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Financial Analysis of On-Farm Grain Drying

Published online by Cambridge University Press:  05 September 2016

Clyde Kiker  and
Mark Lieblich
Clyde Kiker
Affiliation:
Food and Resource Economics, University of Florida
Mark Lieblich
Affiliation:
Agricultural Cooperative Development International, Washington, D. C.
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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.

Keywords

crop dryingrisksimulationfinancial analysis
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 2 , December 1986 , pp. 73 - 84
Copyright
Copyright © Southern Agricultural Economics Association 1986

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