The boom times for US agriculture in 2011 have focused on soaring land and crop prices, bumper harvests and biofuels, but a recent deal has spotlighted a quiet industry that's booming: grain storage.
Agco, the world's third-largest farm equipment manufacturer, this week finalized its purchase of grain storage manufacturer GSI Holdings for $928 million.
Analysts estimate annual revenue of the global grain storage sector at $3.5 billion.Some other data points:
- In recent years some big investors have begun playing in the grain storage business. Gavilon of Omaha, NE, has bought grain storage facilities from Oregon to Ontario ...
- US grain storage capacity has expanded 12 per cent since 2005, coinciding with the jump in ethanol.