construction.
A grain bin house is a prefabricated house that comes in a kit and can be assembled on-site quickly and easily.
Comparing the Silo with the Grain Bin
Despite the fact that both grain bins and silos are viable options for storing grain, there are a few significant differences between the two that determine which structure is more suitable for a farming operation. In the end, the primary differences between grain bins and silos can be broken down into three categories: the appearance, the storage capacity of the grain, and the operational capabilities.
With regard to these areas, grain bins and silos are distinguished by the following.
The appearance of grain bins and silos is distinct from one another.
While grain bins and silos both have a cylindrical shape, there are a few distinguishing characteristics that set them apart from one another. There is a wide range of shapes that can be found in grain bins, ranging from short and wide to tall and narrow. These bins typically have peaked roofs that are made of metal. On the other hand, silos are typically more uniform in shape, but they can be made of a variety of materials. Silos are available in a variety of materials, including concrete, metal, brick, and wood, and they are typically taller and more slender.
Second, grain is stored in grain bins, while silage is stored in silos.
The types of grains that are stored in silos and grain bins are a significant distinction between the two types of storage. All of the dry grains that are most widely used for human food or for the production of fuel are stored in grain bins. These grains include wheat, corn, oats, seeds, soybeans and barley. Silos, on the other hand, are exceptionally well-suited for the storage of silage, which is a fermented form of pasture grass that is used to feed livestock throughout the winter.
- The purpose of these grain storage towers is different from one another
The functions of grain bins and silos are fundamentally different from one another due to the fact that they store different kinds of grains. The one-of-a-kind construction of a silo induces fermentation, which helps to preserve the silage. On the other hand, the objective of a grain bin is to ensure that its contents remain dry, undamaged, and free of pests. To accomplish this, a grain bin must allow for adequate aeration and maintain appropriate humidity and temperature levels to prevent spoilage.