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Investment decisions for country elevators


  • Wesley W. Wilson

    (Agricultural Economics at Washington State University)

  • Frank J. Dooley

    (Upper Great Plains Transportation Institute, North Dakota State University)


Trainload shipments of grain by elevators substantially reduce their transportation costs. However, many elevators must make investments upgrading their plant before they can ship in trainload movements. In this article, a logit model is developed which considers the investment decision for particular elevators in terms of the physical characteristics of the facility and firm attributes. The results suggest there are considerable differences across elevators in the likelihood of being targeted for investment and shipping grain in trainload movements.

Suggested Citation

  • Wesley W. Wilson & Frank J. Dooley, 1989. "Investment decisions for country elevators," Agribusiness, John Wiley & Sons, Ltd., vol. 5(5), pages 449-464.
  • Handle: RePEc:wly:agribz:v:5:y:1989:i:5:p:449-464
    DOI: 10.1002/1520-6297(198909)5:5<449::AID-AGR2720050504>3.0.CO;2-B

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    References listed on IDEAS

    1. Cobia, David W. & Wilson, William W. & Gunn, Steven P. & Coon, Randal C., 1986. "Pricing Systems of Trainloading Country Elevator Cooperatives," Agricultural Economics Reports 23182, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. 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.
    3. Donald A. Hilger & Bruce A. McCarl & J. William Uhrig, 1977. "Facilities Location: The Case of Grain Subterminals," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(4), pages 674-682.
    4. F. Larry Martin & D. Grant Devine & Surendra N. Kulshreshtha, 1978. "Centralized Prairie Grain Collection: Savings Related To Market Efficiency," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 26(2), pages 18-34, July.
    5. Stephen Fuller & Kerry Litzenberg & Larry Makus & Hector Viscencio, 1986. "Upgrading grain elevators to facilitate multicar rail shipments," Agribusiness, John Wiley & Sons, Ltd., vol. 2(2), pages 247-263.
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