Master of Agribusiness / Department of Agricultural Economics / Brian C. Briggeman / Grain Elevators have towered the plains of Southwest Kansas for over the last half
of a century. Many of these large white concrete structures were built during the 1950s
using a slip form concrete design. While new grain storage has been built over time,
many of the original slip form structures remain a large part of the farm cooperatives
storage capacity. Grain production has continued to increase and put greater demand on
storage facilities and handling capabilities. Thus, there is a need for cooperatives to meet
the future demands of farmers by replacing or updating grain storage assets.
The objective of this project is to provide a comparative analysis of grain storage
options that a cooperative, primarily the Garden City Co-op, Inc. (GCC), could utilize in
making a decision to update or replace grain storage assets. The project examines three
different options for grain storage including concrete, steel, and bunker storage. The
project will also examine extending the life of an original slip form elevator by installing a
gunite bin liner. To determine which option that provides the most economic benefit to
GCC and its members, Net Present Value and the Internal Rate of Return are estimated for
each grain storage option.
GCC historical grain handling margins and grain storage costs were derived from
historical averages and bids from projects GCC has undertaken in the past five years,
respectively. The model assumes receipts as a percentage of storage to accurately
represent bushels handled by a facility. Grain storage is highly variable in initial cost and
the operational needs will change in every circumstance. The results indicate that a large
volume of grain is needed before economic profits will be realized.
| Identifer | oai:union.ndltd.org:KSU/oai:krex.k-state.edu:2097/35752 |
| Date | January 1900 |
| Creators | Wagner, Christopher |
| Publisher | Kansas State University |
| Source Sets | K-State Research Exchange |
| Language | en_US |
| Detected Language | English |
| Type | Thesis |
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