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Statistical Cost Analysis of the Existing North Dakota Country Elevator Industry

Listed author(s):
  • Chase, Craig A.
  • Helgeson, Delmer L.
  • Shaffer, Terry L.
Registered author(s):

    The grain elevator industry is an essential and integrated part of the marketing system in North Dakota. A more efficient marketing system can benefit society either in the form of increasing producer income through higher grain prices, reducing consumer expenditures through lower retail prices, or both. The grain marketing system also is currently moving through a period of change brought on by a larger supply of grain, proposed branch line abandonment and deregulated rail rates. The purpose of this study was to analyze the cost characteristics of the elevator industry and determine the relative efficiency and existence of economies of size during the 1978-79 period. A statistical costing method was used to empirically analyze the cost structure of the country elevator system as it existed during that period. Few elevators were found to be operating near the minimum average cost. Decreasing average total costs were apparent within the elevator industry indicating the existence of economies of size. Upper Great Plains Transportation Institute Report No.43

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    Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agricultural Economics Reports with number 23474.

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    Date of creation: 1983
    Handle: RePEc:ags:nddaer:23474
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    1. R. G. Bressler, 1945. "Research Determination of Economies of Scale," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 27(3), pages 526-539.
    2. Hemphill, Perry V. & Anderson, Floyd G., 1966. "An Analysis of North Dakota Cooperative Grain Elevators," Agribusiness & Applied Economics Report 104185, North Dakota State University, Department of Agribusiness and Applied Economics.
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