Tanks Still Shining

Mid-State Tank Group of Products
Mid-State Tank Group of Products

Though worries about the impact of the drought are the topic of many conversations in ag, tank makers we talked with say they are not overly concerned. First off, many growers have crop insurance that will cover their losses. And, in fact, some farmers are seeing “phenomenal successes” with yields, reports Sid Lockhart, marketing manager with Meridian Manufacturing, a firm that does business across North America.

In fact, sales are strong for all sizes of tanks, from capacities of 2,000 gallons on up to 2 million — and customers include large-scale retailers and growers. Both fiberglass and steel units are moving well.

“A few people have backed off buying tanks, but overall business has been very good,” says Ron Lager, sales manager with Precision Tank & Equipment (PT&E). While low corn yields will leave some phosphate and potash in fields, nitrogen will be needed in various forms including liquids, he says — and his company’s tanks will be needed.

PT&E has again seen particular growth in fiberglass tank sales, to the point where the firm had to add more machinery to handle increased fiberglass production at its recently expanded plant. The reason, Lager believes, is due to the longevity and low maintenance of fiberglass tanks.

Dennis Neal, president of Enviropac, Inc. says larger national customers are continuing with expansion plans — and buying his company’s fiberglass tanks — in spite of drought and economic conditions.

At Mid-State Tank, Tom Munro reports that sales of nurse tanks at the company also grew in 2012, but he believes it is too early to tell if this market will be affected by drought issues.

“Demand for and use of liquid tanks is definitely on the increase, whether it’s large agribusiness or on-farm,” says Lockhart. Meridian builds single-walled, multi-purpose hopper bins for liquid fertilizer. Actually, the coated, smooth-walled stainless steel design allows use for liquid fertilizer, grain, granular fertilize, or water, depending on the time of year.

Large-Scale Challenges

Heartland Tank LLC makes large-scale, field-erected tanks that range from 300,000 to four million gallons, and Chris Brooks, U.S. sales manager, says his staff is still “real busy.” He has eight crews doing construction exclusively for the fertilizer industry — and “we’re quoting March or April before we can start another tank,” he reports.

Brooks says a big part of each project is getting a foundation laid for the huge tanks, and that can take months. The foundations need to be carefully designed and require a registered engineer from a retailer’s state, one that knows local soils. He is telling customers they need to do six to nine months of pre-planning.

Brooks also manages sales for Heartland Tank Services, which provides inspections of tank containment systems. Many states now require an API 653 inspection by a certified inspector after so many years, with the frequency varying by state. Brooks’ crew follows The Fertilizer Institute recommended guidelines of inspections every five years. His two two-man teams will check out anywhere from 130 to 170 fertilizer tanks per year.

Neal reports that as retailers start to do API 653 inspections for the first time on big tanks with Enviro-Coat protector inside, “they’re telling us that the tanks look absolutely fantastic. It’s confirmation that the product is doing what we all anticipated it to do.”

Heartland Tank Services also sells and repairs PVC flexible membrane liners, also called bladders, which become a tank’s primary containment. The systems include leak monitoring behind and underneath the bladder.

Butch Kirk, president and CEO of International Tank Service, Inc. (ITS) says business has been quieter on the fertilizer front for his firm — which also builds large tanks for asphalt, crude oil, gasoline, jet fuel, and potable water. “It’s the same tank, it wears a lot of hats,” he says. “You just have to do that these days.”

Kirk believes this is a great time for fertilizer retailers to buy, with U.S. steel prices level or trending slightly downward — especially considering half the price of a tank build is in steel costs.

Containment Update

Again this year, Hunter Agri-Sales’ Plia-Pad unit has seen the most sales, especially as more and more states become concerned about run-off at airports, says Ken Hunter, president.

He also noted that the Plia-Pad now comes in a new synthetic material that is resistant to most chemicals and solvents, making it ideal for secondary containment. The material has been used in Plia-Dikes to line concrete chemical dikes that are cracking — and it contains fertilizer and petroleum products as well.

Meridian will soon be releasing a “pretty exciting” semi-stationary dike option, in great part in answer to customer requests for the containment.

Lockhart says double-walled tanks are a good containment solution. Meridian has been promoting this option for on-site fuel storage — versus single-walled tanks. Sales of the units have doubled every year as producers see the need for on-farm fuel, Lockhart explains.

The design includes containment within the unit and allows buyers flexibility and the choice to move a tank as a facility expands. In liquid fertilizer, the double-walled option for smaller tanks may still be considered a bit too costly.

Concerns For The Future

Because of outstanding demand for their products, tank manufacturers have found one of the biggest challenges they face has been the lead time they now need to build. And getting the staff to do the building is a real challenge. Lockhart says his firm struggles to find both the quantity and quality of labor needed to keep up with demand. Meridian has done “quite a bit” of expansion at its facilities the last few years, to create enough production capacity.

A number of tank experts we talked with emphasized the need to plan ahead — a lot — when purchasing a tank. “Even if a customer wants to expand next year, they need to start the discussion and planning now,” says Lockhart.

Neal admits that lead times at his company are getting long because sales are so good. It sounds like a good thing to a point, he says, but some possible buyers are deciding to wait to order.

Leave a Reply

Equipment Stories

SprayersNORAC Active Wing Roll Slated For More Sprayers
September 1, 2015
NORAC Systems, a member of the Topcon Positioning Group, announces the release of Active Wing Roll for RoGator, Apache, New Read More
2015 ShowStopper Award, MAGIE
EquipmentA ShowStopper From Case IH: The Patriot 2250
August 31, 2015
For nine years now, visitors to the yearly Midwest AG Industries Exposition (MAGIE) show have been tasked with not only Read More
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
Case IH Patriot 2250 Sprayer
EquipmentHigh-powered Case IH Patriot 2250 Sprayer Pushes Through The Toughest Field Conditions
August 26, 2015
Engineered with more muscle, the new 660-gallon-capacity Patriot 2250 sprayer features best-in-class horsepower, along with the fuel efficiency that comes Read More
Top 100 Articles
Crop InputsLand ‘O Lakes, United Suppliers Finalize Merger
August 24, 2015
According to a press release on August 24, owners of United Suppliers, Inc. and members of Land O’Lakes, Inc. “have Read More
West Central Cooperative, Jefferson, IA
CropLife 100Iowa Cooperatives To Explore Unification
August 19, 2015
The boards of directors at two of Iowa’s leading farmer-owned cooperatives yesterday signed a letter of intent to study the Read More
CropLife 100Southern States Coop Hosting Drone Flight This Friday
August 3, 2015
Southern States Cooperative — No. 9 on the CropLife 100 — is hosting an FAA-approved drone demonstration at Grandview Farms Read More
CropLife 100Aligned Ag Distributors Adds Four New Owners
July 30, 2015
Aligned Ag Distributors LLC has announced the addition of four new customer/owners to Franklin Holding Co. LLC. They are: The Read More
CropLife 100Pinnacle Purchases California-Based Specialty Crops Retailer
July 20, 2015
Pinnacle Agriculture Holdings has successfully acquired California-based NH3 Service Co.  Operating as part of Pinnacle’s Performance Agriculture brand, the new locations Read More
Asmus Farm Supply liquid fertilizer facility features 20,000 square feet
CropLife 100Slideshow: Asmus Farm Supply Shows Off Its New Liquid Fertilizer Facility
July 15, 2015
Asmus Farm Supply, Rake, IA, recently added a new liquid fertilizer facility to its company operations. The new liquid fertilizer Read More
Latest News
StewardshipOgallala Aquifer At Risk
September 4, 2015
The Ogallala Aquifer, with total water storage capacity about equal to that of Lake Huron in the Midwest, is the Read More
Valley Irrigation variable rate irrigation
StewardshipNebraska Getting Water Conservation Right
September 4, 2015
A precipitation map of Nebraska looks startlingly like a rainbow, with each colored band marking a different level of rainfall. Read More
Crop InputsBayer CropScience: A Decade Of Innovation
September 3, 2015
BLAMS! It’s not a sound effect from the pages of a Superhero comic book. Instead this nifty acronym is used Read More
ManagementReviewing MAGIE 2015
September 2, 2015
CropLife Editor Eric Sfiligoj talks what he saw at the recent Midwest AG Industries Exposition (MAGIE) show. Read More
Melissa Olds Dow AgroSciences
Crop InputsDow AgroSciences: Highlighting The Past, Present & …
September 2, 2015
In general, media events held by large agricultural suppliers tend to focus primarily on what plans the company has in Read More
Mobile tablet
OpinionTaking Data Head On
September 2, 2015
As you read this column, I’m hoping that if you picked up the phone and gave me a call, you’d Read More
Young soybean field
Industry NewsArysta LifeScience Announces New Business Unit Head For…
September 1, 2015
Arysta LifeScience North America announces the addition of Rico Christensen, Business Unit Head, North America. Christensen will have responsibility for Read More
Wilbur Ellis Pink Soybean Seed Treatment
Crop InputsWilbur-Ellis Goes Pink With Soybean Seed Treatments For…
September 1, 2015
This past year, proceeds of pink-dyed soybeans treated and sold to Wilbur-Ellis seed customers in Chester, SD, went to two Read More
SprayersNORAC Active Wing Roll Slated For More Sprayers
September 1, 2015
NORAC Systems, a member of the Topcon Positioning Group, announces the release of Active Wing Roll for RoGator, Apache, New Read More
Syngenta Sign
FungicidesSyngenta’s Newest Fungicide Receives EPA Approval
September 1, 2015
Syngenta announced today that its newest succinate dehydrogenase inhibitor (SDHI) fungicide – Solatenol – has received registration from EPA and Read More
Flooded corn in Indiana
Crop InputsDelaying The Fertilizer Decision
September 1, 2015
Comments gathered from several retailers recently evidenced a classic good-news-bad-news scenario. Good news is prices and supplies of nitrogen, phosphate, Read More
StewardshipBee Buffer Strip Initiative Seeks 100 Ohio Farmers
August 31, 2015
The U.S. Bee Buffer Project, an initiative of the Pollinator Partnership (P2), Burt’s Bees and The Burt’s Bees Greater Good Read More
2015 ShowStopper Award, MAGIE
EquipmentA ShowStopper From Case IH: The Patriot 2250
August 31, 2015
For nine years now, visitors to the yearly Midwest AG Industries Exposition (MAGIE) show have been tasked with not only Read More
Crop InputsMonsanto, FMC Expand Roundup Ready PLUS Platform
August 31, 2015
FMC Corp. and Monsanto Co. announced today an expanded agreement to continue their participation in the Roundup Ready PLUS Crop Read More
Deere Nutrient Applicator
Eric SfiligojThe Good & Bad News From MAGIE
August 31, 2015
As I write this column, I’ve just returned from the annual Midwest AG Industries (MAGIE) trade show in Bloomington, IL. Read More
CPS Morenci receiving its 4R certification
StewardshipCPS Morenci Becomes First Michigan Facility Certified I…
August 31, 2015
The 4R Nutrient Stewardship Certification Program has announced that Crop Production Services, Inc.’s facility located in Morenci, MI, has been Read More
EquipmentDeere Announces Soucy Track Distribution Alliance
August 28, 2015
John Deere announces an alliance with Soucy Track to sell and distribute products through the John Deere dealer channel. “This Read More
FertilizerFall-Applied Phosphorus: A Rooted Investment
August 28, 2015
As commodity prices decrease and input prices continue to rise, farmers are seeking more efficient strategies for meeting a high Read More