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Financial Analysis of On-Farm Grain Drying

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  • Kiker, Clyde
  • Lieblich, Mark

Abstract

Artificial drying of corn in the Southeastern Coastal Plain was shown to be financially feasible for average annual per farm production levels of greater than 10,000 bushels. Net present values for four types of drying systems were evaluated using simulation modeling in which weather conditions, yield levels, and prices were entered as stochastic variables. Scale of production and irrigation substantially influenced crop drying potential. Stochastic efficiency analysis was used to evaluate the riskiness of the investment.

Suggested Citation

  • Kiker, Clyde & Lieblich, Mark, 1986. "Financial Analysis of On-Farm Grain Drying," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 18(2), pages 73-84, December.
    • Handle: RePEc:cup:jagaec:v:18:y:1986:i:02:p:73-84_00
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    Cited by:

    1. Loyns, R.M.A. & Hope, L.E. & Frank, N. Dean, 1990. "Economics Of Natural Air Drying On Manitoba Grain Farms," Research Bulletins 124298, University of Manitoba, Department of Agribusiness and Agricultural Economics.
    2. Davis, Todd D. & Patrick, George F., 1999. "Do Producer Risk Attitudes Effect The Sizing Of On-Farm Harvest, Drying, And Storage Systems?," 1999 Annual meeting, August 8-11, Nashville, TN 21640, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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