IDEAS home Printed from https://ideas.repec.org/p/ags/saea14/162542.html
   My bibliography  Save this paper

Analyzing Replacement and Expansion of Grain Storage in Oklahoma

Author

Listed:
  • Basnet, Arjun
  • Kenkel, Philip L.

Abstract

A mixed integer programming model was developed using General Algebraic Modeling System (GAMS) to forecasts grain facility replacement in Oklahoma. The results indicated regionalization in grain storage with fewer but larger capacity structures. The results of sequential replacement overtime indicated that there would be some abandonment of facilities and some shift to larger capacity structures. Producer’s transportation cost did not increase with sequential replacement as expected because storage were added in places to the current deficits. The results were not sensitive to crop production, fuel and construction cost and amortization factors. Cost comparison per bushel between configuration after sequential replacement and unrestricted replacement show that transportation cost was $0.04 lower in sequential replacement but total cost was $0.02 higher than unrestricted replacement. The findings of the study are important to grain firms and producers considering replacement of obsolete facilities.

Suggested Citation

  • Basnet, Arjun & Kenkel, Philip L., 2014. "Analyzing Replacement and Expansion of Grain Storage in Oklahoma," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162542, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea14:162542
    DOI: 10.22004/ag.econ.162542
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/162542/files/Grain%20Elevator%20-%20SAEA%202014%20_Basnet%20and%20Kenkel_.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.162542?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cesar D. B. Monterosso & Charles L. Wright & Maria Ceclília S. Lacerda & Noboru Ofugi, 1985. "Grain Storage in Developing Areas: Location and Size of Facilities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(1), pages 101-111.
    2. Tembo, Gelson & Holcomb, Rodney B. & Kenkel, Philip L. & Tilley, Daniel S., 1999. "Using Mixed-Integer Programming To Determine The Potential For Flour-Milling Industry Expansion," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(3), pages 1-10, November.
    3. Fuller, Stephen W. & Sorenson, L. Orlo & Johnson, Marc A. & Oehrtman, Robert L., 1981. "Alternative Wheat Collection And Transportation Systems For The Southern U.S. Plains," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 6(1), pages 1-12, July.
    4. Warman, Marc, 1994. "Cooperative Grain Marketing: Changes, Issues, Alternatives," Research Reports 279979, United States Department of Agriculture, Rural Development.
    5. George W. Ladd & Dennis R. Lifferth, 1975. "An Analysis of Alternative Grain Distribution Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(3), pages 420-430.
    6. Ahmed A. Araji & Richard G. Walsh, 1969. "Effect Of Assembly Costs On Optimum Grain Elevator Size And Location," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 17(2), pages 36-45, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Briggeman, Brian & Jacobs, Keri & Kenkel, Phil & McKee, Greg, 2016. "Current Trends in Cooperative Finance," ISU General Staff Papers 3560, Iowa State University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M T Lucas & D Chhajed, 2004. "Applications of location analysis in agriculture: a survey," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(6), pages 561-578, June.
    2. Wesley W. Wilson & Frank J. Dooley, 1989. "Investment decisions for country elevators," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 449-464.
    3. Berglund, Mary & Anderson, Dale G., 1977. "Impact of Branch-Line Rail Abandonment on Costs and Structure of Fertilizer Distribution," Transportation Research Forum Proceedings 1970s 318653, Transportation Research Forum.
    4. Brennan, Donna C., 1995. "Economic Issues in Farm-to-Port Grain Storage, Handling and Transport," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 63(01), pages 1-11, April.
    5. Steams, Larry & Cobia, David W. & Warman, Marc, 1997. "Response of Cooperative Elevators to Changes in Government Policies," Research Reports 279999, United States Department of Agriculture, Rural Development.
    6. Fuller, Stephen & Sorenson, Orlo & Johnson, Marc & Oehrtman, Robert, 1980. "Alternative Export Wheat Distribution Systems For The Southern U. S. Plains," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278481, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Mendez, David F. & Hughes, David W. & Yu, T. Edward & Griffith, Andrew P., 2017. "Determining the Location of a Tennessee Milk Condensing Plant," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252841, Southern Agricultural Economics Association.
    8. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1978. "Network Flow Models: Use In Rural Freight Transportation Analysis And A Comparison With Linear Programming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-6, December.
    9. Ladd, George W., 1983. "Value Judgements And Efficiency In Publicly Supported Research," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 15(1), pages 1-7, July.
    10. Gloy, Angela & Dooley, Frank J., 2003. "The Effect of Identity Preserved Premiums on Elevator Grain Flows," 2003 Annual meeting, July 27-30, Montreal, Canada 21955, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Unknown, 1989. "Bulk Handling of Paddy and Rice in Malaysia: an Economic Analysis," Technical Reports 113876, Australian Centre for International Agricultural Research.
    12. Noel, Jay E. & Ahern, James & Schaffner, David J. & Johnson, Jill & Muelrath, Kristina & Schroeder, Kyle, 2002. "The Economic Feasibility of Forming a California Wheat Growers’ Cooperative," Research Reports 143136, University of California, Davis, Center for Cooperatives.
    13. Johnson, Marc A., 1981. "Current And Developing Issues In Interregional Competition And Agricultural Transportation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 13(1), pages 1-10, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea14:162542. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.