In previous years, we dried our onions by tying them up in the barn. While this method was mostly effective, we got quite a few that spoiled while drying and ended up mushy.
The first photo shows the original method.
This year we tried a new method. After suspending a wire shelf from the rafters of the barn, I place the onions on the shelf after cutting the tops off flush. Since they begin dripping almost immediately, they have to placed with the cut-off top facing down, so the drippings don't run all over the onion. See the picture below that shows the onions dripping from the new shelf (click to view it full size).
Here is a sample of the payoff. Beautiful onions, dried and ready for storage, with no softies. The only downside, is if you walk under the shelf for the first few days, you might need an umbrella!