Grain banks can be used to store grain within a community, that can be available to people at fair prices during times of shortage.
- Usually grain prices are very low just after the harvest period, when most people have plenty of grain. Later in the year, grain prices may rise sharply. When people need to buy grain as their own supplies run out, prices are often very high.
- Grain banks can buy grain when prices are low around harvest time and sell it at a fair price when it is in short supply.
- In times of drought or famine, community grain banks can prevent traders exploiting a difficult situation and provide a fairer way of organising food supplies.