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A financial analysis of placing fixed grain assets in northern Kansas

Master of Agribusiness / Department of Agricultural Economics / Christine Wilson / During the past two decades, there has been major consolidation in the grain
handling industry. Staying competitive in today’s environment involves finding
projects that add value from a strategic geographic standpoint and a revenue
generation standpoint. This study examines several economic factors regarding
growth opportunities of facility assets that exist in Northern Kansas, and what the
associated cost structure would look like based on a business feasibility study.
This study researched the county production by volume and acreage
devoted to crop production as well as bid structures and freight spreads of
competitors currently in the region today. It also involved researching the margin
structures, and it considered a strategic decision about the size of facility that could
be built on the existing margin opportunity. Several economic theories were used to
derive the feasibility of this research and measure the profitability of the project.
Farmer sentiment was polled and a focus group was assembled to understand the
opportunity that Scoular may have in the region.
The results found a region that provides a steady volume of crop production
and margins that are typical of those that Scoular is experiencing in other regions of
the state. The research also found the farmers of this geography, receptive to more
competition entering the market place.

Identiferoai:union.ndltd.org:KSU/oai:krex.k-state.edu:2097/18146
Date January 1900
CreatorsPost, Seth
PublisherKansas State University
Source SetsK-State Research Exchange
Languageen_US
Detected LanguageEnglish
TypeThesis

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