Costs of Storing Reserve Stocks of Wheat at Country Elevators and on Farms in Kansas

Excerpts from the report: This study was undertaken to make available a summary of costs incurred in storing reserve stocks of wheat in several types and sizes of storage units, and to determine the economic effects of holding stocks at various positions in production areas. Its primary purpose was to aid in making decisions regarding the handling of reserve stocks over extended storage periods, taking into consideration the possibility that additional storage space may need to be built to care for large stocks of wheat. At the time the study began, the quantity of wheat owned by the Government in connection with the price-support program was not large enough to require extensive bin-site storage. For this reason records were not available on costs of storing wheat at bin sites. This report, therefore, provides information regarding costs, and factors which affect those costs, for wheat stored at two positions--country elevators and farms. Only costs of storing wheat in buildings of recent construction located in important wheat-producing areas were considered relevant to the purpose of the study.