Case Study
The Feasibility of Investing in a High-Speed Grain-Handling Facility in Kansas
Pedro Masi and Keith Harris
Kansas State University
JEL Codes: Q13, Q14
Keywords: Shuttle loader, grain-handling facility, investment, rural development, agricultural finance
Publish Date: March 30, 2021
Volume 3, Issue 1
View Full Article (PDF) | Request Teaching Notes/Supplemental Materials
Abstract
Rural communities often combine quantitative and qualitative approaches to determine which investments can be supported by the local economy. In this case study, the goal of an economic development council (EDC) in rural Kansas was to promote economic and population growth by making the best use of the local resources. From a list of potential investment projects, the EDC identified a high-speed grain-handling installation as an opportunity to facilitate local economic growth. A community leader then had to determine whether an investment in such a facility was financially feasible for the community. This case study emphasizes the applied financial analysis methods used to make investment decisions about rural projects. It presumes a variable mix of historical grain prices and local grain production to project the most likely profit outcome. Thus, it helps inform investment decision of the EDC and county commissioners.
References
Briggeman, B., K. Jackson, and L. Bilberry. 2016. “Monitoring the evolving Kansas Cooperative Landscape: mapping grain locations in Kansas. Dept. Agr. Econ., Arthur Capper Cooperative Center, Kansas State University.
Bekkerman, A., and M. Taylor. 2017. “Influence of shuttle loaders on grain markets in Kansas and Montana.” Dept. Agr. Econ., Arthur Capper Cooperative Center, Kansas State University.
Kansas Department of Agriculture (KDA). 2017. “Stafford County. Estimated economic impact of agriculture, food, and food processing sectors.”
Kowalski, D. 2014. “Shuttle loaders approaching the saturation point.” CoBank Knowledge Exchange.
Ndembe, E., and J. Bitzan. 2018. “Grain freight elevator consolidation, transportation demand, and the growth of shuttle facilities.” Research in Transportation Economics 71: 54–60.
Saskatchewan Assessment Management Agency (SAMA). 2015. “SAMA's 2015 Cost Guide.”
U.S. Department of Agriculture (USDA), Agricultural Marketing Service. 2013. “The Effects of Increased Shuttle-Train Movements of Grain and Oilseeds.”
U.S. Department of Agriculture (USDA), Agricultural Marketing Service. 2015. “Grain Transportation Report .” 2015.
Articles in this issue
Impact of COVID-19—Related Transition to Online Instruction on Student Achievement
Jason J. Holderieath, Michael K. Crosby, T. Eric McConnell, and D. Paul Jackson
Course-Related Student Anxiety During COVID-19: A Problem and Some Solutions
Roger Brown, Steve Buck, Michelle Kibler, Jerrod Penn, and Na Zuo
Teaching Principles of Microeconomics with the Economics Media Library
Kelsi Hobbs and Jadrian Wooten
Obtaining Extension Stakeholder Input to Influence Extension Education Programming and Staffing Needs
Caitlinn B. Lineback, Melissa G.S. McKendree, Jeannine P. Schweihofer, and Daniel D. Buskirk
The Feasibility of Investing in a High-Speed Grain-Handling Facility in Kansas
Pedro Masi and Keith Harris