Estimated Cost of Storing and Handling Grain in Commercial Elevators, 1971-72

This report develops estimated handling and storage costs associated with operating commercial grain elevators in 1971-72. Cost estimates were based on projections of grain production, disappearance, and price levels since the base year, 1967-68. The 1971-72 projected average cost of 16.9 cents for storing a bushel of grain for 1 year is 20 percent above similar 1967-68 costs. A 10-percent increase in volume would lower the 1971-72 projected cost to 15.7 cents. A 10-percent reduction in volume would raise the 1971-72 projection to 18.4 cents. The longrun competitive storage rate, which provides the cost of replacing facilities at 1971-72 price levels, is estimated at 12 cents per bushel or 33 percent higher than the comparable cost in 1967-68. A combination of storage and handling costs particular to the type of facility is 22.5 cents, 24.3 cents, and 19.3 cents per bushel at country, inland terminals, and port terminals, respectively.