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Statistical Cost Analysis of the Existing North Dakota Country Elevator Industry


  • Chase, Craig A.
  • Helgeson, Delmer L.
  • Shaffer, Terry L.


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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  • Chase, Craig A. & Helgeson, Delmer L. & Shaffer, Terry L., 1983. "Statistical Cost Analysis of the Existing North Dakota Country Elevator Industry," Agricultural Economics Reports 23474, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaer:23474

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    References listed on IDEAS

    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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    Cited by:

    1. McVey, Marty Jay, 1996. "Valuing quality differentiated grains from a total logistics perspective," ISU General Staff Papers 1996010108000012326, Iowa State University, Department of Economics.

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