Costs of Storing and Handling Cotton at Public Storage Facilities, 1964-65

Excerpts from the report Highlights: Accounting data and operational information relative to 1964-65 were collected from 133 public cotton storage facilities. These participating plants were selected randomly to represent principal areas and types of facility. The sample included 73 interior or port compresses and 60 warehouses. The total capacity of sample plants was about 30 percent of that of all plants approved for storing cotton loaned or owned by the Commodity Credit Corporation (CCC). Two types of costs were developed for each of the principal services performed by each participating plant: (1) Average total cost which includes the expenditures of firms on an accrual basis, plus standardized allowances for depreciation and interest on capital based on original acquisition cost; and (2) average out-of-pocket cost which excludes allowances for depreciation and interest on investment. Also shown for each area are estimates of (1) long-run competitive rates, based on the total replacement cost including depreciation and interest on capital for marginal firms operating at 85 percent of capacity; and (2) short-run competitive rates, based on the out-of-pocket cost of marginal firms