United States

Department of

Agriculture Marketing and

Agricultural

gzZy;ative Transportation of Grain

ACS

Research Report

Number 115 By Local Cooperatives
Abstract

Marketing and Transportation of Grain by Local Cooperatives

Charles L. Hunley

Marketing Specialist

David E. Cummins

Agricultural Economist

A total of 1,749 local cooperative associations handled 5.1 billion bushels

of grain during the 1990-91 marketing period. Cooperative grain storage totaled

3 billion bushels. Corn, at 2.1 billion bushels, was the leading grain marketed.

Wheat was second at 1.3 billion bushels. More than half the grain sold by cooperatives was moved by truck.

Key Words: Cooperative, first-handler, grain-handling, grain transportation.

ACS Research Report Number 115

November 1993
Preface

This study focuses on first-handlers-of-grain cooperatives for the fiscal

years ending in calendar year 1991. It is comparable with studies previously

conducted by the Agricultural Cooperative Service covering 1985-86 (ACS

Research Report 70), 1982-83 (ACS Research Report 47), and 1979-80 (ACS

Research Report 35). The statistics are expanded survey data based on a 43-

percent sample of the Nation’s local first-handlers-of-grain cooperatives. The

term “cooperative,” as used in this report, refers to local cooperative associations that were first-handlers of grain plus the first-handler operations of regional cooperatives that operated line elevators. The Nation was divided into five

regions for this study.

The authors express sincere appreciation to the more than 750 cooperative managers who furnished the information that made this report possible.
Contents

Highlights ......................................................................................................... iii

Profile of Local Grain-Handling Cooperatives .................................................. 1

Membership in Local Cooperatives .......................................................... 2

Licensed Local Grain Storage Capacity ................................................... 2

Type of Storage Capacity ......................................................................... 2

Storage Capacity ...................................................................................... 3

Grain Volume .................................................................................................... 5

Grain Bank ............................................................................................... a

Disposition of Grain Sales ........................................................................ a

Mode of Transportation .......................................................................... 11

Railcars Per Shipment ........................................................................... 12

Unit-Train Loading Facilities ................................................................... 12

Railroad Abandonment .......................................................................... 14

Appendix ........................................................................................................ 15

ii
l Local grain-handling cooperatives handled an average of 2.9 million

bushels of grain per association in the 1990-91 marketing period. That amount

included grain handled through the grain bank and Commodity Credit

Corporation (CCC) programs.

l Storage capacity per cooperative association averaged 1.7 million

bushels. Taking the number of locations per association into account (2.3),

average storage capacity per location was about 740,000 bushels. Storage

capacity per location was virtually unchanged compared with 5 years ago, but

capacity per association increased about 13 percent.

l About 94 percent of the grain-handling associations were licensed by

Federal and/or State agencies. Most had a State license; about 15 percent had

both.

l About 44 percent of the grain sold was corn. Wheat accounted for about

27 percent, while soybeans accounted for 14 percent and grain sorghum 8 percent. Eleven other grains made up the balance.

l The overall turnover rate (ratio of grain handled to storage capacity) was

1.7, unchanged from the 198586 marketing period, but slightly lower than in

previous years studied.

l Excluding grain bank and CCC grain, 8 percent of the grain handled was

sold locally, 43 percent was sold to other cooperatives, and 49 percent went to

noncooperative grain dealers. Marketing through other cooperatives was

unchanged from 198586, while the reduction in local sales was offset by sales

to noncooperative businesses.

l Local cooperatives transported about 53 percent of their grain marketed

by truck, 45 percent by rail, and 2 percent by barge or other conveyance. Of the

grain shipped by rail, though down from 46 percent in 1985-86, about 34 percent was shipped in units of 2-24 railcars. Units of 25-49 railcars and 50-74 railcars each accounted for about 25 percent of total volume shipped. About 17

percent of the cooperative locations were capable of loading units of 25 or more

cars.

l In the past 3 years, about 3 percent of locally owned cooperative elevators lost rail service through abandonment.

. . . 111
Marketing and Transportation of Grain by Local Cooperatives

Charles L. Hunley

Marketing Specialist

David E. Cummins

Agricultural Economist

Local grain-handling cooperatives are extensively involved in the movement of grain from the

farmgate into the marketing channels that provide

farmers access to domestic and international markets. These local cooperatives consolidate the harvest from individual farms into larger volumes that

command the respect and meet the needs of major

buyers.

Local cooperatives are seen as the marketing

eyes and ears of producers to alternative marketing

practices that will enhance the economic well-being

of their producer-members, related agribusinesses,

and other members of rural communities throughout the United States. Local farmer-owned grain

marketing cooperatives provide related services

through programs that assemble grain and furnish

market intelligence. They also consolidate marketing services for the vast volumes of grain produced, harvested over short periods of time, and

stored and marketed over extended periods.

PROFILE OF LOCAL GRAIN-HANDLING

COOPERATIVES

Cooperatives handled a diversity of grains,

usually dictated by the different grains produced

and marketed by members. Both membership and

grain marketed varied widely among the five designated regions used in this report (fig. 1).

Figure l- Reporting Regions

1
Membership in Local Cooperatives

The number of producers that were members

of local cooperatives dropped when compared with

the 1985-86 survey period. This reflects declining

numbers of local cooperatives during the two survey periods. Total membership dropped 27 percent

during the 5-year period. Average membership

declined 17 percent, from 1,125 to 939 members per

cooperative (table 1). These changes in part reflect

local cooperative mergers, yet the average number

per cooperative continued to decline as producers

consolidated into larger farming units and looked

for alternative marketing options not offered by

cooperatives.

Region II had the largest average membership,

with 3,354 members per association. Regions I and

V had an average membership of about 1,018 and

regions III and IV showed about 800 and 900,

respectively. Grain producers amounted to about

50 percent of total membership, varying from 72

percent in region V to 9 percent in region II.

Licensed Local Grain Storage Capacity

Nearly all (94 percent) of the grain handling

cooperatives were licensed to store and market

grain. Of them, 60 percent had only a State license,

24 percent had only a Federal license and 16 percent had both.

About 98 percent of the local associations in

region IV and about 94 percent in region III were

licensed either by their respective states or through

Federal licensing procedures. The percentage of the

licensed associations in region II was considerably

lower (table 2).

Compared with 1985-86 and other survey

years, the percent of licensed associations was

essentially unchanged. Also, the proportion of

Federal to State licenses showed little change from

1979-80.

Type of Storage Capacity

The upright elevator (height greater than

width) was the predominate type of grain storage

facility. It made up about 81 percent of all storage

capacity controlled by local cooperatives. This is up

about 5 percentage points from 1985-86, but the

same as for earlier study periods (see regional comparison in table 3).

Nearly all cooperatives indicated at least some

flat storage capacity, mostly used as temporary

storage for grain during or shortly after harvest,

otherwise used for storing other commodities or

housing equipment.

Table l- Membership in local grain-handling cooperative associations, by region, 1990-91

Region Associations

Members

Total

Grain producers All others

Number

I 166 99,269 69,740 169,009

II 53 14,997 162,754 177,751

III 966 430,619 346.452 777,071

IV 507 247,802 213,169 460,971

V 57 41,887 16,182 58,069

All regions:

1990-91

1985-86

1982-83

1979-80

1,749 834,574 808,297 1,642,871

2,002 1,144,895 1,106,559 2,251,454

2,060 1,235,803 631,439 1,867,242

2,339 1,481,771 1,043,597 2,525,368

2
Table 3- Grain storage capacity of local cooperative

associations, by storage type and region, 1990-91

Region Total capacity

1,000 bu.

Type of storage

Upright Flat

Percent

I 280,523 89 11

I I 134,230 89 11

III 1,310,116 82 18

IV 1,055,337 74 26

V 225.667 84 16

Table 2- Cooperative associations with licensed grain storage warehouses,

by type of license and region, 1990-91

Region Total

Federal

Typeoflicense

State

Number

Federal and State

Nolicense

I 147 34 54 59 19

II 33 10 16 7 20

III 911 177 575 159 55

IV 495 164 298 33 12

V 57 11 37 9

All regions:

1990-91

198586

1982-83

1979-80

1,643 396 980 267 106

1,874 407 1,203 264 128

1,937 486 1,220 231 123

2,079 497 1,329 253 260

Storage Capacity

Total storage capacity of local cooperative elevators reversed the upward trend of previous

study periods. Changes in storage capacity varied

among regions-those in regions I, IV, and V

increased while those in regions II and III declined.

Overall, total storage declined less than 1 percent

from 1985-86, but still remained above the levels in

1982-83 and 1979-80 (table 3).

All regions:

1990-91 3,005,873 81 19

1985-86 3,015,739 76 24

1982-83 2,514,930 81 19

1979-80 2,334,743 81 19

Overall, cooperative elevator storage capacity

in 1990-91 averaged about 1.7 million bushels per

association, up about 15 percent since 1985-86

(table 4 and fig. 2). Average storage capacity varied

widely among regions-nearly 3.5 million bushels

in region V to just below 1.5 million in region III.

Storage capacity per location averaged 740,000

bushels in 1990-91, virtually unchanged from 5

years earlier. Capacity per location averaged highest in region 11 at about 1 million bushels and lowest in region I at 576,000 bushels (table 4).

Mergers, consolidations, and acquisitions are

reflected in the significant 15-percent increase to 2.3

in the number of locations per association. Region

V associations had the largest average number of

locations at 5.3, reflecting the large area serviced

per cooperative.

3
Figure 2- Storage Capacity per Association, Local Grain-Handling Co-ops, U.S., Selected Years

Bushels (million)

1.8

1.7

1.6

1.5

1.4

1.3

1.2

1.1

1.0

1979-80 1982-83 1985-86

Marketing year

Table 4- Local grain-handling cooperatives: locations per association and storage capacity,

by region, 1990-91

Region Associations Locations per association

Storage capacity

Per association Per location

I 166 2.8 1,595 576

Ii 53 2.6 2,557 1001

III 966 2.0 1,357 678

IV 507 2.3 2,080 905

V 57 5.3 3,472 664

All regions:

1990-91

1985-86

1982-83

1979-80

__________________ Number ____ ___.___ ___ ____ __________________ 1,000 b&,& ____ __ ___________ __

1,749 2.3 1,702 740

2,002 2.0 1,506 737

2,060 1.9 1,221 634

2,339 1.7 998 574

4
Use of facilities showed no change from 1985-

86, but remained below the rates of 10 years ago.

The annual overall turnover rate (ratio of volume

handled to total storage capacity) was 1.7. It varied

widely among regions (table 5).

GRAIN VOLUME

Local cooperatives handled about 5.1 billion

bushels of grain during their 1991 fiscal years. This

included grain handled for regular marketing

channels, grain bank programs, and Commodity

Credit Corporation (CCC). Cooperatives in region I

handled the largest volume per association at 3.3

million bushels, followed closely by region IV at

3.1 million bushels (table 5). Grain handled averaged 1.3 million bushels per location for all cooperatives.

Cooperatives in region III continued to be the

largest assemblers of grain, handling 54 percent of

the total in 1990-91. Region IV had 28 percent.

Compared with 1985-86, region III decreased (4

percentage points) and region IV gained (five percentage points) in their shares of total grains handled by local cooperatives (table 6). Region III was

the major assembler of all grains except sorghum,

rapeseed, and canola. Rapeseed showed up in only

region V.

The total volume of grain moving into regular

marketing channels through local cooperatives in

1990-91 was up 40 percent from 1985-86 (table 7).

Grain marketed per association rose nearly 60 percent (fig. 3). Much of this increase reflects the

changes in the Government storage and export

enhancement programs, which encouraged a more

aggressive movement of grains directly into marketing channels.

Corn was the major grain (44 percent) moving

into regular marketing channels. Wheat was next at

27 percent, soybeans at 14 percent, and grain

sorghum at 8 percent (table 8 and fig. 4).

CCC grain storage and handling declined

more than 1 billion bushels from 1985-86 to 146.2

million bushels in 1990-91. Seventy percent of total

CCC grain handled was corn, followed by wheat at

21 percent (table 9). Cooperatives in regions III and

IV accounted for 89 percent of the CCC grain handled (table 10).

Table s-Grain volume handled per association and location, and turnover rate, by region, 1990-91

Grain volume handled (

Region Turnover rate *

Total Per association Per location

__________________________________ 1,000 bushe/s ___________._.__.__.._._..__..._____ Ratio

I 575,745 3,271 1,182 2.05

II 112,266 2,118 838 0.84

III 2,794,440 2,892 1,446 2.13

IV 1,436,809 2,834 1,232 1.36

V 204,663 3,149 602 0.91

All regions:

1990-91 5,123,923 2,900 1,262 1.70

1985-86 5,068,212 2,532 1,239 1.70

1982-83 4,696,414 2,270 1,184 1 .so

1979-80 4,578,081 1,957 1,125 2.00

1 Includes grain bank and CCC grain.

2 The ratio of volume handled to storage capacity.

5
Table 6- Distribution of grains handled by local cooperative associations, by region, 1990-91

Type of grain

I II Ill

Region

Total

IV V

Percent

Corn

Wheat

Soybeans

Sorghum

Oats

Barley

RYa

Flax

Canola

Rapeseed

Sunflower

Buckwheat

Millet

Triticale

Safflower

All grains:

1990-91

1985-86

1982-83

1979-80

17

4

20

15

1

54

12 2 54 28

11 4 58 23

13 5 54 24

12 8 52 22

1 61

1 46

7 65

2 5

10 67

83

99

100

25

98

100

86

75

100

21

36

8

93

7

1

1

2

14

10

12

1

16

20

100

14

100

100

100

100

Table 7- Grain volume marketed: Total and average

per association and location, by region, 1990-91

Grain volume marketed 1

Region

Total Per association Per location

1,000 bushels

I 556,470 3,162 1,143

II 111,145 2,097 829

III 2,604,713 2,696 1,347

IV 1,314,944 2,594 1,278

V 194,052 2,985 571

All regions:

1990-91 4,781,324 2,706 1,178

1985-86 3,403,760 1,700 832

1982-83 3,920,968 1,904 989

1979-80 4,578,081 1,957 1,124

1 Does not include Grain Bank and CCC programs grain.

Table 8- Volumes of selected grains marketed by

local cooperative associations through regular

market channels, 1990-91

Type of grain

Corn

Wheat

Soybeans

Grain Sorghum

Oats

Barley

Rye

Flax

Canola

Rapeseed

Sunflower

Buckwheat

Millet

Triticale

Safflower

Total

1 Less than 0.5 percent.

Regular market volumes

Total Distribution

7,000 bushels Percent

2,115,847 44

1,283,354 27

666,869 14

378,690 8

83,287 2

193,631 4

5,006 (‘1

2,251 (‘)

958 (‘1

3 (‘1

45,441

149 ;I

5,334 (‘1

464 (‘1

40 (‘)

4,781,324 100
Figure 3-Grain Marketed per Association, Local Grain-Handling Co-ops, U.S., Selected Years

Bushels (million)

3.0

2.5

2.0

1.5

1979-80 1982-83 1985-86

Marketing year

1990-91

Figure 4- Distribution of Grains Marketed by Local Grain-Handling Co-ops, U.S., 1990-91

Other Grains (7.0%)

Grain Sorghum (8.0%)

Soybeans (14.0%)

All Wheat (27.0%)

Corn (44.O%)

7
Table g-Regular market, Grain Bank, and CCC

grains handled by local cooperative associations,

by type of grain, 1990-91

Grain

Grain handled

Regular market Grain Bank ccc ’

1,000 bushels

Corn 2,115,847 132,329 102,776

Wheat 1,283,354 24,937 30,096

Soybeans 666,869 13,929 2,618

Grain Sorghum 378,690 18,778 9,908

Oats 83,287 5,643 10

Barley 193,631 854 760

Rye 5,006

Flax 2,251

Sunflower 45,441

Other grains z 6,946

Total:

1990-91

1985-86

1982-83

1979-80

4,781,322 196,470 146,168

3,403,760 471,142 1,193,310

3,920,968 283,603 491,659

4,350,569 115,325 112,187

1 Commodity Credit Corporation.

2 Buckwheat, millet, rape, triticale, and safflower.

Grain Bank

Member participation in grain bank programs

was down 58 percent in 1990-91 from 1985-86. Corn

accounted for 67 percent of all bank grain handled.

Cooperatives in regions III and IV handled 92 percent of all the activity (tables 9 and 10).

Disposition of Grain Sales

Local cooperatives assemble grain supplies as

the initial stop in the marketing chain. Forty-three

percent of total grains sold by local cooperatives

went to other cooperative organizations,

unchanged from 1985-86. This group included

regional cooperatives, merchandisers, feed manufacturers, and processors. Local marketing

decreased 3 percentage points compared with 1985-

86. Of the grain sold locally, about 60 percent was

used for locally manufactured feed. Another 24

percent was sold to local farmers as grain and 16

percent to truckers who buy for resale. Marketing

to noncooperative companies continued to

increase, reaching nearly half of total local cooperative grain sales (table 11 and fig. 5).

Table lo- Grain Bank and CCC grain handled by local cooperative associations, by region, 1990-91

Region

Grain Bank grain CCC Grain

Volume Distribution of volume Volume Distribution of volume

I

II

Ill

IV

V

All regions:

1990-91

1985-86

1982-83

1979-80

1,000 bushels

13,754

1,151

106,960

74,201

406

196,472

471,142

283,603

115,325

Percent

7

1

54

3 8

11

100

1,000 bushels

5,522

0

82,767

47,664

10,206

146,159

1,193,310

491,659

112,187

Percent

4

0

57

3 2

7

100

-

1 Less than 0.5 percent.
The percentage of marketings by local cooper- wheat and soybeans was sold locally or to truckers.

atives to other cooperatives increased in regions III About 54 percent of the wheat and 52 percent of

and V, but declined elsewhere (appendix table 2). the soybeans stayed in cooperative channels. About

The proportion of each grain sold to different 51 percent of the corn moved to noncooperative

outlets varied greatly. About 35 percent of all oats companies and 13 percent was marketed locally

was sold locally, while only about 1 percent of the (appendix table 3).

Table 1 l- Distribution by market outlet of grain sold by local cooperative associations, 1990-91

Grain sold

Region Locally To cooperatives To noncooperatives

1990-91 1985-86 1990-91 1905-06 1990-91 1985-86

Percent

I 7 9 29 35 64 56

II 4 19 13 21 83 60

III 9 10 55 49 36 41

IV 9 14 26 37 65 49

V 2 1 45 29 53 70

All Regions 8 11 43 43 49 46

Figure E& Grain Volume Sold by Market Outlet, Local Grain-Handling Co-ops, U.S., Selected Years

Percent

Sold locally Sold to cooperatives

Market outlet

Sold to noncooperatives

9
Table 12- Distribution of grain marketed by local cooperative associations, by mode of transportation, by

region, 1990-91 and 1985-86

Mode of transportation

Region Truck Rail Other

1990-91 198586 1990-91 198586 1990-91 1985-86

Percent

I 56 54 43 44 1 2

II 8 1 54 2 27 17 19

III 50 52 49 48 1 (‘1

IV 57 55 42 45 1

V 26 30 37 51 37 19

All regions 53 52 45 46 2 2

1 Less than 0.5 percent.

Table 13- Distribution of grain marketed by local cooperative associations by mode of transportation, by

type of grain, 1990-91 and 1985-86

Mode of transportation

Type of grain Truck Rail Other

1990-91 1985-86 1990-91 198586 1990-91 1985-86

Corn 51

Wheat 40

Soybeans 71

Sorghum 72

Oats 83

Barley 4 1

Rye 44

Flax 57

Canola 70

Rapeseed 100

Sunflower 78

Buckwheat 88

Millet 37

Triticale 100

Safflower 100

All grains 53

57

30

71

72

74

30

29

64

100

48

28

63

100

96

52

48

54

27

27

17

58

56

43

30

22 52

12 7 2

63 3 7

4

45

Percent

42

6 7

2 6

2 7

2 6

6 7

71

3 6

4 6 2 2

1 1

6 3

2 3

1 1

(‘1 (‘1

1 3

1

1 Less than 0.5 percent.

10
Mode of Transportation

Local cooperative elevators slightly increased

their use of trucks to transport grain in 1990-91-m

53 percent of their grain marketed from 52 percent

in 1985-86. Truck transportation increased sharply

in region II in 1990-91 to 81 percent of total region

II grain shipped (table 12).

Mode of shipment varied widely by type of

grain. The proportion of corn shipped by truck

declined 6 percentage points from 1985-86, to 51

percent in 1990-91. Most other major grains

showed an increase. Shipment of wheat by truck

grew from 30 percent in 1985-86 to 40 percent.

Trucks continued as the primary vehicle (71 percent) for shipping soybeans (table 13).

Railroads handled 45 percent of grain volume

marketed by local cooperatives, down 1 percentage

point from 1985-86. Cooperatives in region III were

the biggest users of rail shipments, shipping about

49 percent of total marketings by rail. Rates in

regions I and IV were 43 and 42 percent, respectively. In contrast, cooperatives in region II shipped

only 2 percent of their grain by rail. Region V cooperatives significantly increased shipment by water

to 37 percent. Region II cooperatives used water for

17 percent of their shipments.

Table 14- Storage capacity on major railroads serving local cooperatives, by region, 1990-91

Region

Rail road Total I II III IV V

1,000 bushels

Burlington Northern, Inc. 539,772

Union Pacific Railroad Co. 291,371

Atchison, Topeka & Santa Fe 276,029

Chicago & North Western 245,610

Norfolk Southern 99,342

So0 Line 82,409

CSX Transportation 73,628

Illinois Central Railroad Co. 63,794

Kyle Railroad 52,276

St. Louis Southwestern 44,212

Missouri Pacific 43,478

Southern Pacific 42,109

Chicago, Central & Pacific 39,430

Toledo, Peoria & Western 22,532

Huron & Eastern Railway 20,583

Red River Valley & Western 20,194

Dakota, Minnesota & Eastern 19,012

MNVA Railroad 16,284

Iowa Northern Railway Co. 16,152

Iowa Interstate Railroad, Ltd. 14,258

Dakota Southern Railway 13,560

Consolidated Rail Corporation 13,065

-

-

-

61,081

-

59,459

-

-

-

70

10,844

20,583

-

-

-

11,807

8,792

40,378

-

-

3,224

-

3,425

1,842

-

15,533

-

20,601

-

-

-

-

-

-

-

-

-

-

220,490

6,416

7,911

228,564

35,037

82,409

10,744

61,953

-

15,352

8,763

859

39.360

11,688

-

20,194

19,012

16,284

16,152

14,258

13,560

1,258

272,354

181,947

268,117

17,046

-

-

52,276

13,326

34,715

5,815

-

38,136

62,630

11
Burlington Northern (BN) Railroad served

about 25 percent of the cooperatives’ storage located on operative rail lines. The Union Pacific and

the Atchinson, Topeka, and Santa Fe railroads were

next, each with about 13 percent (table 14).

Railcars Per Shipment

Grain shipped in multiple-car units continued

to increase in 1990-91 while single-car shipments

declined to 5 percent. Use of 2-24 and 100 or more

car units declined while use of 25-49,50-74, and 75-

99 car units increased. In region III, the largest

grain shipping area, 34 percent of the rail grain

shipped moved in 50-74 car units, 29 percent in 25-

49 car units, 20 percent in 2-24 car units, and 12

percent in 75-99 car units (table 15 and fig. 6).

Thirty percent of the corn volume shipped by

rail and 60 percent of the sorghum went in 2-24 car

units. Volumes of the major grains shipped were

about the same for 24-49 car units and 50-74 car

units (table 16).

Unit-Train Loading Facilities

About 28 percent of all local cooperative associations and about 17 percent of all cooperatively

controlled locations were capable of handling unittrains of 25 or more cars.

Storage capacity per location with unit-train

capability averaged 1.4 million bushels. Region III

had the smallest capacity per location at 1.1 million

Figure 6-Grain Volume Marketed by RailcarsDJnit, Local Grain-Handling Co-ops, U.S., Selected Years

Percent

100

80

60

100 plus cars

75-99 cars

50-74 cars

25-49 cars

2-24 cars

Single car

1979-80 1982-83 1985-86

Marketing year

12
Table 15 - Percentage distribution of rail shipments by local cooperative associations by number of

railcars per shipment, by region, 1990-91

Number of cars in rail shipment

Region Volume Single 2-24 25-49 50-74 75-99 loo plus

1,000 bushels Percent

I 238,880 1 69 7 20 3

II 2,389 8 92

III 1,290,517 5 20 29 34 12

IV 546,263 6 54 15 15 9 1

V 70,989 1 20 79

All regions:

1990-91 2,149,038 5 34 25 25 10 1

1985-86 1,575,486 8 50 19 17 3 3

1982-83 1,661,769 17 48 16 11 5 3

1979-80 1,866,907 41 29 11 7 8 4

Table 16-Percentage distribution of volume of selected major grains shipped by rail by local cooperative

associations, by number of railcars per shipment, 1990-91

Number of cars

Corn Wheat

Type of grain

Soybeans Sorghum Oats Barley

Percent

Single 2 7 4 6 9 8

2-24 30 39 32 60 46 24

24-49 24 26 22 11 20 41

50-74 26 28 28 17 25 27

75-99 17 (‘1 13

100 or more 1 (‘1 1

1 Less than 0.5 percent.

Table 17- Number of cooperative associations and number of locations capable of loading 25 or more car

units and storage capacity per association and location, by region, 1990-91

Region Associations Locations

Total

Storage capacity

Per association Per location

I

II

III

IV

V

Total

__________ Number __________

32 43

1 4

347 487

81 114

24 32

485 680

_______ ______ _____-__---___ 1,000 bushels ____ ______________ ________

86,527 2,708 1,998

33,242 33,242 8,310

531,015 1,530 1,092

225,105 2,787 1,972

53,060 2,221 1,644

928,949 1,917 1,366

13
bushels, while those in region II averaged 8.3 million bushels. The other regions ranged from 1.6 to

2.0 million bushels (table 17).

Railroad Abandonment

Rail service lost because of abandonment

occurred at 126 cooperative elevator locations during the 1988-91 period, down sharply from the 289

locations affected during 1983-86. Storage capacity

for the 126 locations averaged about 600,000

bushels (table 18). Nearly half of the 126 locations

were in region III, and accounted for 61 percent of

total abandoned capacity. Region II had the fewest

abandonments, while region I had the smallest

amount of storage capacity abandoned.

Table la- Storage capacity of cooperative associations and locations where rail service was discontinued

during 1988-91, by region, 1990-91

Region Associations Locations

Total

Storage capacity

Per association Per location

I

II

III

I V

V

Total

__________ Nu,,,ber __________ _______ _____ ______ _____ ____ 1,000 bus/,& ________ __ ________ ________

10 13 3,589 359 276

8 8 5,955 744 744

58 60 45,718 788 762

18 18 8,711 484 484

22 27 10,738 488 398

116 126 74,711 644 593

14
Appendix

Appendix Table l-Volumes of grains marketed by local cooperative associations, by region, 1990-91

Type of grain

I II III

Region

Total

IV V

Corn

Wheat

Soybeans

Sorghum

Oats

Barley

Rye

Flax

Canola

Rapeseed

Sunflower

Buckwheat

Millet

Triticale

Safflower

358,151

50,577

133,367

253

12,544

1,048

15

515

28,819

18,530

49,347

6,273

8,168

8

1,000 bushels

1,288,198 434,406 6,273 2,115,847

590,884 467,133 156,230 1,283,354

432,528 51,627 666,869

19,838 352,303 23 378,690

56,066 5,919 590 83,287

160,235 1,675 30,673 193,631

4,946 45 5,006

2,251 2,251

241 194 958

3 3

44,424 1 ,017 45,441

149 149

4,564 770 5,334

349 49 66 464

40 40

Total 556,470 111,145 2,604,713 1,314,944 194,052 4,781,324

Appendix table z- Volume of grain sold by local

cooperative associations by market outlet, by

region, 1990-91

Region Sold Sold to Sold to

locally cooperatives noncooperatives

7,000 bushels

I 40,790 157,948 357,731

II 4,154 14,735 92,256

III 221,845 1,434,409 948,459

IV 121,400 342,736 850,808

V 3,716 87,415 102,920

All regions 391,905 2,037,243 2,352,174

Appendix table 3- Distribution of grains sold by local

cooperative associations, by market outlet, 1990-91

Grain sold:

Type of grain

Locally To co-ops To nonco-ops

Percent

Corn 13 36

Wheat 1 54

Soybeans 1 52

Grain Sorghum 9 20

Oats 35 28

Barley 11 58

Rye

f ,

41

Flax 60

Canola 12

Sunflower 1 58

Other grains 2 6 21

51

45

47

71

37

3 1

57

40

88

41

73

1 Less than 0.5 percent

2 Buckwheat, millet, rape, triticale, and safflower.

1 5
Appendix Table 4-Volume of grain shipped by rail by local cooperative associations, by number of cars per

shipment, by region, 1990-91

Region

Single 2-24

Number of cars

25-49 50-74 75-99 1 ocl plus

I 2,590 165,219

II 196 2,194

III 65,997 255.440

IV 30.228 298,439

V 519 14,435

1,000 bushels

15,484 47,911 0 7,676

0 0 0 0

376.338 437,896 154,846 0

83,271 79,450 51,624 3,251

56,035 0 0 0

All regions:

1990-91

1985-86

1982-83

1979-80

99,530 735,727 531,128 565,257 206,470 10,927

124,861 791,717 292,358 268,358 45,309 52,247

275,196 797,964 271.318 182,729 78,181 56,381

759,144 542,783 208,464 138,992 143,572 73,952

Appendix Table 5- Distribution of volume of grains handled by local cooperative associations,

by region, 1990-91

Region

Type of grain

I II

All regions

III IV V

Percent

Corn

Wheat

Soybeans

Sorghum

Oats

Barley

Rye

Flax

Canola

Rapeseed

Sunflower

Buckwheat

Millet

Triticale

Safflower

64 26 49 33 3 44

9 17 23 36 81 27

24 44 17 4 14

(‘1 6 1 27 8

(2, 7 2 ;:I I:; 2

6 16 4

(‘1

I:;

(‘1

I:;

(‘1 (‘1 (‘1

I:; I:;

;I

(‘1 1

(‘1 (‘) I:;

(‘1 (‘1

1 Less than 0.5 percent.

16
Appendix table 6- Grain marketed by local

cooperative associations, by mode of

transportation, by region, 1990-91

Region

Mode of transportation

Truck Rail Other

Total

I 311,456 238,880 6,134 556,469

II 90,434 2,389 18.322 111,145

III 1,306,512 1,290,517 7,683 2,604,713

IV 752,579 546,263 16,102 1,314,944

V 51,560 70,989 71,503 194.051

All regions:

1990-91

1985-86

1982-83

2,512,540 2,149,038 119,744 4.781,322

1,763,942 1,575,486 64,332 3,403,760

2,153,214 1,661,770 105,984 3,920,968

1,000 bushels

17
U.S. Department of Agriculture

Agricultural Cooperative Service

P.O. Box 96576

Washington, D.C. 20090-6576

Agricultural Cooperative Service (ACS) provides research, management, and

educational assistance to cooperatives to strengthen the economic position of farmers

and other rural residents. It works directly with cooperative leaders and Federal and

State agencies to improve organization, leadership, and operation of cooperatives and

to give guidance to further development.

The agency (1 ) helps farmers and other rural residents develop cooperatives to obtain

supplies and services at lower cost and to get better prices for products they sell; (2)

advises rural residents on developing existing resources through cooperative action to

enhance rural living; (3) helps cooperatives improve services and operating efficiency;

(4) informs members, directors, employees, and the public on how cooperatives work

and benefit their members and their communities; and (5) encourages international

cooperative programs.

ACS publishes research and educational materials and issues Farmer Cooperatives

magazine. The United States Department of Agriculture (USDA) prohibits discrimination

in its programs on the basis of race, color, national origin, sex, religion, age, disability,

political beliefs and marital or familial status. (Not all prohibited bases apply to all

programs). Persons with disabilities who require alternative means for communication of

program information (braille, large print, audiotape, etc.) should contact the USDA Office

of Communications at (202) 720-7808 (TDD).

To file a complaint, write the Secretary of Agriculture, U.S. Department of Agriculture,

Washington, D.C. 20250, or call (202) 720-7327 (voice) or (202) 720-l 127 (TDD). USDA

is an equal employment opportunity employer.