Financial Analysis of On-Farm Grain Drying

Clyde Kiker and Mark Lieblich

Journal of Agricultural and Applied Economics, 1986, vol. 18, issue 2, 73-84

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.

Date: 1986
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