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The Changing Competitive Structure of Kansas Grain Handling and Transportation Industry Daniel M O’Brien, Kansas State University, dobrien@ksu.edu Brian C Briggeman, Kansas State University, bbrigg@k-state.edu Selected Paper prepared for presentation at the 2016 Agricultural & Applied Economics Association Annual Meeting, Boston Massachusetts, July 31-August Copyright 2016 by Daniel M O’Brien and Brian C Briggeman, Kansas State University All rights reserved Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that the copyright notice appears on all such copies The Changing Competitive Structure of Kansas Grain Handling and Transportation Industry Selected Paper prepared for presentation at the 2016 Agricultural & Applied Economics Association Annual Meeting, Boston Massachusetts, July 31-August Daniel M O’Brien and Brian C Briggeman Kansas State University Department of Agricultural Economics Situation Statement The Kansas grain storage, handling and transportation industry has undergone considerable change in recent years in terms of physical storage and handling capacity, competitive organization of participants, and access to large scale rail transportation Ongoing consolidation of local and regional cooperatives has occurred as have strategic investments in high-volume rail transportation facilities by both cooperatives and independent agribusinesses While the structure of the Kansas grain industry has been in a period of dynamic change over the last decade, the reasons are varied and somewhat interdependent Periods of severe drought in western Kansas, establishment of ethanol processing plants in different parts of the state, the ongoing competitive presence of the Kansas cattle feeding industry and recent growth in dairy industries, the construction of 100 railcar-plus shuttle train grain handling facilities in strategic locations in the state (to ensure competitive rail access by local / regional grain elevators), and other changes have all occurred on a large scale since years 2007-2008 Purpose In this project changes in the competitive structure of the Kansas grain storage, handling, and transportation industry at the local level between the 2007-2008 (reported in July 2008) and 2014-2015 (reported in August 2015) are examined – along with changes in factors that are hypothesized to have influenced these changes in Kansas grain industry structure In addition, trends over time in Kansas grain production relative to both commercial (off-farm) and on-farm grain storage over the 1969-2015 period will be examined and compared to the 2007-2008 and 2014-2015 Kansas grain industry storage data The purpose of this research is to provide Kansas grain industry agribusinesses and policy makers with descriptive data and an improved understanding of the broader, aggregate trends that have occurred in this dynamically competitive industry in recent years – along with an idea of what factors may have caused such structural adjustments to occur Also, the Kansas State University specialists and specialists in surrounding states will gain a better understanding of the competitive structure of the Kansas grain industry and the factors underlying and/or causing industry change to occur The focus of data analysis in this project is on quantifying and explaining the reason why differences may exist in the structure of the Kansas grain handling and transportation industry between the earlier 2007-2008 period and the later 2014-2015 time-frame The analysis focuses on changes in Kansas rail capacity access, trends in business location consolidation and ownership-type by region of the state, the locational proximity of grain elevator storage capacity and numbers of competitors to intensity of grain production and livestock feeding, ethanol plants, and wheat mills Personal interviews of grain marketing managers from the Kansas grain industry were performed to add industry-level perspectives about the competitive forces that have brought about changes in the Kansas grain industry over the last decade A complementary focus of this paper is on how trends in Kansas production of corn, sorghum, wheat and soybeans compare to the evolution of both off-farm (commercial) and on-farm storage of these same crops over the 1969-2015 period Of particular interest will be how Kansas production and quarterly stocks data over time coincide with the more comprehensive Kansas grain industry data during the 2007-2008 and 2014-2015 periods Research Method Data on a) county and/or regional location of grain handling and rail transportation facilities, b) grain elevator facility business types (cooperative, independent, or jointly owned in cooperative-independent joint ventures) and multiple-site business associations, c) the amount of grain storage handling capacity per grain elevator site, d) site-by-site railcar access and railcar capacity – including unit/shuttle train handling facilities, e) other key factors such as proximity to grain production areas, ethanol plants, commercial livestock feeders, and wheat mills, and f) quarterly stocks and annual production of Kansas corn, sorghum, wheat and soybeans, are analyzed with the purpose of quantifying changes that have occurred over the 1969-2015 time period, with a particular focus on the 2007-2008 and 2014-2015 periods Sources of data include 1) Kansas Grain and Feed Industry Annual Directories for 2007-2008, and 2014-2015, 2) public information about the competitive structure of the Kansas ethanol industry, 3) United States Department of Agriculture (USDA) county and regional data on grain production and livestock feeding, 4) commercial railroad facility information from the Burlington Northern Sante Fe (BNSF), Union Pacific (UP), and other regional Kansas railroads, 5) personal interviews with Kansas grain industry sources, 6) USDA National Agricultural Statistical Service (NASS) annual production and quarterly stocks information for corn, sorghum, wheat and soybeans, and 7) other sources Information pertaining to grain elevator locations with accompanying descriptive information has been gathered for the 2014-2015 period Earlier analysis for the 2007-2008 period provided both a “head start” and a basis for comparison for the 2014-2015 Kansas grain industry data Results A Changes in Overall Kansas Grain Industry Characteristics The grain storage capacity of the Kansas grain industry increased substantially from 2008 to 2015 – with “flat” or ground level storage increasing at a greater rate than traditional “upright” storage capacity Also, grain elevator access to rail service became more concentrated on large train loading facilities, with an increase in the number of 100+ railcar handling facilities at the same time that railcar access to smaller country grain elevators declined at least moderately The number of grain elevators in Kansas declined modestly (down 1.15%) from 695 in 2008 to 687 in 2015, with cooperative elevators unchanged at 484, independent grain elevators down to 198, and joint ventures down to (Table 1) Total grain elevator storage capacity in Kansas increased 8.6% or 78 million bushels (mb) over this period, from 907 mb in 2008 to 985 mb in 2015 Of this increase in total grain storage capacity, upright grain elevator storage capacity increased 35 mb (up 4.5%) to 809 mb, while flat grain elevator storage capacity increased 41 mb (up 30.3%) to 176 mb in 2015 Warehouse grain storage capacity increased 16,300 tons (up 21.1%) to 93,700 tons in 2015 On a per elevator basis, average grain elevator storage capacity increased 126,282 bushels (bu) (up 9.7%) to 1,433,357 bu per elevator from 2008 to 2015, while median grain elevator storage capacity increased 114,500 bu (up 15.8%) to 840,000 bu per elevator from 2008 to 2015 This difference between the average and median grain elevator grain storage capacity figures indicates the presence of small number of large grain elevator facilities in the state of Kansas – with a much larger number of medium-to-small sized facilities also present in the state Figures on Kansas grain elevator railcar handling or loading capacity are consistent with the broader trend toward construction of 100 plus car handling facilities for greater access to railcar transportation of grain that has occurred throughout the United States over the last decade It is possible that some of the grain elevators formerly with 50-99 railcar handling capacity in 2007-2008 increased to the 100+ railcar category in 2014-2015 The number of Kansas grain elevators with railcar access declined by 50 (down 10.9%) to 407 (59% of the total of 687 elevators) from 2008 to 2015 The total railcar handling capacity of Kansas grain elevators declined by 1,158 cars (down 13.0%) to 7,717 railcars from 2008 to 2015 In regards to Kansas grain elevators with higher capacity to handle railcars, the number of grain elevators with 50-99 railcar handling capacity declined by (down to 1.8% of all Kansas grain elevators) to 12 from 2008 to 2015 Conversely, the number of grain elevators with 100 plus railcar handling capacity increased by (up to 4.5% of all Kansas grain elevators) to 31 from 2008 to 2015 The number of wheat and/or grain sorghum processing mills in Kansas has remained at 12 – unchanged over the 2008-2015 period Similarly, the number of soybean processors in the state has remained unchanged at The number of major functioning ethanol plants has remained at throughout this period – although older plants closing and newer plants opening Total average Kansas production of corn, grain sorghum, and wheat during the 2004-2008 period was 970.2 million bushels (mb) annually, which was 107.0% of the estimated amount of commercial grain storage in the state in 2008 (i.e., 907 mb) Off-farm or non-commercial grain storage would be in addition to this figure This compares to total average Kansas production of corn, grain sorghum, and wheat during the 2011-2015 period of 972.9 mb, which was 98.8% of the estimated amount of commercial grain storage in the state in 2015 (i.e., 985 mb) If soybean production and quarterly stocks are also considered – with soybeans tending to be sold more quickly by Kansas farm producers either at or immediately post-harvest and consequently not to be kept in storage or to occupy storage space in most years – total average annual Kansas production of corn, grain sorghum, wheat and soybeans during the 2004-2008 period was 1,074.5 mb, which was 118.5% of the estimated amount of commercial grain Table Kansas Grain Industry Characteristics – 2008 & 2015 July 2008 August 2015 Change A All Kansas Grain Elevators All Grain Elevators (#) 695 687 -8 All Grain Elevator Storage Capacity (million bu) 907 mb 985 mb +78 Upright Elevator Storage Capacity (million bu) 774 mb 809 mb +35 Flat Elevator Storage Capacity (million bu) 135 mb 176 mb +41 77.4 k-tons 93.7 k-tons +16.3 Average Grain Elevator Storage Capacity (bushels) 1,307,075 bu 1,433,357 bu +126,282 bu Median Grain Elevator Storage Capacity (bushels) 725,500 bu 840,000 bu +114,500 bu 457 (66%) 407 (59%) -50 (-7%) 233 (34%) 280 (41%) +47 (+7%) 8,875 7,717 -1,158 50-99 rail car handling capacity (# elevators (%)) 16 (2.3%) 12 (1.8%) -4 (-0.5%) 100+ rail car handling capacity (# elevators (%)) 25 (3.6%) 31 (4.5%) +6 (+0.9%) Cooperative Grain Elevators (#) 484 484 Independent Grain Elevators (#) 205 198 -7 -1 12 12 Soybean Processors (#) 2 Major Ethanol Plants Functioning In-state (#) 8 Kansas Average Major Grain Production (Corn, Grain Sorghum, Wheat) (2004-08 & 2011-15) (mln bu) Kansas Average Major Grain Production (Cn/GS/Wht) / Total Storage (%) 970.2 mb 972.9 mb +2.7 mb 107.0% 98.8% -8.2% Kansas Average Major Grain Production (Corn, Grain Sorghum, Wheat, Soybeans) (2004-08 & 2011-15) (mln bu) Kansas Average Major Grain Production (Cn/GS/Wht/Sb) / Total Storage (%) 1,074.5 mb 1,095.1 mb +20.6 mb 118.5% 111.2% -8.9% - - 1,332.3 mb - - 135.3% Warehouse Capacity (1,000 tons) Railroad Access (# (%)) No Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) Joint Ventures (Coop + Independent) (#) * Wheat/Grain Processing Mills (#) 2015 Estimate 2015 Kansas Major Grain Production (Corn, Grain Sorghum, Wheat, Soybeans) (mln bu) 2015 Kansas Average Major Grain Production (Cn/GS/Wht/Sb) / Total Storage (%) storage in the state in 2008 (i.e., 907.1 mb) Off-farm or non-commercial grain storage would be in addition to this figure This compares to total average annual Kansas production of corn, grain sorghum, wheat and soybeans during the 2011-2015 period of 1,095.1 mb, which was 111.2% of the estimated amount of commercial grain storage in the state in 2015 (i.e., 985 mb) During 2015, total Kansas corn, grain sorghum, wheat and soybean production is estimated to be 1,332.8 mb, which is 135.3% of 2015 total commercial grain storage capacity in Kansas – q sharp increase in the size of Kansas crop production relative to available off-farm (commercial) grain storage compared to recent years B Changes in Kansas Cooperative Grain Elevators Table 2a shows that although the number of cooperative grain elevators in Kansas was nearly unchanged from 2008 (485) to 2015 (484), the grain storage capacity of Kansas cooperatives as a group increased from 2008 to 2015 (up 104 mb from 432 mb in 2008 to 536 mb in 2015) – with more of the increase being in upright storage (up 76 mb from 393 mb to 469 mb) than in flat grain storage facilities (up 28 mb from 39 mb to 67 mb) The average (median) grain storage capacity of Kansas cooperative elevators increased from 894,265 bu (median = 720,000 bu) in 2008 to 1,106,955 bu (median = 828,500 bu) The number of Kansas cooperative grain elevators with railcar access decreased from 314 in 2008 to 291 in 2015, while the total amount of railcar capacity for cooperatives decreased by 894 cars (down 19.3%) from 4,622 railcars in 2008 to 3,728 railcars in 2015 Kansas cooperative grain elevators with 50-99 railcar handling capacity declined by from in 2008 to in 2015, but the number with 100+ railcar capacity increased by from in 2008 to 10 in 2015 C Changes in Kansas Independent Grain Elevators Table 2a also shows that the number of independent grain elevators in Kansas declined from 2008 (205) to 2015 (198) The grain storage capacity of Kansas independent elevators also decreased from 2008 to 2015 (down 45 mb from 465 mb in 2008 to 420 mb in 2015) – with a sizable decrease in upright grain storage (down 51 mb from 372 mb to 321 mb), but an increase in flat grain storage facilities (up mb from 94 mb to 99 mb) The average grain storage capacity of Kansas independent elevators decreased from 2,267,185 bu in 2008 to 2,111,503 bu, while conversely, the median storage capacity of Kansas independent elevators increased from 764,000 bu in 2008 to 844,000 bu in 2015 The number of Kansas independent grain elevators with railcar access decreased from 139 in 2008 to 112 in 2015, while the total amount of railcar capacity for independents decreased by 361 cars (down 9.2%) from 3,918 railcars in 2008 to 3,557 railcars in 2015 Kansas cooperative grain elevators with 50-99 railcar handling capacity declined by from 11 in 2008 to 10 in 2015, but the number with 100+ railcar capacity increased by from 15 in 2008 to 17 in 2015 Table 2a Kansas Cooperative and Independent Grain Elevator Characteristics – 2008 & 2015 July 2008 August 2015 Change A Cooperative Grain Elevators in Kansas All Grain Elevators (#) 485 484 -1 All Grain Elevator Storage Capacity (million bu) 432 mb 536 mb +104 Upright Elevator Storage Capacity (million bu) 393 mb 469 mb +76 39 mb 67 mb +28 Warehouse Capacity (1,000 tons) 63.7 k-tons 67.0 k-tons +3.3 Average Grain Elevator Storage Capacity (bushels) 894,265 bu 1,106,955 bu +212,690 bu Median Grain Elevator Storage Capacity (bushels) 720,000 bu 828,500 bu +108,500 bu 314 (65%) 291 (60%) -25 (-5%) 168 (35%) 193 (40%) +25 (+5%) 4,622 3,728 -894 50-99 rail car handling capacity (# elevators (%)) (1.1%) (0.4%) -3 (-0.7) 100+ rail car handling capacity (# elevators (%)) (1.4%) 10 (2.1%) +3 (+0.7%) 205 198 -7 All Grain Elevator Storage Capacity (million bu) 465 mb 420 mb -45 Upright Elevator Storage Capacity (million bu) 372 mb 321 mb -51 94 mb 99 mb +5 13.8 k-tons 26.7 k-tons +12.9 Average Grain Elevator Storage Capacity (bushels) 2,267,185 bu 2,111,503 bu -155,682 bu Median Grain Elevator Storage Capacity (bushels) 764,000 bu 844,000 bu +80,000 bu 139 (68%) 112 (56%) -27 (-12%) 65 (32%) 87 (44%) +22 (+12%) 3,918 3,557 -361 50-99 rail car handling capacity (# elevators (%)) 11 (5.3%) 10 (5.1%) -1 (-0.2%) 100+ rail car handling capacity (# elevators (%)) 15 (7.3%) 17 (8.5%) +2 (+1.2%) Flat Elevator Storage Capacity (million bu) Railroad Access (# (%)) No Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) B Independent Grain Elevators in Kansas All Grain Elevators (#) Flat Elevator Storage Capacity (million bu) Warehouse Capacity (1,000 tons) Railroad Access (# (%)) No Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) C Changes in Kansas Joint Venture Grain Elevators Table 2b shows that the number of joint venture grain elevators in Kansas declined from 2008 (6) to 2015 (1) However, the grain storage capacity of Kansas joint venture elevators increased sharply from 2008 to 2015 (up 18.4 mb or 277% from 10.4 mb in 2008 to 28.8 mb in 2015) – with a sizable increase in upright grain storage (up 9.9 mbor 208% from 9.2 mb to 19.1 mb), and an increase in flat grain storage facilities (up 8.5 mb or 808% from 1.2 mb to 9.7 mb) The average grain storage capacity of Kansas joint venture elevators increased from 1,734,500 bu in 2008 to 7,190,205 bu, while the median storage capacity of Kansas joint venture elevators increased from 1,340,000 bu in 2008 to 8,070,000 bu in 2015 The number of Kansas joint venture grain elevators with railcar access was unchanged from in 2008 and 2015, while the total amount of railcar capacity for joint venture elevators increased from 335 railcars in 2008 to 432 railcars in 2015 There were no Kansas joint venture grain elevators with 50-99 railcar handling capacity in either 2008 or 2015, but the number with 100+ railcar capacity increased from in 2008 to in 2015 Table 2b Kansas Joint Venture Grain Elevator Characteristics – 2008 & 2015 July 2008 August 2015 Change C Joint Venture Grain Elevators in Kansas All Grain Elevators (#) -1 All Grain Elevator Storage Capacity (million bu) 10.4 mb 28.8 mb +18.4 Upright Elevator Storage Capacity (million bu) 9.2 mb 19.1 mb +9.9 Flat Elevator Storage Capacity (million bu) 1.2 mb 9.7 mb +8.5 k-tons k-tons No change Average Grain Elevator Storage Capacity (bushels) 1,734,500 bu 7,190,205 bu +5,455,705 bu Median Grain Elevator Storage Capacity (bushels) 1,340,000 bu 8,070,000 bu +6,730,000 bu (67%) (80%) No chg (+13%) (33%) (20%) -1 (-13%) 335 432 +97 50-99 rail car handling capacity (# elevators (%)) (0%) (0%) nc (nc %) 100+ rail car handling capacity (# elevators (%)) (50%) (80%) +1 (+30%) Warehouse Capacity (1,000 tons) Railroad Access (# (%)) No Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) D Proximity of Kansas Grain Elevators to Ethanol Plants Table shows the average distance from Kansas grain elevators to major ethanol plants in the state Due to some closings of old ethanol plants as well as the opening of some new ethanol processing facilities, the average and median distances from Kansas grain elevators to ethanol varied from 2008 to 2015 Table Kansas Grain Industry Ethanol Plant & Wheat Mill Proximity, and Local Grain Elevator Competitive Firm Density – 2008 & 2015 July 2008 August 2015 Change A Elevator Distance to Ethanol Plants (Kansas) Average distance to Ethanol Plant (miles) 165.2 177.2 +12.0 150.0 175.0 +25.0 KS Elevators within 105 miles of Ethanol Plant (# (%)) 571 (82%) 582 (85%) +11 (+3%) KS Elevators within 55 miles of Ethanol Plant (# (%)) 317 (45%) 333 (48%) +15 (+3%) - 170 - 160 KS Elevators within 105 miles of Wheat Mills (# (%)) - 541 (79%) KS Elevators within 55 miles of Wheat Mills (# (%)) - 282 (41%) - 4.7 # Competitive (non-affiliated) Firms w/in 15 miles - 3.3 % Competitive (non-affiliated) Firms w/in 15 miles - 66.7% - 23.6 # Competitive (non-affiliated) Firms w/in 35 miles - 19.9 % Competitive (non-affiliated) Firms w/in 35 miles - 84.3% Median distance to Ethanol Plant (miles) B Elevator Distance to Wheat Mills (Kansas) Average distance to Wheat Mills (miles) Median distance to Wheat Mills (miles) C Competitive Density of Grain Elevators (Kansas) # Elevators within 15 miles in 2015 (# firms) # Elevators within 35 miles in 2015 (# firms) The average distance from a Kansas grain elevator to an ethanol plant was 165.2 miles in 2008, but increased to 177.2 miles in 2015 Similarly, the median distance from elevator to ethanol plant increased from 150.0 miles in 2008 to 175.0 in 2015 In 2008 a total of 571 of 695 (82%) of Kansas grain elevators were located with 105 miles of an ethanol plant in the state This compares of 582 of 687 (85%) in 2015 However, the proportion of Kansas grain elevators located within 55 miles of a Kansas ethanol plant was less, with 317 of 695 (45%) located within 55 miles in 2008, and 333 (48%) located as such in 2015 E Proximity of Kansas Grain Elevators to Wheat Mills Table also shows the average distance from Kansas grain elevators to major wheat flour processing mills in the state The average distance from a Kansas grain elevator to an in-state wheat mill was 170 miles in 2015, with the median distance being 160 miles In 2015 a total of 541 of 687 (85%) grain elevators were located within 105 miles of a wheat mill, but only 282 of 687 (41%) were located within 55 miles2015 However, the proportion of Kansas grain elevators located within 55 miles of a Kansas ethanol plant was less, with 317 of 695 (45%) located within 55 miles in 2008, and 333 (48%) located as such in 2015 F Competitive Density of Kansas Grain Elevators Table shows the number of Kansas grain elevators located within 15 and 35 miles of each other in 2015 – as well as whether these grain elevators are affiliated with each other (i.e., noncompetitive with one another) or not affiliated and assumed to be potential competitors In 2015 on average there were 4.7 grain elevators located within 15 miles of each other in Kansas, with 3.3 of them being non-affiliated competitors or 66.7% of the grain elevators in that same 15-mile radius Looking at a broader competitive market area, in 2015 there were on average 23.6 grain elevators located within a 35-mile radius of any one Kansas grain elevator, with 19.9 of them being non-affiliated or competitive, i.e., 84.3% of the grain elevators located within that same 35-mile radius G Western Kansas Grain Elevator Industry Characteristics The characteristics of the Kansas grain elevator industry in the western three crop reporting districts of the state – Northwest (CRD 10), West Central (CRD 20), and Southwest (CRD 30) are shown in Table 4a and Table Northwest Kansas (CRD 10): The closure of a major rail line and ongoing concentration of rail service on larger facilities during the 2008-2015 period affected this region Considerable growth in grain elevator storage capacity occurred – most of it concentrated at a small number of grain elevator locations Ethanol plants are located within this area (Campus-Oakley) and near it to the north (Trenton, NE) and east (Phillipsburg) impact grain markets in this region Colby and Goodland are major grain transportation / handling centers in this area In 2008 Northwest Kansas had 32 cooperative grain elevators, 14 independents, and joint ventures, with those figures changing to 35 cooperatives, 12 independents, and joint venture in 2015 (Table 4a) The number of grain elevators declined by from 48 in 2008 to 47 in 2015 Grain elevator storage capacity increased by 29.4 mb (up 51.5%) from 57.1 mb in 2008 to 86.5 mb in 2015, while average grain elevator storage capacity increased by 632,532 bu, from 1,164,531 bu in 2008 to 1,802,063 bu in 2015 The number of grain elevators with railcar access in Northwest Kansas declined dramatically from 36 (77% of all elevators) in 2008 to 21 (44% of all elevators) in 2015, with total railcar capacity declining from 558 railcars in 2008 to 356 railcars in 2015 (Table 4a) Northwest Kansas grain elevators with 50-99 railcar handling capacity declined from in 2008 to in 2015, while the number with 100+ railcar capacity was unchanged from in 2008 to in 2015 In 2008, 31 of 48 (61%) of Northwest Kansas grain elevators were located within 55 miles of an ethanol plant in the state, with 27 of 47 (56%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 2.9 non-affiliated grain elevator competitors within a 15-mile radius in Northwest Kansas, equaling 69% of the elevators located within that 15 mile radius Table 4a Western Kansas Grain Industry Characteristics – Northwest, West Central, & Southwest Kansas – 2008 & 2015 July 2008 August 2015 Change A Northwest Kansas (CRD 10) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) 48 47 -1 57.1 mb 86.5 mb +29.4 1,164,531 bu 1,802,063 bu +637,532 36 (77%) 21 (44%) -15 (-33%) 558 356 -202 (4.1%) (2.1%) -1 (-2.0%) nc (+0.1%) All Railcar Handling Capacity (# railcars) 50-99 rail car handling capacity (# elevators (%)) 100+ rail car handling capacity (# elevators (%)) (2.0%) (2.1%) # Cooperatives / Independents / Joint Ventures C C I JV +3C/-2I/-2JV 53 56 +3 61.3 mb 67.8 mb +6.5 1,095,107 bu 1,149,729 bu +54,622 48 (86%) 46 (78%) -2 (-8%) 990 1,007 -172 50-99 rail car handling capacity (# elevators (%)) (3.6%) (3.4%) nc (-0.2%) 100+ rail car handling capacity (# elevators (%)) (7.1%) (6.8%) nc (-0.3%) # Cooperatives / Independents / Joint Ventures 35C/21I/0JV 40C/19I/0JV +5C/-2I/ncJV 93 90 -3 179.5 mb 218.7 mb +39.2 1,812,970 bu 2,301,705 bu +488,735 78 (79%) 70 (74%) -8 (-5%) 1,687 1,467 -220 50-99 rail car handling capacity (# elevators (%)) (2.1%) (1.1%) -1 (-1.0%) 100+ rail car handling capacity (# elevators (%)) (6.1%) (8.4%) +2 (+2.3%) # Cooperatives / Independents / Joint Ventures 69C/29I/1JV 70C/24I/1JV +1C/-5I/ncJV 32 /14 /3 JV I 35 /12 /1 B West Central Kansas (CRD 20) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) C Southwest Kansas (CRD 30) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) West Central Kansas (CRD 20): The presence of major cattle feeding enterprises and the maintenance of rail services have positively affected this region Ethanol plants located just south of this region (Garden City) and near it to the north (Campus-Oakley, KS) impact grain markets in this region Scott City is a major grain transportation / handling center in this area In 2008, West Central KS had 35 cooperative grain elevators, 21 independents, and joint ventures, with those figures changing to 40 cooperatives, 19 independents, and joint ventures in 2015 (Table 4a) The number of grain elevators increased by from 53 in 2008 to 56 in 2015 Grain elevator storage capacity increased by 6.5 mb (up 10.6%) from 61.3 mb in 2008 to 67.8 mb in 2015, while average grain elevator storage capacity increased by 54,622 bu, from 1,095,107 bu in 2008 to 1,149,729 bu in 2015 The number of grain elevators with railcar access in West Central Kansas declined marginally from 48 (86% of all elevators) in 2008 to 46 (78% of all elevators) in 2015, with total railcar capacity increasing from 990 railcars in 2008 to 1,007 railcars in 2015 (Table 4a) West Central KS grain elevators with 50-99 railcar handling capacity were unchanged from in 2008 to in 2015, while the number with 100+ railcar capacity was unchanged from in 2008 to in 2015 In 2008, of 53 (0%) of West Central Kansas grain elevators were located within 55 miles of an ethanol plant in the state, with 36 of 56 (61%) located within 55 miles in 2015 – reflecting the development of a new ethanol plant in Garden City, Kansas In 2015 on average there were 1.8 non-affiliated grain elevator competitors within a 15-mile radius in West Central KS, equaling 65% of the elevators located within that 15-mile radius Southwest Kansas (CRD 30): Southwest KS is a major production and demand center for feedgrains due to irrigated corn production on the one hand, and major cattle feeding enterprises in the area on the other Rail services have become more concentrated in this region – focusing on larger 100+ railcar facilities Major ethanol plants are located here (Garden City and Liberal), as well as to the north (Campus-Oakley), and east (Pratt and Lyon) Garden City and Dodge City are major grain handling/transportation centers located in this area In 2008 Southwest Kansas had 69 cooperative grain elevators, 29 independents, and joint venture, with those figures changing to 70 cooperatives, 24 independents, and joint venture in 2015 (Table 4a) The number of grain elevators decreased by from 93 in 2008 to 90 in 2015 Grain elevator storage capacity increased by 39.2 mb (up 21.8%) from 179.5 mb in 2008 to 218.7 mb in 2015, while average grain elevator storage capacity increased by 448,735 bu, from 1,812,970 bu in 2008 to 2,301,705 bu in 2015 The number of grain elevators with railcar access in Southwest Kansas declined from 78 (79% of all elevators) in 2008 to 70 (74% of all elevators) in 2015, with total railcar capacity decreasing from 1,687 railcars in 2008 to 1,467 railcars in 2015 (Table 4a) Southwest KS grain elevators with 50-99 railcar handling capacity were declined from in 2008 to in 2015, while the number with 100+ railcar capacity was increased from in 2008 to in 2015 In 2008, 72 of 93 (73%) of Southwest Kansas grain elevators were located within 55 miles of an ethanol plant in the state, with 71 of 90 (75%) located within 55 miles in 2015 In 2015 on average there were 2.8 non-affiliated grain elevator competitors within a 15-mile radius in Southwest Kansas, equaling 67% of the elevators located within that 15-mile radius H Central Kansas Grain Elevator Industry Characteristics The characteristics of the Kansas grain elevator industry in the central three crop reporting districts of the state – North Central (CRD 40), Central (CRD 50), and South Central (CRD 60) are shown in Table 4b and Table North Central Kansas (CRD 40): Grain elevator capacity has increased in North Central KS, with a moderate trend to concentration of rail services Ethanol plants are located within this area (Phillipburg and Russell) and near it to the west (Campus-Oakley) and south (Lyons), impacting grain markets in this region Salina is a major grain handling/transportation center In 2008 North Central KS had 61 cooperative elevators, 13 independents, and joint ventures, changing to 65 coops, 10 independents, and joint venture in 2015 (Table 4b) Grain elevator numbers increased from 75 in 2008 to 76 in 2015 Grain elevator storage capacity increased by 23.2 mb (up 39.7%) from 58.5 mb in 2008 to 81.7 mb in 2015, while average elevator storage capacity increased by 273,465 bu, from 802,035 bu in 2008 to 1,075,500 bu in 2015 The number of grain elevators with railcar access in North Central KS declined moderately from 41 (55% of all elevators) in 2008 to 34 (45% of all elevators) in 2015, with total railcar capacity declining from 906 railcars in 2008 to 878 railcars in 2015 (Table 4b) North Central KS grain elevators with 50-99 railcar handling capacity declined from in 2008 to in 2015, while the number with 100+ railcar capacity was increased from in 2008 to in 2015 In 2008, 31 of 75 (41%) of North Central KS grain elevators were located within 55 miles of an ethanol plant in the state, with 31 of 76 (41%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 2.7 non-affiliated grain elevator competitors within a 15-mile radius in North Central KS, equaling 63% of the elevators located within that 15-mile radius Central Kansas (CRD 50): Grain elevator capacity has increased in Central KS, with a trend toward concentration of rail services Ethanol plants are located within this area (Lyons) and near it to the north (Russell) and south (Pratt) Hutchinson is a major grain handling and transportation center located here In 2008 Central KS had 95 cooperative grain elevators, 19 independents, and joint ventures, with those figures changing marginally to 95 cooperatives, 20 independents, and joint venture in 2015 (Table 4b) The number of grain elevators decreased by from 112 in 2008 to 111 in 2015 Grain elevator storage capacity increased by 11.8 mb (up 9.3%) from 125.6 mb in 2008 to 137.4 mb in 2015, while average grain elevator storage capacity increased by 91,874 bu, from 1,092,333 bu in 2008 to 1,184,207 bu in 2015 The number of grain elevators with railcar access in Central KS declined marginally from 75 (66% of all elevators) in 2008 to 72 (62% of all elevators) in 2015, with total railcar capacity declining from 1,151 railcars in 2008 to 1,145 railcars in 2015 (Table 4b) Central KS grain elevators with 50-99 railcar handling capacity declined from in 2008 to in 2015, while the number with 100+ railcar capacity was increased from in 2008 to in 2015 In 2008, 57 of 112 (50%) of Central KS grain elevators were located within 55 miles of an ethanol plant in the state, with 72 of 111 (62%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 3.9 non-affiliated grain elevator competitors within a 15-mile radius in Central, KS, equaling 61% of the elevators located within that 15-mile radius Table 4b Central Kansas Grain Industry Characteristics – North Central, Central, & South Central Kansas – 2009 & 2015 July 2009 August 2015 Change A North Central Kansas (CRD 40) All Grain Elevators (#) 75 76 -1 58.5 mb 81.7 mb +23.2 802,035 bu 1,075,500 bu +273,465 41 (55%) 34 (45%) -6 (-11%) 906 878 -28 50-99 rail car handling capacity (# elevators (%)) (1.3%) (0.0%) -1 (-1.3%) 100+ rail car handling capacity (# elevators (%)) (4.0%) (5.3%) +1 (+1.3%) # Cooperatives / Independents / Joint Ventures 61C/13I/1JV 65C/10I/1JV +4C/-3I/ncJV 112 111 -1 125.6 mb 137.4 mb +11.8 1,092,333 bu 1,184,207 bu +91,874 75 (66%) 72 (62%) -3 (-4%) 1,151 1,145 -6 (0.8%) (0.0%) -1 (-0.8%) +2 (+1.6%) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) B Central Kansas (CRD 50) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) 50-99 rail car handling capacity (# elevators (%)) 100+ rail car handling capacity (# elevators (%)) (3.5%) (5.1%) # Cooperatives / Independents / Joint Ventures C C I JV ncC/+1I/+1JV 125 125 nc 196.9 mb 213.5 mb +16.6 1,469,396 bu 1,629,672 bu +160,276 86 (65%) 76 (58%) -10 (-7%) 1,859 1,431 -428 50-99 rail car handling capacity (# elevators (%)) (0.7%) (0.0%) -1 (-0.7%) 100+ rail car handling capacity (# elevators (%)) (4.5%) (5.3%) +1 (+0.8%) # Cooperatives / Independents / Joint Ventures 102C/30I/1JV 101C/29I/1JV -1C/-1I/ncJV 95 /19 /0 JV I 95 /20 /1 C South Central Kansas (CRD 60) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) South Central Kansas (CRD 60): Grain elevator capacity has increased in South Central KS, with ongoing concentration of rail services Ethanol plants are located here (Pratt) and to the north (Lyons) Wichita is a key grain handling and transportation center located in South Central KS In 2008 South Central KS had 102 cooperative grain elevators, 30 independents, and joint venture, with those figures changing marginally to 101 cooperatives, 30 independents, and joint venture in 2015 (Table 4b) The number of grain elevators was unchanged at 125 in 2008 to 125 in 2015 Grain elevator storage capacity increased by 16.6 mb (up 8.4%) from 196.9 mb in 2008 to 213.5 mb in 2015, while average grain elevator storage capacity increased by 160,276 bu, from 1,469,396 bu in 2008 to 1,629,672 bu in 2015 The number of grain elevators with railcar access in South Central KS declined moderately from 86 (65% of all elevators) in 2008 to 76 (58% of all elevators) in 2015, with total railcar capacity declining from 1,859 railcars in 2008 to 1,431 railcars in 2015 (Table 4b) South Central KS grain elevators with 50-99 railcar handling capacity declined from in 2008 to in 2015, while the number with 100+ railcar capacity was increased from in 2008 to in 2015 In 2008, 55 of 125 (41%) of Central KS grain elevators were located within 55 miles of an ethanol plant in the state, with 64 of 125 (49%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 4.6 non-affiliated grain elevator competitors within a 15-mile radius in Central, KS, equaling 76% of the elevators located within that 15-mile radius I Eastern Kansas Grain Elevator Industry Characteristics The characteristics of the Kansas grain elevator industry in the eastern three crop reporting districts of the state – Northeast (CRD 70), East Central (CRD 80), and Southeast (CRD 90) are shown in Table 4c and Table Northeast Kansas (CRD 70): Grain elevator capacity has decreased in Northeast KS Grain processor changes in Atchison have impacted this area There are no ethanol plants are located within this area, but commercial grain processing facilities are still operative in Atchison Atchison and Topeka (south) are major handling/transportation centers affecting this region In 2008 Northeast KS had 36 cooperative elevators, 24 independents, and joint ventures, changing to 35 coops, 23 independents, and joint ventures in 2015 (Table 4c) Grain elevator numbers decreased from 56 in 2008 to 53 in 2015 Grain elevator storage capacity decreased by 32.6 mb (down 25.8%) from 126.1 mb in 2008 to 93.5 mb in 2015, while average elevator storage capacity decreased by 788,686 bu, from 2,101,307 bu in 2008 to 1,612,621 bu in 2015 The number of grain elevators with railcar access in Northeast KS declined from 34 (58% of all elevators) in 2008 to 33 (47% of all elevators) in 2015, with total railcar capacity declining from 1,012 railcars in 2008 to 965 railcars in 2015 (Table 4c) Northeast KS grain elevators with 50-99 railcar handling capacity were unchanged from in 2008 to in 2015, while the number with 100+ railcar capacity was also unchanged from in 2008 to in 2015 In 2008, of 56 (2%) of Northeast KS grain elevators were located within 55 miles of an ethanol plant in the state, with of 53 (0%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 4.7 non-affiliated grain elevator competitors within a 15-mile radius in Northeast KS, equaling 71% of the elevators located within that 15-mile radius Table 4c Eastern Kansas Grain Industry Characteristics – Northeast, East Central, & Southeast Kansas – 2008 & 2015 July 2008 August 2015 Change A Northeast Kansas (CRD 70) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) 56 53 -3 126.1 mb 93.5 mb -32.6 2,101,307 bu 1,612,621 bu -788,686 34 (58%) 33 (57%) -1 (-1%) 1,012 965 -47 (11.7%) (12.0%) nc (-0.3%) nc (nc %) All Railcar Handling Capacity (# railcars) 50-99 rail car handling capacity (# elevators (%)) 100+ rail car handling capacity (# elevators (%)) (0.0%) (0.0%) # Cooperatives / Independents / Joint Ventures C C I JV -1C/-1I/ncJV 45 46 +1 68.7 mb 53.2 mb -15.5 1,461,787 bu 1,084,736 bu -377,051 21 (45%) 22 (45%) +1 (nc %) 435 376 -59 50-99 rail car handling capacity (# elevators (%)) (0.0%) (2.1%) +1 (+2.1%) 100+ rail car handling capacity (# elevators (%)) (2.1%) (2.0%) nc (0.1%) # Cooperatives / Independents / Joint Ventures 27C/21I/0JV 18C/31I/0JV -9C/+10I/ncJV 59 54 -5 33.4 mb 32.4 mb -1 547,361 bu 589,891 bu +42,530 38 (62%) 33 (60%) -5 (-2%) 277 88 -189 50-99 rail car handling capacity (# elevators (%)) (0.0%) (0.0%) nc (nc %) 100+ rail car handling capacity (# elevators (%)) (0.0%) (0.0%) nc (nc %) # Cooperatives / Independents / Joint Ventures 27C/34I/0JV 25C/30I/0JV -2C/-4I/ncJV 36 /24 /0 JV I 35 /23 /0 B East Central Kansas (CRD 80) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) C Southeast Kansas (CRD 90) All Grain Elevators (#) All Grain Elevator Storage Capacity (million bu) Average Grain Elevator Storage Capacity (bushels) Railroad Access (# (%)) All Railcar Handling Capacity (# railcars) East Central Kansas (CRD 80): Grain elevator capacity has also decreased in East Central KS One ethanol plant is located in East Central KS (Garnett), with a soybean processor (Emporia) also located in this area Topeka and Kansas City (to the east) are major grain handling transportation centers affecting this region In 2008 East Central KS had 27 cooperative elevators, 21 independents, and joint ventures changing to 18 coops, 31 independents, and joint ventures in 2015 (Table 4c) Grain elevator numbers increased from 45 in 2008 to 46 in 2015 Grain elevator storage capacity decreased by 15.5 mb (down 22.6%) from 68.7 mb in 2008 to 53.2 mb in 2015, while average elevator storage capacity decreased by 377,051 bu, from 1,461,787 bu in 2008 to 1,084,736 bu in 2015 The number of grain elevators with railcar access in East Central KS increased from 21 (45% of all elevators) in 2008 to 22 (45% of all elevators) in 2015, with total railcar capacity declining from 435 railcars in 2008 to 376 railcars in 2015 (Table 4c) East Central KS grain elevators with 50-99 railcar handling capacity increased from in 2008 to in 2015, while the number with 100+ railcar capacity was unchanged from in 2008 to in 2015 In 2008, 21 of 45 (44%) of East Central KS grain elevators were located within 55 miles of an ethanol plant in the state, with 25 of 51 (51%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 2.0 non-affiliated grain elevator competitors within a 15-mile radius in East Central KS, equaling 69% of the elevators located within that 15-mile radius Southeast Kansas (CRD 90): Grain elevator capacity has also decreased marginally in Southeast KS, while railcar handling capacity for grain elevators declined sharply during the 2008-2015 period Although there are no ethanol plants are located in Southeast KS, an ethanol plant (Garnett) and a soybean processor (Emporia) are both located just north Grain production in Southeast Kansas is well positioned for livestock feeding operations in Arkansas and for export markets through the Port of Catoosa on the Arkansas River near Tulsa, Oklahoma In 2008 Southeast KS had 27 cooperative elevators, 34 independents, and joint ventures changing to 25 coops, 30 independents, and joint ventures in 2015 (Table 4c) Grain elevator numbers increased from 59 in 2008 to 54 in 2015 Grain elevator storage capacity decreased by 1.0 mb (down 3.0%) from 33.4 mb in 2008 to 32.4 mb in 2015, while average elevator storage capacity increased by 42,530 bu (due to smaller grain elevators closing), from 547,361 bu in 2008 to 589,891 bu in 2015 The number of grain elevators with railcar access in Southeast KS decreased from 38 (62% of all elevators) in 2008 to 33 (60% of all elevators) in 2015, with total railcar capacity declining dramatically from 277 railcars in 2008 to 88 railcars in 2015 (Table 4c) There were no grain elevators in Southeast KS grain elevators with either 50-99 railcar handling capacity or 100+ railcar capacity during the 2008 to 2015 time period In 2008, 18 of 59 (30%) of Southeast KS grain elevators were located within 55 miles of an ethanol plant in the state, with of 54 (13%) located within 55 miles in 2015 (Table 5) In 2015 on average there were 2.0 non-affiliated grain elevator competitors within a 15-mile radius in East Central KS, equaling 54% of the elevators located within that 15-mile radius Table Kansas Grain Elevator Distance to Ethanol Plants and Competitive Elevator Density by Crop Reporting District – 2008 & 2015 July 2008 August 2015 Change A Elevator Distance to Ethanol Plants (Kansas) NW KS (CRD 10) Elevators within 55 miles (# (%)) 30 (61%) 27 (56%) -3 (-5%) WC KS (CRD 20) Elevators within 55 miles (# (%)) (0%) 36 (61%) +36 (+61%) SW KS (CRD 30) Elevators within 55 miles (# (%)) 72 (73%) 71 (75%) -1 (+2%) NC KS (CRD 40) Elevators within 55 miles (# (%)) 31 (41%) 31 (41%) nc (nc %) Central KS (CRD 50) Elevators within 55 miles (# (%)) 57 (50%) 72 (62%) +15 (+12%) SC KS (CRD 60) Elevators within 55 miles (# (%)) 55 (41%) 64 (49%) +9 (+8%) NE KS (CRD 70) Elevators within 55 miles (# (%)) (2%) (0%) -1 (-2%) EC KS (CRD 80) Elevators within 55 miles (# (%)) 21 (44%) 25 (51%) +4 (+7%) SE KS (CRD 90) Elevators within 55 miles (# (%)) 18 (30%) (13%) -11 (-17%) 317 (45%) 333 (48E%) +16 (+3%) - 2.9 (69%) # (%) Competitive Elevators w/in 15 miles - 1.8 (65%) SWCRD30 # (%) Competitive Elevators w/in 15 miles - 2.8 (67%) - 2.7 (63%) CentCRD50 # (%) Competitive Elevators w/in 15 miles - 3.9 (61%) SCCRD60 # (%) Competitive Elevators w/in 15 miles - 4.6 (76%) # (%) Competitive Elevators w/in 15 miles - 4.7 (71%) ECCRD80 # (%) Competitive Elevators w/in 15 miles - 2.0 (69%) SECRD910 # (%) Competitive Elevators w/in 15 miles - 2.0 (54%) State # (%) Competitive Elevators w/in 15 miles - 3.3 (67%) State-wide Average Elevators within 55 miles (# (%)) B Competitive Density of Grain Elevators (Kansas) NWCRD10 # (%) Competitive Elevators w/in 15 miles CRD20 WC CRD40 NC NE CRD70 # (%) Competitive Elevators w/in 15 miles J Grain Elevator Storage Capacity Relative to Crop Production by Region of Kansas Grain elevator storage capacity in the western and central parts of Kansas has increased relative to average production of major crops from 2008 to 2015 (Table 6) However, commercial storage capacity has declined relative to crop production in the northeast and southeast parts of the state Table Grain Elevator Storage Capacity Versus Four-Year Average Combined Corn, Sorghum, Wheat & Soybean Production by Kansas Crop Reporting District – 2008 & 2015 July 2008 NW (CRD 10) Avg Grain Production (2004-08 & 2011-15) (mln bu) August 2015 Change 106.6 mb 118.8 mb +12.2 mb 57.1 mb 88.5 mb +31.4 mb 186.7% 134.2% -52.5% WC (CRD 20) Avg Grain Production (2004-08 & 2011-15) (mln bu) 89.1 mb 94.1 mb +5.0 mb WC (CRD 20) Total Off-Farm Grain Storage (mln bu) 61.3 mb 67.8 mb +6.5 mb 145.4% 138.8% -6.6% SW (CRD 30) Avg Grain Production (2004-08 & 2011-15) (mln bu) 220.3 mb 212.3 mb -8.0 mb SW (CRD 30) Total Off-Farm Grain Storage (mln bu) 179.5 mb 218.7 mb +39.2 mb 122.7% 97.1% -25.6% 135.7 mb 155.8 mb +20.1 mb 58.5 mb 81.7 mb +23.2 mb 232.0% 190.7% -41.3% Central (CRD 50) Avg Grain Prod’n (2004-08 & 2011-15) (mln bu) 112.0 mb 114.5 mb +2.5 mb Central (CRD 50) Total Off-Farm Grain Storage (mln bu) 125.6 mb 137.4 mb +11.8 mb Central (CRD 50) Avg Grain Prodn / Off Farm Storage (%) 89.2% 83.3% -5.9% SC (CRD 60) Avg Grain Production (2004-08 & 2011-15) (mln bu) 164.8 mb 165.8 mb +1.0 mb SC (CRD 60) Total Off-Farm Grain Storage (mln bu) 196.9 mb 213.5 mb +16.6 mb 83.7% 77.7% -6.0% NE (CRD 70) Avg Grain Production (2004-08 & 2011-15) (mln bu) 107.9 mb 126.9 mb +19.0 mb NE (CRD 70) Total Off-Farm Grain Storage (mln bu) 126.1 mb 93.5 mb -33.0 mb 85.6% 135.7% +50.1% EC (CRD 80) Avg Grain Production (2004-08 & 2011-15) (mln bu) 62.5 mb 60.7 mb -1.8 mb EC (CRD 80) Total Off-Farm Grain Storage (mln bu) 68.7 mb 53.2 mb -15.5 mb 91.0% 114.1% +23.1% SE (CRD 90) Avg Grain Production (2004-08 & 2011-15) (mln bu) 67.7 mb 62.2 mb -5.5 mb SE (CRD 90) Total Off-Farm Grain Storage (mln bu) 33.4 mb 32.4 mb -1.0 mb 202.7% 192.0% -10.7% NW (CRD 10) Total Off-Farm Grain Storage (mln bu) NW (CRD 10) Avg Grain Prodn / Off Farm Storage (%) WC (CRD 20) Avg Grain Prodn / Off Farm Storage (%) SW (CRD 30) Avg Grain Prodn / Off Farm Storage (%) NC (CRD 40) Avg Grain Production (2004-08 & 2011-15) (mln bu) NC (CRD 40) Total Off-Farm Grain Storage (mln bu) NC (CRD 40) Avg Grain Prodn / Off Farm Storage (%) SC (CRD 60) Avg Grain Prodn / Off Farm Storage (%) NE (CRD 70) Avg Grain Prodn / Off Farm Storage (%) EC (CRD 80) Avg Grain Prodn / Off Farm Storage (%) SE (CRD 90) Avg Grain Prodn / Off Farm Storage (%) Northwest Kansas (CRD 10): Average production of major crops (corn, sorghum, wheat and soybeans) in Northwest KS has increased 12.2 mb (up 11.4%) from 106.6 mb during years 200408 to 118.8 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 31.4 mb (up 55.0%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in Northwest KS has declined from 186.7% in 2008 to 134.2% in 2015 These results show how strong growth in commercial grain storage in Northwest KS has affected the proportion of and possibly the demand for off-farm versus onfarm grain storage, and the changing grain market structure of Northwest Kansas Northwest Kansas is positioned as a net supply or grain exporting region of the state West Central Kansas (CRD 20): Average production of major crops (corn, sorghum, wheat and soybeans) in West Central KS has increased 5.0 mb (up 5.6%) from 89.1 mb during years 200408 to 94.1 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 6.5 mb (up 10.6%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in West Central KS has declined from 145.4% in 2008 to 138.8% in 2015 These results show how the relative stability of grain market conditions in West Central Kansas over the 2008 through 2015 period With its strong cattle feeding industry, West Central along with Southwest Kansas is positioned as a net demand or grain importing region of the state Southwest Kansas (CRD 30): Average production of major crops (corn, sorghum, wheat and soybeans) in Southwest KS has decreased 8.0 mb (down 3.6%) from 220.3 mb during years 2004-08 to 212.3 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 39.2 mb (up 21.8%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in Southwest KS has declined from 122.7% in 2008 to 97.1% in 2015 These results show the possible impact of declining irrigation water supplies in Southwest Kansas on aggregate crop production – although Southwest Kansas is still the largest crop producing region in Kansas They also show the potential for importing grains into Southwest KS to supply the needs of the cattle feeding and ethanol production industries in that part of the state Southwest Kansas along with West Central Kansas is positioned as a net demand or grain importing region of the state North Central Kansas (CRD 40): Average production of major crops (corn, sorghum, wheat and soybeans) in North Central KS has increased 20.1 mb (up 14.8%) from 135.7 mb during years 2004-08 to 155.8 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 23.2 mb (up 39.7%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in North Central KS has declined from 232.0% in 2008 to 190.7% in 2015 Similar to Northwest Kansas, these results show how strong growth in commercial grain storage in North Central KS has affected the proportion of and possibly the demand for off-farm versus on-farm grain storage, and the changing grain market structure of in that part of the state North Central Kansas is positioned as a net supply or grain exporting region of the state Central Kansas (CRD 50): Average production of major crops (corn, sorghum, wheat and soybeans) in Central KS has increased 2.5 mb (up 2.2%) from 112.0 mb during years 2004-08 to 114.5 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 11.8 mb (up 9.4%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in Central KS has declined from 89.2% in 2008 to 83.3% in 2015 Central Kansas is the location of major export trade-oriented grain terminals in the state, focusing particularly on wheat and grain sorghum procurement and shipments Bearing these factors in mind, Central Kansas is positioned as a net demand or grain importing region of the state in terms of procurement of major crops for eventual export to international markets South Central Kansas (CRD 60): Average production of major crops (corn, sorghum, wheat and soybeans) in South Central KS has increased 1.0 mb (up 0.6%) from 164.8 mb during years 2004-08 to 165.8 mb during 2011-15 (Table 6) Off-farm commercial storage has grown 16.6 mb (up 8.4%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in South Central KS has declined from 83.7% in 2008 to 77.7% in 2015 Like Central Kansas, South Central is also the location of major export tradeoriented grain terminals in the state as well as wheat processors / flour mills This part of Kansas focuses on either a) wheat and grain sorghum procurement and shipments, or b) gathering supplies of wheat for flour processing South Central Kansas is positioned as both a net demand area for wheat processing, and a grain importing region of the state in terms of procurement of major crops for eventual export to international markets Northeast Kansas (CRD 70): Average production of major crops (corn, sorghum, wheat and soybeans) in Northeast KS has increased 19.0 mb (up 17.6%) from 107.9 mb during years 200408 to 126.9 mb during 2011-15 (Table 6) Off-farm commercial storage has declined 33.0 mb (down 25.8%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in Northeast KS has increased from 85.6% in 2008 to 135.7% in 2015 Northeast Kansas is a highly productive part of the state in terms of crop production The loss of key grain processing facilities the state has dramatically affected the balance between that areas crop production and available commercial grain storage All that much more, Northeast Kansas is positioned as a net supply or exporting part of the state after recent changes in the availability of commercial grain storage and processing East Central Kansas (CRD 80): Average production of major crops (corn, sorghum, wheat and soybeans) in East Central KS has declined 1.8 mb (down 2.9%) from 62.5 mb during years 200408 to 60.7 mb during 2011-15 (Table 6) Off-farm commercial storage has also declined 15.5 mb (down 22.6%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in East Central KS has increased from 91.0% in 2008 to 114.1% in 2015 With its location near Kansas City terminal markets and with the presence of Topeka terminals, East Central Kansas is a net supply / grain export oriented region of the state This holds true although the presence of an ethanol plant (Garnett) and a soybean processor (Emporia) positively local demand for corn and soybeans Southeast Kansas (CRD 90): Average production of major crops (corn, sorghum, wheat and soybeans) in Southeast KS has declined 5.5 mb (down 8.1%) from 67.7 mb during years 2004-08 to 62.2 mb during 2011-15 (Table 6) Off-farm commercial storage has also declined 1.0 mb (down 3.0%) from 2008 to 2015 Consequently, the ratio of expected average total major grain production to total off-farm storage in Southeast KS has declined from 202.7% in 2008 to 192.0% in 2015 With its location near out-state livestock feeding operations (i.e., Arkansas) and proximity to major river export terminals (i.e., Port of Catoosa near Tulsa, OK), Southeast KS is positioned as a net supply area as an exporter of grain outside of its own area Summary and Conclusions This project finds that the Kansas grain elevator industry is trending in different directions across the areas of the state In the western and central parts or “thirds” of Kansas, the amount of grain storage has expanded over the 2008 through 2015 period – with increasing amounts of average or “expected” grain production able to be stored off-farm However, in the eastern “third” of the state the quantity of available commercial grain storage has declined, especially in Northeast and East Central Kansas While crop production continues to trend higher in Northeast Kansas, production in both East Central and Southeast Kansas is trending downward at their a marginal (Southeast) or rapid (East Central) pace – impacting the grain elevator industry in those areas Total grain storage in some areas has displayed strong growth over the 2008-2015 period, including Northwest, Southwest, and North Central Kansas, with moderate growth in commercial storage capacity in West Central, Central, and South Central Kansas as well The larger trends that have affected Kansas grain elevators include declining railcar access for medium to small grain elevators with an increasing concentration on 100 railcar plus railcar handling facilities The total railcar handling capacity of the state declined from 8,875 railcars in 2008 to 7,717 railcars in 2015, while the number of 50-99 railcar handling facilities in the state declined from 16 to 12 and the number of 100+ railcar handling facilities increased from 25 to 31 over the 2008-2015 period It is also noteworthy that in Southwest Kansas – the largest crop production and grain demand area of the state – that average combined crop production declined moderately over the 20082015 period while grain elevator storage capacity increased markedly With declining irrigation groundwater supplies in that area, it is likely that feedgrains will need to be imported into Southwest Kansas if the major livestock feeding and ethanol production industries in that area are to be maintained ...The Changing Competitive Structure of Kansas Grain Handling and Transportation Industry Selected Paper prepared for presentation at the 2016 Agricultural & Applied Economics... comprehensive Kansas grain industry data during the 2007-2008 and 2014-2015 periods Research Method Data on a) county and/ or regional location of grain handling and rail transportation facilities, b) grain. .. start” and a basis for comparison for the 2014-2015 Kansas grain industry data Results A Changes in Overall Kansas Grain Industry Characteristics The grain storage capacity of the Kansas grain industry
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