Northern Ag Network
Northern Ag Network
Northern Broadcasting System    Northern News Network    Northern Sports Network
Search This Site...
Search This Site...
How Far Does Montana Grain Travel from the Farm?

How Far Does Montana Grain Travel from the Farm?

10/2/2018 3:40:00 PM/Categories: Popular Posts, General News, Today's Top 5, Grains, Wheat, Grain Markets, Montana State University

by Dr. Anton Bekkerman, Associate Professor of Economics, Montana State University

 

Over the past several months, Kate Fuller and I conducted a survey of Montana’s grain farmers to assess their production and marketing decisions. The survey effort was generously supported by the Montana Wheat and Barley Committee and was intended to provide Montana’s grain industry with a better understanding of the marketing landscape.

One of the questions we asked was about the distance that Montana grain farmers travel to deliver their grain to an elevator. Delivery distance studies have been conducted in surrounding states, including North Dakota and Washington, but no similar information exists for Montana. Understanding transportation patterns can help inform the extent to which delivery costs could affect farm business marketing profitability when fuel costs change.

The table below shows the proportion of surveyed producers that delivered across four different distance ranges. The first column shows the overall average from the responses, and the second column presents averages that are weighted by how much wheat was planted in the county of the respondent. Regardless of how the data are presented, the results of the survey indicate that the majority of Montana’s producers drive their grain between 11-50 miles to an elevator. Additionally, approximately one-fifth of the producers deliver grain over 50 miles.

 

Unweighted

Weighted by planted acres

State average

State average

0-10 mi

12.24%

11.83%

11-25 mi

30.41%

34.98%

26-50 mi

31.61%

33.23%

50+ mi

25.74%

19.96%

 

 

In addition to the average responses across the state, it is important to consider how the marketing landscape differs across Montana. The table below shows weighted survey responses in four agricultural districts that produce the majority of Montana grains.

 

State average

North Central, MT

Northeast, MT

Central, MT

South Central, MT

0-10 mi

11.83%

13.56%

8.45%

7.90%

15.15%

11-25 mi

34.98%

41.44%

24.17%

33.11%

10.03%

26-50 mi

33.23%

32.79%

34.52%

32.07%

34.89%

50+ mi

19.96%

12.21%

32.86%

26.93%

39.93%

 

The results indicate that in most regions, over 25% of grain travels over 50 miles to be delivered to an elevator. In areas where there are fewer grain elevators—such as South Central Montana—survey respondents indicate that nearly 40% of their grain was driven over fifty miles.

How does Montana’s grain transportation landscape compare to other states? The table below indicates that there are significant differences in grain marketing, with Montana producers driving substantially longer distances to deliver their grain. The table shows that in North Dakota and Washington, producers drive 71-85% of their grain under 25 miles to grain elevator, while Montana producers deliver only 47% of their grain this distance.

 

Montana

Washington

North Dakota

0-10 mi

12%

64%

35%

11-25 mi

35%

21%

36%

26-50 mi

33%

12%

14%

50+ mi

20%

3%

15%

 

Have you faced challenges in delivering grain across longer distances? Has your delivery distance changed over time? We would value your thoughts and information as we continue to better understand how differences in marketing landscapes across the northern Great Plains is related to differences in risk exposure and profitability for the grain industries in this region.

 

 

Dr. Anton Bekkerman is an associate professor in the Department of Agricultural Economics and Economics at Montana State University, joining the faculty in 2009 after completing his PhD at North Carolina State University. Bekkerman's primary areas of research are grain marketing, basis and price forecast modeling, understanding how grain prices are affected by changes in supply chain infrastructures and quality demands, and analyzing the economic trade-offs of adopting alternative dryland cropping systems in Montana. One of his current projects is an investigation of how new grain loading technologies are affecting prices that Montana farmers receive for their wheat. Bekkerman is also examining the economic impacts that Montana's rapidly expanding dry pulse industry will have on the state's crop industry.

 

Originally published at AgEconMT.com

Print

1 comments on article "How Far Does Montana Grain Travel from the Farm?"

0
0

Nate

10/4/2018 10:43 AM

how far does it go?

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Recent Ag News

OPINION: CSKT Negotiated Water Rights Compact – Good for Montana Agriculture

12/17/2018 8:29:00 AM
The success of Montana’s agriculture industry is dependent upon water and water right certainty. It is easily the single most important resource for people across Montana, which is why ratification of the negotiated Montana CSKT Water Compact is critical. >> Read More
Article rating: No rating

Excitement Surrounds Growing Consumer Demand for Pulses

12/17/2018 7:05:00 AM
Grocery shoppers may not realize, but some of their favorite foods are actually made from pulse crops grown in the Northern Plains and growing consumer demand for pulses has both some farmers and grocery stores excited. >> Read More
Article rating: No rating

ELD Waiver for Livestock Haulers in Place ‘Until Further Notice’

12/17/2018 5:00:00 AM
Drivers hauling livestock and insects can continue to run on paper logs — and without an electronic logging device — “until further notice,” the Federal Motor Carrier Safety Administration said Thursday in an update on its website. >> Read More
Article rating: No rating

Montana Ag Leaders Praise Farm Bill Passage

12/13/2018 9:05:00 AM
America’s farmers and ranchers are about to get an early Christmas present-a new farm bill.  >> Read More
Article rating: No rating

MT Stockgrowers Host 134th Annual Convention in Billings

12/12/2018 8:42:00 PM
This week the Montana Stockgrowers Association (MSGA) is celebrating 134 years of serving the state’s ranchers at their Annual Convention & Trade Show. This year’s meetings at the Northern Hotel and DoubleTree Hotel in Billings will feature a trade show, educational workshops, and policy meetings. >> Read More
Article rating: No rating
RSS

Find Articles by Date

«December 2018»
MonTueWedThuFriSatSun
2
589
10141516
181920212223
24252627282930
31123456