7 ZZ BULLETIN 523 OCTOBER 1980 7 AGRICULTURAL EXPEPI NT STATION AUBURN UNI RSITY GALE A. BUCHANAN, U1 TOR AUBURN UNIVERS ALABAMA FOREWORD This bulletin is a part of Alabama's contribution to a current Southern Regional project entitled "Alternative Structures for Increasing Efficiency in Inter- and Intra-Regional Grain Marketing Systems" which was initiated in 1975 and will end in 1980. It is also part of a larger national project in which Alabama is a participant. Other agencies cooperating in the overall project are the Alabama Grain Dealers Association, the Corps of Engineers, the Tennessee Valley Authority, and the experiment stations of the 48 contiguous United States. While the data were collected originally to satisfy a regional research effort, it was felt that they would be useful analyzed separately for the State of Alabama for the use of Alabama grain dealers, grain users, and others in predicting changes which may occur in the grain industry of Alabama in order to facilitate planning. Appreciation is expressed to the Alabama grain, feed, processing, and integrated poultry and livestock firms who supplied much of the data contained in this bulletin. SUMMARY The main objectives of this study were to determine quantities and establish flow patterns of grain produced and handled within Alabama and imported into and exported from Alabama in 1977. These flow patterns were then related to types of firms, modes of transportation, and time periods. This information was then compared with previous studies in 1970 and 1964. For this study, grain marketing firms were classified as terminal elevators, export elevators, country elevators, feed manufacturers, soybean processors, flour mills, dry corn millers, and integrated poultry and livestock firms. There were 195 grain and feed handling and processing firms in Alabama in 1977, a net decrease of 52 firms since 1970. Feed manufacturers, however, accounted for only 100 of the total firms in 1977, a decrease of 82 from the 182 in 1970 and a decrease of 80 from the 180 in 1964. Country elevators showed the greatest increase from 10 in 1964 to 26 in 1970 to 51 in 1977. No change, or relatively minor changes, were noted in the number of other types of grain firms. Grain marketing firms in Alabama had an estimated bulk grain storage capacity of 33,123,000 bushels in 1977 not counting integrated poultry and livestock. This was an increase from 19,273,000 bushels in 1970 and 16,637,000 bushels in 1965. Storage capacity of country elevators showed the greatest percent change, increasing from 2,768,000 bushels in 1970 to 7,869,000 in 1977. More than 219 million bushels of grains were received by Alabama grain marketing firms in 1977. About 63 percent of this total was received from out-of-state sources, nearly 20 percent was received from other elevators within the State, and the remaining 17 percent received from farmers. The 1977 total was an increase of more than 37 percent since 1970. Corn was the most important grain received, accounting for more than 50 percent of the total in 1977. Illinois continued to be Alabama's most important source of imported grain in 1977. Nearly 41 percent of the out-of-state grain, mostly corn, came from Illinois, while Indiana was second with nearly 22 percent. Another 23 percent came from 12 Southern States. Rail transportation was the most important method of receiving grain by Alabama grain marketing firms in 1977, accounting for nearly 41 percent of grain received. Trucks accounted for more than 34 percent and water accounted for the remaining 25 percent. Total grain shipments from Alabama grain marketing firms in 1977 amounted to 102,567,000 bushels. A total of 12,731,000 bushels was shipped out-of-state in the U.S., overseas exports accounted for 45,426,000 bushels, and 44,410,000 bushels were shipped to local receivers and other firms within the State. In comparison, total grain shipments in 1970 were 70,729,000 bushels. Net grain imports into Alabama were 79,596,000 bushels in 1977 compared with 70,703,000 in 1970. Corn remained the most important net grain import in 1977 accounting for 73,678,000 bushels of the 79,596,000 net import. Soybeans were the only grain with a net export for 1977. LIST OF TABLES Page 1. Number of Firms Sampled, by Type of Firm and Volume, Alabama, 1977 ................................................ 9 2. Integrated Poultry and Livestock Firms, by Volume and Area, 12 Alabama, 1977 .............................................. 3. Feed Manufacturers, by Volume and Area, Alabama, 1977 ................................................... 12 4. Country Elevators, by Volume of Grain and Area, Alabama, 1977 ....................................................... 12 5. Terminal and River Elevators, by Annual Volume of Grain and 12 Area, Alabama, 1977 ....................... ....... ............ 6. Grain and Feed Handling and Processing Firms in Alabama, by 14 Type, with Change in Number and Percent, 1964, 1970, and 1977 .. 7. Percentage of Firms Handling Different Kinds of Grains, . 15 .......................... Alabam a, 1977 ..................... 8. Bulk Grain Storage Capacity, by Type of Firm, Alabama, 16 1965, 1970, and 1977 ............................................ 9. Rated Capacity of Grain Drying Facilities of Firms Interviewed, by 17 Type of Firm and Type of Dryer, Alabama, 1977................... 10. Maximum Volume of Grain that Firms Interviewed were Capable of Receiving by Trucks and Semi-Trailers in 24 Hours, by Type of Firm, 18 Alabama, 1977 .................................................. 11. Maximum Volume of Grain that Firms Interviewed were Capable of Receiving by Covered Hopper Cars in 24 Hours, by Type of Firm, 19 Alabama, 1977 ................................................ 12. Maximum Volume of Grain that Firms Interviewed were Capable of Receiving by Barges in 24 Hours, by Type of Firm, Alabama, 19 1977 ........................... ................................ 13. Maximum Volume of Grain that Firms Interviewed were Capable of Shipping by Trucks and Semi-Trailers in 24 Hours, by Type of Firm, 20 Alabama,1977 ................................................. 14. Maximum Volume of Grain that Firms Interviewed were Capable of Shipping by Covered Hopper Cars in 24 Hours, by Type of Firm, Alabama, 1977 ............................................... 20 15. Maximum Volume of Grain that Firms Interviewed were Capable of Shipping by Barges in 24 Hours, by Type of Firm, Alabama, 1977 . 16. Number and Percent of Firms Interviewed that were Capable of Receiving and Shipping Grain by Various Transportation Modes, by Type of Firm, Alabama, 1977.................................... 17. Percent of Grain Receipts by Rail, Truck, and Barge Inspected at Origin and Destination for Firms Answering Questions, ................ Alabam a, 1977 ................................. 18. Grain Received, by Kind of Grain and Origin, Alabama, ...................................................... 1977. 19. Grain Received, by Kind of Grain and Area of State, Alabama, ...................................................... 1977.. 20. Comparison Between Intrastate and Interstate Grain Receipts, ............... ...... Alabama, 1970 and 1977.................. 21. Grain Received, by Kind of Grain and Type of Firm, Alabama, ................... ................ 1977.................... 22. Grain Received, by Kind of Grain and Month of Receipt, Alabama, 1977 ....................................................... 23. Grain Received, by Kind of Grain and Mode of Transportation, ............................ Alabama, 1977 ................... 24. Grain Received from Farmers by Truck, by Kind of Grain and by ........................ Distance, Alabama, 1977 ................ 25. Grain Received from Other Elevators by Truck, by Kind of Grain and by Distance, Alabama, 1977 ................................. 26. Grain Shipments, by Kind of Grain and Destination, Alabama, ................................ 1977....................... 27. Grain Shipments, by Kind of Grain and Area of Origin, Alabama, ................................................. 1977...... 28. Grain Shipments to Points Out of State, by Kind of Grain and Area of Destinationa, Alabama, 1977 .................................. 29. Grain Shipments, by Kind of Grain and Type of Firm, Alabama, ...................................................... 1970. 30. Grain Shipments, by Kind of Grain and Month of Shipment, Alabama, 1977 ................................................. 31. Grain Shipments, by Kind of Grain and Mode of Transportation, Alabama, 1977 ................................................. 32. Grain Shipments to Farmers by Truck, by Kind of Grain, and by Distance, Alabama, 1977 ......................................... 33. Grain Shipments to Elevators by Truck, by Kind of Grain, and by Distance, Alabama, 1977 ........................................ 34. Net Grain Imports, by Kind of Grain, Alabama, 1977 .......... LIST OF FIGURES 21 21 22 24 27 27 29 31 32 32 33 34 34 36 38 39 40 41 41 42 Page 1. Location of Grain and Feed Handling and Processing Firms in 11 Alabama in 1977................................................. 25 2. Corn Received from Outside of Alabama, 1977 ................ .25 3. Soybeans Received from Outside of Alabama, 1977 ........... 26 4. Wheat Received from Outside of Alabama, 1977 .............. 5. Combined Totals of Oats, Rye, and Grain Sorghum Received from 26 Outside of Alabama, 1977 ...................................... CONTENTS Page FOREWORD................................ SUMMARY ........................................... LIST OF TABLES .............................. LIST OF FIGURES ..................................... INTRODUCTION THE PROBLEM .. O BJECTIVES ........ M ETHOD ()F STUDYr ... ............................. ............................ .................. ....... ........ .......... ..... .. ....... 2 3 4 5 7 7 8 8 .................................. CHARACTERISTICS OF GRAIN AND FEED HANDLING AND PROCESSING FIRMS IN ALABAMA .................... 10 Number and Location........................... Type of Firm and Function ....................... Kinds of Grain Handled.......................... Storage Capacity............................... Drying Facilities ................................ Receiving and Shipping Capacity .................. Sampling and Inspection Procedure ................ GRAIN MOVEMENTS ..... ................ ........... 10 13 13 13 16 18 22 22 Grain Received ................................. 23 Grain Received by Area of Origin ................. 27 Grain Received by Type of Firm .................. 28 Grain Received by Kind of Grain and by Month .... 30 Grain Received by Mode of Transportation ......... .32 Grain Received by Truck by Distance .............. 32 Shipments ...................................... 33 Shipments by Area of Destination.................. 35 Shipments by Type of Firm ....................... 35 Shipments by Kind of Grain and by Month ......... 37 Shipments by Mode of Transportation ............. .40 Shipments by Truck by Distance .................. 40 Net Grain Imports.............................. 41 LITERATURE CITED ................................... 42 APPENDIX-GLOSSARY OF TERMS .......................... 43 FIRST PRINTING 3M, OCTOBER 1980 Information contained herein is available to all without regard to race, color, sex, or national origin. GRAIN FIRMS and GRAIN MOVEMENTS in ALABAMA in 1977 LEO M. HEADLEY and JAMES L. STALLINGS 1 INTRODUCTION INFORMATION contained in this publication is the result of the most recent of a series of grain marketing projects initiated in the early 1950's. During this period, flow patterns and grain movements have been studied periodically in Alabama and other Southeastern States under regional projects. In 1977, for the first time, this research was combined into a national project which included three regional projects and several individual states. The Corps of Engineers provided funds for coverage of all the 48 contiguous United States not included in the three regional projects, and expects to utilize data from these studies to plan for projects such as the Tennessee-Tombigbee River Waterway which is now under construction. The year 1977 chosen for the study was not normal for Alabama in characterizing grain movements, especially for corn. However, choice of this year was dictated by this study being part of a larger regional and national project. The main problem was with the corn crop. Acres of yellow corn harvested for grain in Alabama in 1977 was 375,000 compared with a 1976 acreage of 800,000 and a 1975 acreage of 660,000. Yield of corn was 29 bushels per acre in 1977 compared with 60 and 50 bushels per acre, respectively, in 1976 and 1975. This acreage and yield resulted in a production in Alabama in 1977 of only 10.9 million bushels compared with 48 and 33 million bushels in 1976 and 1975, respectively. THE PROBLEM Alabama continues to be a feed grain deficit state and is heavily dependent upon feed grain surplus states for needed grain, espe'Research Assistant and Associate Professor, respectively, Department of Agricultural Economics and Rural Sociology. 8 ALABAMA AGRICULTURAL EXPERIMENT STATION cially corn. Any significant change in feed grain availability from other states, or in methods used to transport grains to the State, would have a serious impact upon Alabama's agricultural economy, since some of Alabama's leading agricultural enterprises are grain-consuming poultry and livestock. Large grain firms inAlabama need to know present and future flow patterns and modes of transportation used in order to facilitate planning. For instance, it is anticipated, after completion of the Tennessee-Tombigbee River Waterway, that water transportation may play a greater role in imports of feed grains into West Alabama, as grain-using enterprises develop, and in shipments of grains in general to the export elevator at Mobile, especially soybeans which are surplus for Alabama. If Alabama continues to increase its feedgrain imports, as it has in the past, and increase its surplus of soybeans, as expected, studies such as this can be used to predict changes in facilities needed and to prescribe policy actions. Along with this study, information is needed concerning the projected grain production-utilization balance for future years in order to enable grain handling firms to predict future adjustments in the market structure of the grain industry in Alabama. This latter research was recently completed for Alabama by Bedri (1). In Bedri's study, production, and utilization of feed grains in Alabama were determined for 1977 and projected for 1985, 1990, and 2000. OBJECTIVES The general objectives of this study were to determine quantities and establish flow patterns of grains produced and handled in Alabama and imported into and exported from Alabama in 1977. Specific objectives were: 1. To determine present production-utilization balances for different grains in Alabama. 2. To identify marketing facilities and flows of grains. 3. To determine quantities of grains received by grain firms in Alabama by different modes of transportation and time periods. 4. To compare trends in different aspects of grain marketing in Alabama in 1977 utilizing similar 1964 and 1970 surveys. METHOD OF STUDY Analyses of the 1977 grain movements were based on data collected from a survey of 74 grain and feed handling and processing firms in Alabama. Data were collected on whole, unprocessed GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 9 grains only. An up-to-date list of grain handling firms and their capacities and production in Alabama was obtained by mailing letters to all firms whose name appeared in the June, 1977, Directory of Grain Handling and Processing Firms in Alabama and to all County Extension Chairpersons for an update of this directory (3). The survey was taken on the basis of a stratified random sample. Country elevators were classified according to total grain received in 1977, based on a preliminary mail questionnaire designed for compiling an updated directory and telephone conversations with firm representatives not responding to the mail questionnaires. Firms were arrayed from high to low based on total grain received. A 100 percent sample of firms receiving over 50 percent of the grain was taken, as agreed to under the regional project rules. A 25 percent sample of the remaining firms was taken, table 1. Feed manufacturers were arrayed by total feed produced. The eight largest firms which produced more than 90 percent of the feed in the State were sampled. A 10 percent sample of the remaining firms was taken. Integrated poultry and livestock firms were combined and arrayed on the basis of tons of feed produced from largest to smallest. The three largest firms were enumerated as they accounted for over 50 percent of the total feed produced. The remaining firms were sampled at the rate of 50 percent. TABLE 1. NUMBER OF FIRMS SAMPLED, BY TYPE OF FIRM AND VOLUME, ALABAMA, 1977" Type of firm Country elevators Number in Alabama Number in sample 11 11 100% sample (over 50% of volume) ................ 11 . 40 25% sam ple ........ ...... .................... Feed manufacturers 8 8 100% sample (over 90% of volume) ................ 9 92 10% sam ple .................................... Integrated poultry and livestock firms 3 3 100% sample (over 50% of volume) ............... 13 22 50% sam ple ..................................... Other firms (terminal elevators, river elevators, port elevator, and 19 19 processors .................................... 74 195 .. ........... Total.................. ......... aNumbers in this table do not always agree with subsequent tables because classification of some firms was changed after enumeration. 10 ALABAMA AGRICULTURAL EXPERIMENT STATION In addition, all terminal elevators, processors (soybean, corn, and flour), river elevators, and the one port elevator were surveyed. Data for the study were collected by use of questionnaires and personal interviews with officials of the firms, except in two cases where information was refused and was estimated by persons familiar with the operation and from past studies. Data were collected for unprocessed grains only for the calendar year 1977. Interviews were conducted with managers, bookkeepers, grain buyers, and other personnel familiar with the firm's grain flow. The grains studied were corn, soybeans, oats, wheat, grain sorghum, and rye. Information was obtained on shipments and receipts of grains; quantities handled; and areas of origin and destination, by months, and methods of transportation. Also, data were obtained on purchasing methods, transportation facilities, drying facilities, marketing services performed, and storage capacities. Data were expanded from the sampled segments of different firms to yield State totals for Alabama. Alabama was divided into three regions for the purpose of contributing data to a regional and a national research project, two general regions and the port of Mobile, figure 1. These areas were chosen for these projects to reflect differences in marketing, utilization, and inter- and intrastate grain flows. As one was an export elevator, it was felt necessary to separate its activities from those representing grain production and utilization for the State. CHARACTERISTICS OF GRAIN AND FEED HANDLING AND PROCESSING FIRMS IN ALABAMA Number and Location The greatest concentration of firms handling raw grain in Alabama was located in the northeast part of the State. Other concentrations were located in the Mobile area and in southeast Alabama, figure 1. Distribution of firms throughout the State varied according to type and size of firm. Seventy-two percent of the integrated poultry and livestock firms were located in north Alabama including the 11 largest firms, table 2. Seven of the eight largest feed mills were located in north Alabama, while smaller feed mills were distributed throughout the State, table 3. The concentration of large feed firms in the northern part of the State is a result of the heavy concentration of poultry production in this area. GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA _ _ _ _ _ _ I I I_ _ _ _ _ _ _ _ _~ _ _ _ _ I_ _ _ _ 11 NORTH ALABAMA SOUTH ALABAMA · So G PORT ELEVATOR AT MOBILE oFeed manufacturers o} Terminal and river elevators Country elevators Soybean processors, corn millers, flour mills A Integrated poultry and livestock firms FIG. 1. Location of grain and feed handling and processing firms in Alabama in 1977. Ten of the 11 largest country elevators were located in south Alabama, table 4. A contributing factor to this is a heavy concentration of soybean production in south Alabama. Four of the six largest terminal and river elevators are located in north Alabama, table 5. A large poultry industry in this area, which requires large quantities of feed grains, results in the need for these large elevators for bringing in grains from the Corn Belt. 12 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 2. INTEGRATED POULTRY AND LIVESTOCK FIRMS, BY VOLUME AND AREA, ALABAMA, 1977 Annual volume feed produced Over 100,000 tons ............. Under 100,000 tons ............ Total ....................... South Alabama North Alabama 0 7 7 11 7 18 State 11 14 25 TABLE 3. FEED MANUFACTURERS, BY VOLUME AND AREA, ALABAMA, 1977 Annual volume feed produced Over 30,000 tons .............. Under 30,000 tons ............. Total ............... ........ South Alabama North Alabama 50 51 7 42 49 State 8 92 100 Ten of the eleven largest country elevators were located in Area 07, south Alabama, table 4. A contributing factor to this is a heavy concentration of soybean production in south Alabama. TABLE 4. COUNTRY ELEVATORS BY VOLUME OF GRAIN AND AREA, ALABAMA, 1977 Annual volume More than 800,000 bu. ......... 800,000 - 250,000 bu. .......... Less than 250,000 bu. .......... Total........................ South Alabama North Alabama 10 14 5 29 1 11 10 22 State 11 25 15 51 TABLE 5. TERMINAL AND RIVER ELEVATORS, BY ANNUAL VOLUME OF GRAIN AND AREA, ALABAMA, 1977 Annual volume More than 2,000,000 bu ....... Less than 2,000,000 bu ........ Total....................... South Alabama North Alabama 2 6 8 4 1 5 State 6 7 13 However, some of the river elevators in this category exist primarily to collect soybeans for large grain companies. Terminal elevators and river elevators were combined in analysis for two reasons. First, there was a problem of disclosure if reported separately; and, secondly, they are similar in that most of the river elevators are part of larger organizations which are, in total, the equivalent in size and function of terminal elevators. Alabama's two soybean processors are located in north Alabama, and the one port elevator is located in the southern part of the State. The larger of the two corn millers is located in north Alabama. North Alabama also contains the one flour mill. GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 13 Type of Firm and Function Alabama's grain firms in 1977 were more diversified than those in the Midwest and in some other parts of the United States. They varied considerably according to size and function performed. Some firms performed several functions making classification difficult. When this was the case, firms were classified according to their most important function. Grain marketing firms in Alabama were classified as country elevators, terminal elevators, feed mills, integrated poultry and livestock firms, soybean processors, flour mills, dry corn millers and port elevators. (See appendix for details of classification.) Firms classified as feed mills also included custom grinders and feed mixers. Data from soybean processors, flour mills, dry corn millers, and feed mills were combined to prevent possible disclosure of confidential information. Also, the port elevators and terminal elevators were combined in some cases for this purpose. The number of firms in each class in 1977, and comparisons with 1964 and 1970, are shown in table 6 (2). The largest increase from 1970 to 1977, by type of firm, was in country elevators. The number of country elevators doubled from 26 to 51. Increased demand for country elevators appeared to result from the continuing increase in soybean production. Feed mills decreased from 182 to 100 during this period. The reduction was mostly in small feed mills while the larger feed mills increased in number and in volume. There was an increase of two terminal elevators. Increased demand for imported corn in large quantities was a possible reason for this. The number of flour mills and soybean processors remained unchanged between 1970 and 1977. Kinds of Grain Handled Corn, soybeans, and wheat were the grains handled most by Alabama grain firms in 1977. Corn was the grain most handled by all firms combined. Rye was handled by only one firm and barley was not reported as handled by any Alabama grain firms in the sample. Table 7 gives a detailed analysis of the percentage of firms handling different grains. Storage Capacity Alabama grain marketing firms had a bulk storage capacity of 33,123,000 bushels in 1977, not counting integrated poultry and livestock firms, table 8. This compares with 16,637,000 bushels in 1965 and 19,273,000 bushels in 1970. TABLE 6. GRAIN AND FEED HANDLING AND PROCESSING FIRMS IN ALABAMA, BY TYPE, WITH CHANGE IN NUMBER AND PERCENT, 1964, 1970, AND 1977 Type firm Terminal and river elevators b .................. Country elevators ............................ Feed manufacturers .......................... Processors Soybean .................................. Dry corn miller ............................ Total 1964a No. 6 10 180 2 - Firms in Alabama Total Total 1970a 1977 No. No. 11 14 26 51 182 100 2 - Change from 1964 to 1970a Pct. 83.3 160.0 1.1 0.0 - Change from 1970 to 1977 Pct. 27.3 96.2 -45.1 0.0 - 2 2 Flour mills ................................. 1 1 1 0.0 0.0 Subtotal .............. .............. 199 222 170 11.6 -23.4 Integrated Poultry and livestock firms ........... N.A.c 25 25 N.A. 0.0 State total .............................. N.A.C 247 195 N.A.C -21.1 aCavanaugh, Jon David, An Analysis of the Feed Grain Market for Alabama in 1970, Unpublished M.S. Thesis, Auburn University, Auburn University, Alabama, June, 1971. bIncludes the port elevator cNot applicable (N.A.) because not enumerated a m X m z m -i -I -I 2 G) z TABLE 7. PERCENTAGE OF FIRMS HANDLING DIFFERENT KINDS OF GRAINS, ALABAMA, 1977 Firms Kind of grain Country elevators Pct. Corn........................ Terminal and river elevators Pet. 100 Port elevator Pet. 100 Integrated poultry and Feed manulivestock facturersa Pct. Pet. 100 100 Soybean processor Pet. 0 Flour mill Pet. 0 Dry corn miller Pet. 100 0 m m CA 2- 77 Grain sorghum................ Soybeans.................... Weat....................... Oats........................ Rye......................... alncludes processors 14 91 50 32 5 0 92 85 54 0 100 100 100 0 0 8 8 0 0 0 10 6 41 41 0 0 100 0 0 0 0 0 100 33 0 0 0 0 0 0 r 16 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 8. BULK GRAIN STORAGE CAPACITY, BY TYPE OF FIRM, ALABAMA, 1965, 1970, AND 1977 Type of Firm Terminal and river elevators c ............................ Country elevators ......................Feed manufacturerse.................... Total w/o integrated poultry and livestock ............... Integrated poultry and livestock ........................ Total .............................. Storage capacity (1,000 bushels) Total 1965a Total 1 97 0 b Total 1977 Bu. 3, 7 14 d 9,923 16,637 N.A. - Bu. 5,122 2,768 11,383 19,273 N.A. f Bu. 8,083 7,869 17,171 33,123 2,176 35,299 aHurst, James R. and Morris White, Feed Grain Situationin Alabama, 1953-66 and Projections to 1975, Bulletin No. 379 (Auburn, Alabama: Alabama Agricultural Experiment Station. June, 1968). bCavanaugh, Jon David, An Analysis of the Feed Grain Market for Alabama in 1970, Unpublished M.S. Thesis, Auburn University, Auburn University, Alabama, June, 1971. Includes the port elevator dIncludes country elevators in this year eIncludes processors fNot applicable (N.A.) because not enumerated Storage capacity of country elevators increased 184 percent from 1970 to 1977. This was the result of a 96 percent increase in the number of country elevators and the expansion in capacity of others. Total storage capacity of all firms, except integrated poultry and livestock, increased by 72 percent during this period. Feed manufacturers, if reported alone, would have shown a decrease; however, when reported in combination with soybean proces- sors, flour mills, and dry corn millers to avoid disclosure, they show an increase of 51 percent. A substantial increase in soybean production since 1970, plus an increased grain deficit requiring large volumes of grain to be imported into Alabama, were probably responsible for the increase in overall bulk storage capacity. Drying Facilities Few feed mills in the sample had the capability of drying grain in 1977. Only 4 of the 17 feed manufacturers surveyed possessed drying equipment, table 9. However, all of the terminal elevators surveyed possessed grain drying equipment, eight of which had two or more dryers. Twelve out of 22 country elevators surveyed had dryers, two possessed two dryers each. Only three of the inte- z CA z TABLE 9. RATED CAPACITY OF GRAIN DRYING FACILITIES OF FIRMS INTERVIEWED, BY TYPE OF FIRM AND TYPE OF DRYER, ALABAMA, 1977 Type of firm Batch Type dryer Continuous flow No.a Bin Total No.a No.a Capacity No.a Capacityb Feed manufacturers ........... 0 4 1,500 Terminal elevators..............3 1,750 10 26,100 Country elevators.............. 2 900 11 13,000 Integrated poultry and livestock................ 2 1,200 3 3,500 Port elevator................... 1 5,000 0 Soybean processor.............. 0 4 31,000 Dry corn miller................ 0 0 Flour miller................... 0 0 Total..................... 8 8,850 22 75,100 aNumber occurring in sample- not expanded to represent State totals bBushels per hour at 5 points of moisture Capacityb 1,000 0 0 1 0 0 0 0 0 1 Capacity 1,500 27,600 14,900 4,700 5,000 31,000 84,700 0 m m z -z ro 4 13 14 5 1 4 0 0 41 1,000 18 ALABAMA AGRICULTURAL EXPERIMENT STATION grated poultry and livestock firms out of 16 possessed drying equipment. However, two of those possessed two dryers each. A total drying capacity of 84,700 bushels per hour at five points of moisture was reported by the firms interviewed. No attempt was made to expand these data to represent State totals because of the small numbers by some categories. Receiving and Shipping Capacity Alabama grain marketing firms' capacity to ship and receive grain in a 24-hour period is discussed in this section. Results indicate that, of the firms interviewed and answering the questionnaire, terminal elevators were generally best equipped to receive and ship grain. Also, grain handling firms were generally able to receive more grain in a 24-hour period than they were able to ship in 24 hours by all modes of transportation. This was expected since Alabama is a grain deficit state and, generally, more concerned with receiving than shipping grain. Receiving by truck and semi-trailers. One hundred percent of the firms responding were capable of receiving grains by truck and semi-trailer, table 10. Receiving by rail. Ten of the 14 terminal elevators responding were capable of receiving by rail, table 11. Thirteen of 16 integrated poultry and livestock firms interviewed reported capacity to receive by rail. Results for country elevators and feed manufacturers were 10 out of 22 and 9 out of 17, respectively. TABLE 10. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF RECEIVING BY TRUCK AND SEMI-TRAILERS IN 24 HOURS, BY TYPE OF FIRM, ALABAMA, 1977 Categories of maximum amounts possible in 24 hours Terminal elevatorsa Country elevators Integrated Feed manu- poultry and facturersb livestock No. Pct. No. Pct. Bushels 7.1 3 13.6 Under 40,000................... 1 1 7.1 6 27.3 40,001 - 80,000 ................. 6 27.3 80,001 - 120,000 ................ 3 21.4 1 7.1 4 18.2 120,001- 160,000 ................ 4.5 6 42.9 1 160,001- 200,000 ................ 2 9.1 2 14.4 200,001 - 300,000................ 0 0 0 300,001 - 400,000................. 0 0 0 0 0 400,001 - 500,000................. Total capable 14 100.0 22 100.0 of receiving ................. Total not capable of receiving ................... 0 0 alncludes the port elevator and river elevators blncludes processors No. 11 3 1 1 1 0 0 0 17 0 Pct. 64.7 17.6 5.9 5.9 5.9 0 0 0 100.0 No. 4 6 5 0 0 1 0 0 16 0 Pct. 25.0 37.5 31.3 0 0 6.2 0 0 100.0 GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA TABLE 11. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF RECEIVING BY COVERED HOPPER CARS IN 24 HOURS, BY TYPE OF FIRM, ALABAMA, 1977 19 Categories of maximum amounts possible in 24 hours Bushels Terminal elevatorsa No. Pct. Country elevators No. Pct. 20.0 50.0 0 20.0 10.0 0 0 0 100.0 Integrated Feed manu- poultry and livestock facturersb No. 4 3 1 0 0 1 0 0 9 8 Pct. 44.5 33.3 11.1 0 0 11.1 0 0 100.0 No. 4 4 4 0 0 1 0 0 13 3 Pct. 30.8 30.8 30.8 0 0 7.6 0 0 100.0 2 2 20.0 Under 40,000 .................... 1 10.0 5 40,001 - 80,000 .................. 0 4 40.0 80,001 - 120,000 ................. 1 10.0 2 120,001 - 160,000 ................. 0 1 0 160,001- 200,000 ................. 0 0 0 200,001 - 300,000 ................. 10.0 0 1 300,001 - 400,000 ................. 0 10.0 1 400,001 - 500,000 ................. Total capable 10 100.0 10 of receiving................. Total not capable of 12 4 receiving .................... alncludes the port elevator and river elevators blncludes processors Receiving by barge. The percentage of firms capable of receiving by barge was not as high as for the other modes of transportation. None of the country elevators responding could receive by barge, table 12. Only five of 14 terminal elevators, two of 17 feed manufacturers, and three of 16 integrated poultry and livestock firms responding were capable of receiving by barge. TABLE 12. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF RECEIVING BY BARGES IN 24 HOURS, BY TYPE OF FIRM, ALABAMA, 1977 Categories of maximum amounts possible in 24 hours Bushels Integrated Country Feed manu- poultry and Terminal livestock facturers elevatorsa elevators Pct. Pct. No. No. Pct. No. Pct. No. 0 0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 2 15 0 0 0 0 50.0 50.0 0 0 100.0 0 0 1 0 1 1 0 0 3 13 0 0 33.3 0 33.3 33.4 0 0 100.0 0 Under 40,000.................... 0 20.0 1 40,001 - 80,000 .................. 1 20.0 80,001 - 120,000 ................. 1 20.0 120,001- 160,000 ................. 2 40.0 160,001 - 200,000 ................. 0 0 200,001 - 300,000 ................. 0 0 300,001 - 400,000 ................. 0 0 400,001 - 500,000 ................. Total capable 5 100.0 of receiving .............. Total not capable 9 of receiving ................. alncludes the port elevator and river elevators blncludes processors 20 20 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 13. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF SHIPPING BY TRUCK AND SEMI-TRAILERS IN 24 HOURS, BY TYPE OF FIRM, ALABAMA, 1977 Categories of maximum amounts possible in 24 hours Bushels Terminal elevatorsa No. Pet. Country elevators No. Pct. 15.8 31.6 21.0 10.5 10.5 5.3 5.3 0 100.0 Integrated Feed manu- poultry and livestock facturersb No. 3 1 2 0 0 0 0 0 6 Pct. 50.0 16.7 33.3 0 0 0 0 0 100.0 No. 2 1 0 0 0 0 0 0 3 Pct. 66.7 33.3 0 0 0 0 0 0 100.0 7.7 3 Under 40,000...................1 6 38.5 5 40,001 - 80,000 .................. 30.7 4 4 80,001 - 120,000 ................. 7.7 2 120,001-160,000.................1 7.7 2 160,001-200,000.................1 1 1 7.7 200,001-300,000 ................. 1 0 300,001-400,000.................0 0 0 0 400,001 -500,000 ................. Total capable of shipping.................13 100.0 19 Total not capable 3 1 of shipping .................. river elevators alncludes the port elevator and bIncludes processors 11 13 Shipping by truck and semi-trailer. Thirteen of 14 terminal elevators and 19 of 22 country elevators responding were capable six of 17 feed of shipping by truck and semi-trailer, table of 16 integrated poultry and livestock manufacturers and three firms reported capability of shipping by truck and semi-trailer. Shipping by rail. The percentage of firms responding capable of shipping grain by rail was low, table 14. Only four of 14 terminal elevators, nine of 22 country elevators, one of 17 feed 13. Only TABLE 14. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF HOURS, BY TYPE OF FIRM, SHIPPING BY COVERED HOPPER CARS IN ALABAMA, 1977 2-f Categories of maximum amounts possible in 24 hours Bushels Terminal elevatorsa No. Pct. 0 50.0 0 Integrated Country Feed manu- poultry and livestock facturersb elevators No. Pct. No. Pet. No. Pet. 2 3 3 1 120,001 - 160,000 ................. 1 160001 -200,000 ................. 0 200,001 -300,000 ................. 0 300,001 -400,000 ................. 0 400,001 -500,000 ................. Total capable of shipping................. 4 Total not capable of shipping................. 10 blncludes processors 80,001 -120,000 Under 40,000.................... 0 40,001 - 80,000.................. 2 ................. 0 22.3 33.3 33.3 0 1 0 0 100.0 0 0 0 0 0 0 0 25.0 25.0 0 0 0 100.0 1 0 0 0 0 9 13 11.1 0 0 0 0 100.0 0 0 0 0 0 1 16 0 0 0 0 0 100.0 0 1 0 0 0 1 15 0 100.0 0 0 0 100.0 aIncludes the port elevator and river elevators GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 21 TABLE 15. MAXIMUM VOLUME OF GRAIN THAT FIRMS INTERVIEWED WERE CAPABLE OF SHIPPING BY BARGES IN 24 HOURS, BY TYPE OF FIRM, ALABAMA, 1977 Categories of maximum amounts possible in 24 hours Bushels Under 40,000 .................... 40,001- 80,000 .................. 80,001- 120,000 ................. 120,001- 160,000 ................ 160,001 -200,000 ................. 200,001- 300,000 ................. Total capable of shipping ................. Total not capable of shipping .................. Integrated Terminal Country Feed manu- poultry and elevatorsa elevators facturersb livestock No. Pct. No. Pct. No. Pct. No. Pct. 0 1 3 1 0 7 12 2 0 8.3 25.0 8.3 0 58.4 100.0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 0 0 0 17 0 0 0 0 0 0 0 0 0 0 0 0 0 16 0 0 0 0 0 0 alIncludes the port elevator and river elevators blncludes processors manufacturers, and one of 16 integrated poultry and livestock firms reported the capability to ship by rail. Shipping by barge. Twelve of the 14 terminal and river elevators responding reported the capability to ship by barge, table 15. No other type firm responding reported the capability of shipping by barge. Modes of transportation summarized. Transportation capabilities of grain handling firms interviewed and responding in Alabama in 1977 are summarized in table 16. No attempt is made to TABLE 16. NUMBER AND PERCENT OF FIRMS INTERVIEWED THAT WERE CAPABLE OF RECEIVING AND SHIPPING GRAIN BY VARIOUS TRANSPORTATION MODES, BY TYPE OF FIRM, ALABAMA, 1977 Firms reporting Transportation capabilities Terminal elevatorsa No. Pct. Integrated Country Feed manu- poultry and elevators facturers livestock No. Pct. No. Pct. No. Pct. 0 10 10 22 0 0 9 14 15 0 0 45.5 45.5 100.0 0 0 40.9 63.6 68.2 0 3 10 7 18 2 0 1 4 6 16.7 55.6 38.9 100.0 11.1 0 5.6 22.2 33.3 0 1 13 8 16 3 0 1 2 3 0 6.2 81.2 50.0 100.0 18.8 0 6.2 12.5 18.8 0 Able to receive grain 1 7.1 In boxcars only................... 10 71.4 In covered hopper cars ........... By rail in 5 carlots ............... 9 64.3 By truck......................... 14 100.0 5 35.7 By barge ....................... Able to ship grain In boxcars only................... 0 0 .7 50.0 In covered hopper cars ........... By rail in 5 carlots ................ 9 64.3 13 92.9 By truck......................... By barge ........................ 13 92.9 alncludes port elevator and river elevators blncludes processors 22 ALABAMA AGRICULTURAL EXPERIMENT STATION expand these data for the State. Terminal elevators were the best equipped overall for receiving and shipping grain, followed by country elevators. Feed manufacturers were well equipped for receiving grain; however, only one firm could ship by covered hopper car and only six firms could ship grain by truck. Sampling and Inspection Procedure In 1977, the mechanical diverter was used very little for sampling grain in Alabama. Only one each of the country elevators, feed manufacturers, and terminal elevators, plus two integrated poultry and livestock firms reported the use of a mechanical diverter. The probe was usually used for sampling grain. Questions were asked to determine percentages of grain that was inspected at the origin, destination, and en route. Firms were generally unable to provide accurate information on en route inspections. Table 17 presents results of origin and destination inspections. GRAIN MOVEMENTS The overall objective of this study was to determine quantities and to establish flow patterns of grain produced in Alabama, received from outside Alabama, shipped to other states, and exported overseas from Alabama in 1977. TABLE 17. PERCENT OF GRAIN RECEIPTS BY RAIL, TRUCK, AND B RGE INSPECTED AT ORIGIN AND DESTINATION FOR FIRMS ANSWERING QUESTION, ALABAMA, 1977 a At origin At destination Country elevators Rail .................................... 98 87 Truck ................................... 70 88 Barge .................................. 100 20 Terminal elevatorsb R ail .................................... 95 75 Truck .................................. 62 100 Barge .................................. 100 67 Feed manufacturers Rail .................................... 100 100 Truck .................................. 72 90 Barge .................................. 98 100 Integrated poultry and livestock R ail .................................... 99 82 Truck .................................. 92 92 Barge .................................. 100 82 apercentages are average for firms that reported receipts by each mode of transportation blncludes port elevator Includes processors GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 23 Grain Received There were more than 219 million bushels of grain received, both intrastate and interstate, by Alabama grain and feed marketing firms in 1977, table 18. This was an increase of 37.7 percent since 1970 (2). Corn remained the most important grain received, accounting for 111,450,000 bushels, or more than 50 percent of total grain received. Figures 2 through 5 show flows of grains into Alabama from other states. Soybeans were the second most important grain in Alabama in 1977 in terms of volume received. Receipts amounted to 88,898,000 bushels or 40.6 percent of grain received in 1977, an increase since 1970 of 152.7 percent when only 35,173,000 bushels were received (2). Only small amounts of wheat, grain sorghum, oats, and rye were received by Alabama firms in 1977. Over 57 percent of all grains imported into Alabama in 1977 were received by firms in north Alabama, table 19. This was expected since the soybean processors, larger feed manufacturers, and the larger integrated poultry firms were located in north Alabama. The above percentage compares with the 67.8 percent received by firms in north Alabama in 1970 (2). South Alabama has increased its share partially as a result of more rapid increase in soybean production and exports from the Port of Mobile. Rye was the only grain received in greater quantity in south Alabama than in north Alabama but this was only a small amount. All other grains were received in greater quantities in north Alabama. Corn receipts, both intrastate and interstate, increased between 1970 and 1977, table 20 (2). There was an 18.7 percent increase in intrastate and a 14.8 percent increase in interstate receipts over 1970. Grain sorghum showed only a slight increase in intrastate receipts; however, an 86.2 percent decrease was shown in interstate receipts (2). This decrease was partially attributable to more farmers converting to the production of soybeans at the expense of production of grain sorghum. Soybean receipts increased more than any other grain from 1970 to 1977 showing an increase of 363 percent intrastate and 274 percent interstate, (2). Wheat increased 66 percent in interstate receipts and oats decreased 52 percent in this time period (2). TABLE 18. GRAIN RECEIVED, BY KIND OF GRAIN AND ORIGIN, ALABAMA, 1977 Kind of grain Area or origin: Corn Grain sorghum Soybeans Wheat Oats Rye Total Intrastate (1,000 bu.) Farmer.........................7,375 Elevator........................ 8,726 Within state total................ Total Southern Statesa........................ Illinois......................... Indiana........................ Missouri........................ Iowa........................... Minnesota...................... Ohio ... ........ ................ 16,101 35 32 67 64 180 - 28,526 31,548 60,074 18. 738 5.5,945 1. ,341 2:)145 329 326 10.),086 1,908 1,850 3,758 Interstate (1,000 bu.) i 735 1,296 151 561 o 0 0 38,405 42,891 81,296 Percent w 11,560 47,579 29,000 2,078 1,547 1,512 1,642 515 1,339 650 507 10 0 - 32 - 3 200 212 Total Corn Belt............. 83,789 Total Gieat Plains 32 States......................... Total interstate.............. 95,349 308 28,3,824 aSouthern States include: La., Miss., Fla., Ca., Tenn., Ky., and S.C. bGreat Plains States include: Okla., Nebr., and Kan. 2,073- 2,268 5,764 10,925 --~-------4,511 1,404 2,114 31,173 55,853 29,859 5,594 2,076 5,184 22.66 C 40.77 21.78 4.16 1.61 C I- 2,399 4,615 3.86 1.84 C m m - 101,965 74.02 3.35 100.00 72 2,337 10 137,753 z -D 2I cn GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 25 2 K BushelIs - 0-1,000,000 f 1 2,000,001-3000,000 -1000,001-2,000,000 -- 80000900,000 mmm 30,000,001-40,000,000 50,000,001-60,000,000 FIG. 2. Corn received from outside of Alabama, 1977. I1,000,001-- - - 0-1000000 --- 0 2,000,001-3000,000 4,000,001-5,000,000 5,000,001-6,000,000 2,000,000 ---- ml 10,000,001- 11,000000 FIG. 3. Soybeans received from outside of Alabama, 1977. 26 ALABAMA AGRICULTURAL EXPERIMENT STATION Bushels -0- 500,000 500,001-1,000,000M 1 1,000,001-2,000,000 2000,001-3,000,000 FIG. 4. Wheat received from outside of Alabama, 1977. Bushels -- [- - O100,001- 100,000 200,000 -- 500,001- 600,000 1,000,001- 1,500,000 FIG. 5. Combined totals of oats, rye, and grain sorghum received from outside of Alabama, 1977. GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA TABLE 19. GRAIN RECEIVED, BY KIND OF GRAIN AND AREA OF STATE, ALABAMA, 1977 27 2 Area of receipts Port South North elevator Alahama Alahama area 41 area 07 area 08 1,000 bu. 1,000 bu. 1,000 bu. Corn.........................19,471 21,429 70,550 Soyheans.....................21,509 21,564 45,825 3,215 6,430 Weat.........................5,038 Oats............................0 742 2,891 Grain sorghum................... 0 35 340 10 0 Rye........................... 0 126,036 Total.....................46,018 46,995 Percentage by 57.5 different areas ................ 21.0 21.5 Kind of grain State 1,000 bu. 111,450 88,890 14,683 3,633 375 10 Percent Pct. 50.89 40.57 6.70 1.66 .17 .01 100.00 219,049 100.00 Grain Received by Area of Origin Nearly 63 percent of all grain received originated from out-ofstate sources in 1977, table 18. Grain received from within Alabama amounted to 81,296,000 bushels of which 38,405,000 bushels were received from farmers. This grain received from farmers was 17.5 percent of the total received, an increase of 3.4 percent over 1970, (2). Corn. More than 85.5 percent of the corn received or 95,349,000 bushels, was received from sources outside Alabama, while only 6.6 percent was received from Alabama farmers in 1977, tables 18 and 20. The rest was received from other firms within Alabama. Nearly 50 percent of the corn received from out-of-state sources was received from Illinois while approximately 30 percent was received from Indiana. This compared to slightly over TABLE 20. COMPARISON BETWEEN INTRASTATE AND INTERSTATE GRAIN RECEIPTS, ALABAMA, 1970 AND 1977a 1970b____ 1977 Percent change IntraInterIntraInterIntra- Interstate state state state state state 1,000 bus. 1,XX0 bu. 1,000 bu. 1,000 bu. Pct. Pct. 95,349 18.7 14.8 Corn ........................ 13,577 83,108 16,101 60 2,224 67 308 11.7 -86.2 Grain sorghum.................. 274.3 7,694 60,074 28,824 362.8 Soyheans..................... 12,981 7,174 3,758 10,925 7.8 66.5 ~eat........................ 3,487 Oats ......................... 1,194 5,059 1,296 2,337 8.5 -52.3 0 0 0 10 0 Rye........................... 0 0 50 0 0 0 Barley........................ 30.9 31,349 105,259 81,296 137,753 159.3 Total........... alncludes the Public Grain Elevator at Mohile. the Feed Grain Market for Alabama in 1970, bCavanaugh, Jon David, An Analysis Unpublished MS. Thesis, Auhurn University, Auhurn University, Alahama, June, 1971. 'Percent change meaningless here. Kind of grain of 28 ALABAMA AGRICULTURAL EXPERIMENT STATION 54 percent received from Illinois and 17.5 percent received from Indiana in 1970, (2). Adjoining southern states plus Kentucky shipped Alabama slightly over 10 percent of the imported corn. Grain sorghum. Slightly more than 82 percent of the grain sorghum came from out-of-state sources in 1977, table 18. Illinois was the primary source of interstate grain sorghum received. In comparing out-of-state shipments in 1977 with 1970 shipments, there has been an 86.2 percent reduction in the quantity of grain sorghum received, table 20. Soybeans. More than 28 million bushels of soybeans were received from farmers in 1977, table 18. This compares with 5,554,000 bushels in 1964, and 14,498,000 bushels in 1970 (2). Tennessee was the main source of soybeans from out-of-state in 1977, accounting for 10,091,000 bushels, while Illinois was second with 5,945,000 bushels. These two states accounted for 56 percent of soybeans received interstate. Wheat. Only 1,908,000 bushels of wheat were received from Alabama farmers in 1977, table 18. In addition, interstate shipments amounted to 10,925,000 bushels with Minnesota, the leading source, accounting for 2,268,000 bushels. Oats. Oats represented less than two percent of all grains received by grain marketing firms in Alabama in 1977, table 19. Minnesota was the leading source of oats received interstate, accounting for 1,404,000 bushels or 60 percent of the total in 1977, table 18. Rye. There were no reports of local quantities of rye received from farmers in 1977 by Alabama grain firms in the sample, table 18. Only one firm reported receipts of rye from out-of-state sources. Grain Received by Type of Firm Feed manufacturers received 64,175,000 bushels of grain, or 29.3 percent of the total volume in Alabama in 1977, table 21. The port elevator at Mobile accounted for approximately 21 percent, integrated poultry and livestock firms had over 20 percent, terminal elevators had nearly 18 percent, and country elevators had about 11 percent of the 219,049,000 bushel total. The quantity compares with the 159,057,000 bushels received in 1970, an increase of 32.7 percent (2). Port elevator. Soybeans were the most important grain received by the port elevator in 1977, table 21. The 21,509,000 bushels of soybeans accounted for over 46 percent of total grains CA z Nz TABLE 21. GRAIN RECEIVED, BY KIND OF GRAIN AND TYPE OF FIRM, ALABAMA, 1977 v ''1 rCo z Type of firm Kind of grain Port elevator Terminal elevators 1,000 bu. 17,309 11,382 7,719 2,234 Country elevators 1,000 bu. 4,645 18,475 922 669 Feed manufacturersa 1,000 bu. 24,569 37,532 1,004 730 Integrated pouitry and livestock 1,000 bu. 45,456 0 0 0 1,000 bu. Corn........................... Soybeans....................... Wheat.......................... Oats............................. 0 m m z -I zo r- 19,471 21,509 5,038 0 Grain sorghum.................... Rye.............................. 0 0 0 0 25 10 340 0 10 0 Total....................... Percent...................... 46,018 21.0 38,644 17.7 24,746 11.3 64,175 29.3 45,466 20.7 'Includes processors N% CD 30 ALABAMA AGRICULTURAL EXPERIMENT STATION received. Corn was second in importance. The 19,471,00 bushels of corn comprised 42 percent of the grains received while the 5,038,000 bushels of wheat accounted for the remaining 11 percent. Terminal elevators. Corn and soybeans were the most important grains received by terminal elevators in 1977. Corn accounted for 17,309,000 bushels, or about 44.8 percent of the 38,644,000 bushels of grains received by terminal elevators, and soybeans represented 11,382,000 bushels for 29 percent of the total, table 21. Terminal elevators also received 7,719,000 bushels of wheat and 2,234,000 bushels of oats. Country elevators. More than 74 percent of the total volume of grains received by country elevators was soybeans. Corn accounted for 4,645,000 bushels of the total, or 19 percent, table 21. Country elevators also handled nearly a million bushels of wheat, 669,000 bushels of oats, and small amounts of grain sorghum and rye. Feed manufacturers. Feed manufacturers, combined with processors in Alabama, received 37,532,000 bushels of soybeans in 1977, table 21. This represented 58.4 percent of the 64,175,000 bushel total. The 24,569,000 bushels of corn received by feed manufacturers were 38 percent of the total. Smaller amounts of wheat, oats, and grain sorghum moved through feed manufacturers. Integrated poultry and livestock firms. Corn accounted for nearly 100 percent of the total 45,456,000 bushels of grains received by integrated poultry and livestock firms, table 21. Only 10,000 bushels of grain sorghum were received, which was the only other grain reported by firms in the sample. Grain Received by Kind of Grain and by Month Grain quantities received were higher in October, November, and December while receipts in other months were fairly constant, table 22. The increased quantities in these months were partially attributed to corn and soybean harvest in Alabama and elsewhere. Lack of storage in Alabama prevents peak buying of out-ofstate grain during harvest. Corn especially is imported fairly regularly throughout the year as it is used mostly by the poultry industry and integrated poultry firms which have less storage in proportion to use than country and terminal elevators. Soybeans and wheat tend to vary somewhat more in quantities received ) z TABLE 22. GRAIN RECEIVED, BY KIND OF GRAIN AND MONTH OF RECEIPT, ALABAMA, 1977 Grain z PerRye Total cent Month January ...................... February ..................... March.........................9,143 April......................... May......................... June......................... July.......................... August....................... September.................... October...................... November.................... December..................... Total.................... Corn 1,000 bu. 10,460 10,754 9,317 10,102 7,236 9,337 11,060 12,467 7,530 7,213 6,831 111,450 Soybeans 1,000 bu. 7,359 5,223 3,758 4,054 2,496 1,797 2,692 2,214 2,448 19,055 22,790 15,012 88,898 Wheat 1,000 bu. 901 895 819 1,299 2,107 2,152 1,801 1,034 1,612 410 868 785 14,683 Oats 1,000 bu. 217 212 113 290 660 319 293 378 394 245 356 156 3,633 sorghum 1,000 bu. 1,000 bu. 1,000 bu. Pct. o 28 28 28 28 28 29 33 38 29 48 29 29 375 0 0 0 0 0 0 0 0 10 0 0 0 10 18,965 17,112 13,861 14,988 15,393 11,533 14,156 14,724 16,960 27,288 31,256 22,813 219,049 8.7 7.8 6.3 6.8 7.0N 5.36.5z 6.7r m Z 7.7W 12.5 14.3 10.4D 100.0 D Lw 32 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 23. GRAIN RECEIVED, BY KIND OF GRAIN AND MODE OF TRANSPORTATION, ALABAMA, 1977a Kind of grain Corn.................. Soybeans .............. Wheat ................ Oats .................. Grain sorghum......... Rye................... Total ............. Percent ........... alncludes the port elevator Rail 1,000 bu. 57,937 27,624 2,543 547 211 10 88,872 40.6 Truck 1,000 bu. 21,653 48,966 3,534 1,006 164 0 75,323 34.4 Water 1,000 bu. 31,860 12,308 8,606 2,080 0 0 54,854 25.0 throughout the year than other grains. More than 63 percent of soybeans received were received during harvest season by country and terminal elevators, which had proportionally more storage capacity than feed firms. Nearly 38 percent of the wheat was received during the May, June, July harvest season. Grain Received by Mode of Transportation Rail transportation was the most important mode of transporting grain by Alabama feed and grain handling firms in 1977, table 23. Rail accounted for more than 40 percent, truck 34.4 percent, and water 25 percent of total grain shipments received. Rail was most important in receipts of corn followed by water and truck. Trucks were the most important mode for receiving soybeans followed by rail and water, respectively. Water was the most important mode for receiving wheat and oats followed by truck and rail, respectively. Grain Received by Truck by Distance From farmers. More than half of all grain received from farmers by truck was.transported less than 25 miles, table 24. This was expected since the cost of transportation is expensive, and farmers do not have extra time to spend delivering grain. ApproxiTABLE 24. GRAIN RECEIVED FROM FARMERS BY TRUCK, BY KIND OF GRAIN, AND BY DISTANCE, ALABAMA, 1977 Kind of grain 0-25 Distance in miles 26-50 51-100 Over 100 Corn ........................ Soybeans.................... W heat ...................... Oats ........................ Grain sorghum ............... . Rye ......................... Pct. 52.8 65.1 60.6 72.3 63.9 0 Pct. 35.9 30.4 31.1 20.2 36.1 0 Pct. 10.2 4.3 6.9 7.5 0 0 Pct. 1.1 0.2 1.4 0 0 0 GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 33 mately one-third of the grains was received from the 26-50 mile category, while decreasing amounts were received from the 50100 miles and over 100 miles classifications. As would be expected, the percentage of grain received decreased rapidly as the distance from the elevators increased. From other elevators. There was no definite relationship between distance and grain received by truck from other elevators as there was from farmers, table 25. This was because of a high concentration of large grain firms on the Tennessee River and the poultry industry located mainly in north Alabama. Over 51 percent of the corn was transported more than 100 miles, table 24. This was mostly due to shipments received by the port elevator from the Corn Belt. Slightly over 55 percent of the soybeans and 44 percent of the wheat were transported 26-50 miles. More than 66 percent of the oats was transported 50-100 miles. More than 20 percent of the oats was transported over 100 miles. Shipments During 1977, Alabama grain marketing firms shipped 102,567,000 bushels of grains, tables 26 and 27. Most of the shipments, 45,426,000 bushels or 44.3 percent, were exported overseas while 12,731,000 bushels or 12.4 percent, were shipped out-of-state. The remaining 44,410,000 bushels or 43.3 percent, were shipped to local receivers and other grain firms in Alabama. In contrast, there were only 19,025,000 bushels exported overseas in 1970 (2). The 45,426,000 bushels exported in 1977 represented more than a 138 percent increase between 1970 and 1977. In 1970, 21,713,000 bushels of grain were shipped interstate compared with 12,731,000 bushels in 1977, a 41 percent reduction. Intrastate shipments in 1970 were only 29,991,000 bushels compared with 44,410,000 bushels in 1977, an increase of over 48 percent. TABLE 25. GRAIN RECEIVED FROM OTHER ELEVATORS BY TRUCK, BY KIND OF GRAIN AND BY DISTANCE, ALABAMA, 1977a 0-25 Corn ........................ Pct. 11.7 19.3 7.9 8.7 0 0 Distance in miles 26-50 51-100 Pct. 7.1 55.3 44.0 4.4 0 0 Pct. 29.7 21.7 11.6 66.1 0 0 Over 100 Pct. 51.5 3.7 36.5 20.8 0 0 Soybeans.................... b eat ...................... Oats ........................ Grain sorghum............... Rye ......................... aIncludes port elevator 34 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 26. GRAIN SHIPMENTS, BY KIND OF GRAIN AND DESTINATION, ALABAMA, 1977 Destination Kind of grain North South Alabama Alabama Interstate a a area 07 area 08 1,000 bu. 1,000 bu. 1,000 bu. 12,412 1,844 6,974 8,783 6,735 14,884 688 403 1,664 1,416 830 473 0 0 25 0 0 10 12,731 20,380 24,030 12.4 19.9 23.4 Export Total Percent Pct. 40.0 49.7 7.6 2.7 100.0 Corn.................. Soybeans .............. Wheat ................ Oats .................. Grain sorghum......... Rye ................... Total ............. Percent ........... alIncludes farmer and grain firm shipments *Less than .1 percent 1,000 bu. 1,000 bu. 41,057 19,827 50,959 20,557 7,797 5,042 2,719 0 25 0 10 0 102,567 45,426 100 44.3 Soybeans were the most important grain shipped in Alabama accounting for 50,959,000 bushels or 49.7 percent of the total shipments in 1977, of which 20,557,000 bushels or 20.0 percent were for export. Corn accounted for 41,057,000 bushels or 40 percent of the total shipments, while wheat, oats, grain sorghum, and rye accounted for the remaining small percentage. More than 29 percent of the shipments in 1977 originated in south Alabama while over 26 percent originated in north Alabama, table 27. The port elevator at Mobile shipped the remaining 44 percent. Data revealed that a larger percent of corn was shipped from north Alabama, and a larger percent of soybeans was shipped from south Alabama. This was expected since there is a high concentration of soybean production in south Alabama and a high concentration of terminal elevators'In north Alabama that import corn and distribute it within the State. TABLE 27. GRAIN SHIPMENTS, BY KIND OF GRAIN AND AREA OF ORIGIN, ALABAMA, 1977 Area of origin of shipment Kind of grain Port elevator area 2641 1,000 buit. 19,827 20,557 5,042 0 0 0 . 45,426 44.3 South Alabama area 07 1,000 bu. 7,696 19,991 1,796 664 25 10 30,182 29.4 North Alabama area 08 1,000 bu. 13,534 10,411 959 2,055 0 0 26,959 26.3 State 1,000 bu. 41,057 50,959 7,797 2,719 25 10 102,567 100 Percent Pct. 40.0 49.7 7.6 2.7 * * 100.0 Corn ................... Soybeans ................ Wheat ................... Oats ................... Grain sorghum .......... Rye .................... Total ............... Percent ............... than .1 percent *Less GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 35 Shipments by Area of Destination An estimated 58,157,000 bushels of grains were shipped to points outside Alabama in 1977, table 28. Approximately 12,731,000 bushels were shipped to other Southeastern States and 45,426,000 bushels were exported overseas. Corn. More than 21,500,000 bushels or approximately 37.3 percent of out-of-state shipments in 1977 were corn, table 28. Alabama grain marketing firms shipped 1,844,000 bushels of corn to other Southeastern States while the remaining 19,827,000 bushels were exported overseas. Georgia was the main recipient, other than export overseas, receiving nearly 56 percent of interstate corn shipments from Alabama. Florida, Mississippi, and Tennessee also received some corn from Alabama. Soybeans. Soybeans accounted for 29,340,000 bushels, or over 50 percent, of out-of-state grain shipments in 1977, table 28. More than 20 million bushels were exported while 8,783,000 bushels went to other Southeastern States. Tennessee was the leading recipient of soybeans with 4,064,000 bushels. Soybeans were also shipped to Georgia, Mississippi, and Louisiana. Wheat. Over 88 percent of the out-of-state wheat shipment was exported, table 28. Only 678,000 bushels went to other Southeastern States. North Carolina was the leading recipient of interstate shipments, followed by Georgia, Tennessee, and Mississippi. Oats. Oats were not exported, but were shipped to more states than any other grain even though quantities were small, table 28. Georgia was the leading importer with 719,000 bushels, nearly 51 percent of the total. Florida received 374,000 bushels or 26 percent, while Mississippi, North Carolina, Tennessee, South Carolina, and Kentucky received small amounts. Grain sorghum. No firm in the sample reported shipping grain sorghum interstate in 1977, table 28. Rye. Florida was the lone recipient of a single out-of-state shipment of rye in the sample, table 28. Shipments by Type of Firm Port elevator. The Alabama State Docks export elevator was the most important shipper of grains in Alabama in 1977, table 29. More than 44 percent of the grain shipments was by this facility and virtually all of it was for export. Soybeans accounted for over 45 percent of the grain handled by the port elevator. Corn shipments accounted for nearly 44 percent, and the remaining 11 percent was wheat shipments. o, TABLE 28. GRAIN SHIPMENTS TO POINTS OUT OF STATE, BY KIND OF GRAIN AND AREA OF DESTINATION, ALABAMA, 1977 Area number and location of destination Corn Soybeans 1,000 bu. 0 0 1,998 0 0 4,064 2,378 343 8,783 20,557 29,340 Wheat 1,000 bu. 394 0 152 0 0 70 632 0 678 5,042 5,720 Oats 1,000 bu. 97 29 719 374 9 65 123 0 1,416 0 1,416 Grain sorghum 1,000 bu. 0 0 0 0 0 0 0 0 0 0 0 Rye 1,000 bu. 0 0 0 10 0 0 0 0 10 0 10 Total 1,000 bu. 491 29 3,901 965 90 4,291 2,6~92 343 12,731 45,426 58,157 Percent Pct. 0.9 6.7 1.7 C) 00 1,000 bu. 14-North Carolina............... 0 0 15-South Carolina............... 16-Georgia.................... 1,032 .591 17-Florida..................... 0 23-Kentucky.................... 92 24-Tennessee.................. 129 25-Mississippi.................. 0 31-Louisiana.................... 1,844 Subtotal.................. 19,827 9000-Export.................. 21,671 Total.................... 7.4 4.63 .6 21.9 78.1 100.0 C C *Less than .1 percent m m m -I X OI GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 37 Terminal elevators. Terminal elevators, except the port elevator, were second in importance with 30,354,000 bushels shipped, or 29.6 percent of the total in 1977, table 29. Corn was the most important grain handled by these firms accounting for 15,039,000 bushels, or nearly 50 percent of their total shipments. Soybeans accounted for 11,437,000 bushels, or approximately 38 percent. Smaller amounts of wheat and oats were handled by terminal elevators. Country elevators. Country elevators shipped 21,096,000 bushels of grains, or 20.6 percent of the total in 1977, table 29. Soybeans were the most important grain handled by country elevators, accounting for 15,457,000 bushels, or 73 percent of their total shipments. Corn accounted for 4,008,000 bushels, or nearly 19 percent of the total. Smaller shipments of wheat, oats, grain sorghum, and rye were also handled. Feed manufacturers. Feed manufacturers shipped 5,574,000 bushels of grains, which was only 5.4 percent of the total, table 29. This was mostly from firms of mixed types which were classed as feed manufacturers. Corn and soybeans were the only grains shipped with soybeans being the most important. It should be pointed out that one multipurpose firm shipped all the soybeans. Soybeans accounted for approximately 63 percent and corn accounted for the remaining 37 percent of the grain shipments by feed manufacturers. Integrated poultry and livestock. Shipments of grains by integrated poultry and livestock firms were small, table 29. This was anticipated since grain is purchased for use by the facility. Shipments by Kind of Grain and by Month October was the leading month for grain shipments with 15,867,000 bushels, or 15.5 percent of total shipments in 1977. November was second with 15,161,000 bushels, or 14.8 percent, table 30. Other months in order of importance were January with 12,145,000 bushels, February with 9,931,000 bushels, and December with 9,436,000 bushels. Shipments in other months were relatively evenly distributed except June which was the low month with 3,783,000 bushels. Large shipments of soybeans in October and November, the harvest season, resulted in these months being the leading shipment months. Shipments of wheat were slightly higher during the June and July harvest season. TABLE 29. GRAIN SHIPMENTS, BY KIND OF GRAIN AND TYPE OF FIRM, ALABAMA, 1970 Type of firm Kind of grain Port elevator Terminal elevators 1,000 bu. 15,039 11,437 1,792 2,086 0 0 30,354 29.6 Country elevators 1,000 bu. 4,008 15,457 963 633 25I 10 21,096 20.6 Feed manufacturers 1,000 bu. 2,074 3,500 0 0 0 0 5,574 5.4 Integrated poultry and livestock 1,000 bu. 109 8 0 0 0 0 117 . AII- r 1,000 bu. Corn.............................. Soybeans.......................... Wheat............................. Oats................................ Grain sorghum........................ Rye ................................ Total.......................... Percent.......................... 19,827 20,557 5,042 0 0 0 45,426 44.3 G) C C m x m m z z L) D C, z TABLE 30. CHAIN SHIPMENTS, BY KIND OF GRAIN AND MONTH OF SHIPMENT, ALABAMA, 1977 G) Rye 1,000 bu. 0 0 0 Month January............ February.......... March............3,196 Corn 1,000 bu. 5,647 5,543 Soybeans 1,000 bu. 5,931 4,013 2,591 April.............. May .............. June.............. July .............. August............ September........ October........... November......... Dece~mber......... Total......... 1,500 3,244 5,030 2,884 2,045 1,692 1,834 41,057 4,645 3,797 2,554 638 Wheat 1,000 bu. 392 228 229 Oats 1,000 bu. 175 147 165 Grain sorghum 1,000 bu. 0 0 0 Total 1,000 bu. 12,145 9,931 6,144 Percent Pct. 11.8 9.7 6.0 z 0 m m 502 792 283 355 0 0 0 0 7,173 3,783 5,993 5,584 4,920 15,867 15,161 9,436 102,567 239 679 17 742 13,269 12,923 7,363 50,959 1,800 1,800 259 1,077 327 380 11 7,797 244 265 268 207 216 166 228 2,719 0 5 10 0 10 0 0 25 0 0 0 10 0 0 0 10 6,430 7.0 6.3 z 0,, DD 3.7 5.8 5.4 4.8 15.5 14.8 9.2 100.0 40 ALABAMA AGRICULTURAL EXPERIMENT STATION Shipments by Mode of Transportation The most important mode of transportation in shipments of grains in Alabama, excluding export, was truck, table 31. The second most important mode of transportation was water, while rail was third. Barge transportation in 1977, including export, accounted for 58 percent of the shipments while truck represented 31.9 percent, and rail accounted for 10.1 percent. These percentages compare with 1970 as follows: barge, 41.7; truck, 30.1; and rail, 28.2 (2). In 1970, there was a more even distribution of the shipments by mode of transportation than in 1977. The shift from rail to barge transportation is partially accounted for by the 26,401,000 bushel increase in exports (2). The data reveal that barge transportation was the most important mode in terms of shipments of the three leading grains; corn, soybeans, and wheat. Truck remained second in importance while rail was least important. In transporting the lesser important grains (oats, grain sorghum, and rye), water transportation was not used. Transportation was by rail and truck, table 31. Shipments by Truck by Distance To farmers. More than half of all grain shipments to farmers by truck traveled less than 25 miles, table 32. The remainder fell in the 26-50 mile category except for corn where slightly more than 1 percent traveled 50 to 100 miles. No shipments were reported in the over 100 mile-distance category. As with receipts, in each case the percentage of grain shipments decreased rapidly as the distance increased. To other elevators. There was no definite relationship between distance and shipments of grain by truck to other eleTABLE 31. GRAIN SHIPMENTS, BY KIND OF GRAIN AND MODE OF TRANSPORTATION, ALABAMA, 1977 Kind of grain Corn ...................... Soybeans .................. Wheat ..................... Oats ...................... Grain sorghum .............. Rye ....................... Total .................. Percent................ Rail 1,042 7,012 700 1,566 10 0 10,330 10.1 Truck 17,709 12,870 1,010 1,153 15 10 32,767 31.9 1,000 bu. 1,000 bu. Water Domestic Export Total water 1,000 bu. 1,000 bu. 1,000 bu. 22,306 2,479 19,827 20,557 31,077 10,520 6,087 5,042 1,045 0 0 0 0 0 0 0 0 0 45,426 59,470 14,044 58.0 44.3 13.7 GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA TABLE 32. GRAIN SHIPMENTS TO FARMERS BY TRUCK, BY KIND OF GRAIN, AND BY DISTANCE, ALABAMA, 1977 41 Kind of grain Corn ................... Soybeans ............... W heat .................. Oats ................... Grain sorghum .......... Rye .................... 0-25 Pct. 67.0 0 60.9 50.9 0 0 Distance in miles 26-50 51-100 Pct. Pct. 31.8 1.2 0 0 39.1 0 49.1 0 0 0 0 0 Over 100 Pct. 0 0 0 0 0 0 vators, table 33. Corn was the only grain that followed the pattern of decreasing shipments as the distance increased from the elevator. The highest percentage of soybean shipments traveled 50100 miles. The over 100-mile category of shipments.contained the highest percentages of wheat, oats, and grain sorghum. Net Grain Imports "Net grain imports" refers to the amount of grain imported into Alabama which remained within the State and was available for utilization by Alabama firms or Alabama farmers. Net grain received refers to the total amount of grain received into Alabama from out-of-state sources and net shipments is the total grain shipped out of state. By subtracting net shipments from net receipts, net imports are determined, table 34. Net imports were 79,596,000 bushels in 1977, compared with 70,703,000 bushels in 1970 (2). Corn accounted for almost 93 percent of the 1977 figure which was very close to the 88.6 percent reported in 1970. Wheat accounted for 6.5 percent of the 1977 net imports while in 1970, 4.4 percent of net imports was accounted for by wheat. Net imports of oats, grain sorghum, and rye were very low. Soybeans were the only grain with a negative net import in the sample in 1977. TABLE 33. GRAIN SHIPMENTS TO ELEVATORS BY TRUCK, BY KIND OF GRAIN, AND BY DISTANCE, ALABAMA, 1977 Kind of grain Corn ................... Soybeans ............... Wheat.................. Oats ................... Grain sorghum ........... Rye .................... 0-25 Pct. 45.4 28.6 4.3 29.6 0 0 Distance in miles 51-100 26-50 Pct. 27.5 25.7 35.1 9.2 0 0 Pct. 18.4 38.1 5.2 2.7 0 0 Over 100 Pct. 8.7 7.6 55.4 58.5 100.0 0 42 42 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 34. NET CRAIN IMPORTS, BY KIND GRAIN, ALABAMA, 1977 OF Item Net grain received 1,000 bu. Corn ................... 95,349 Soybeans...............28,824 Wheat .................. 10,925 Oats ................... 2,337 Grain sorghum.......... 308 Rye .................... 10 Total ............... 137,753 Kind of grain Net shipments 1,000 be. 21,671 29,340 5,730 1,416 Net imports 1,000 be. 73,678 -516 5,195 921 Percent Pct 92.6 -0.7 6.5 1.2 0 0 58,157 308 10 79,596 0.4 0 100.0 LITERATURE CITED (1) BEDRI, OSMAN ABDEL KARIM, Feed Grain Production and Utilization (2) (3) Balances for Alabama, Past, Present, and Future. Unpublished M.S. Thesis, Auburn University, Auburn University, Alabama, August, 1979. CAvANAUCH, JON DAVID, An Analysis of the Feed Grain Market for Alabama in 1970. Unpublished M.S. Thesis, Auburn University, Auburn University, Alabama, June, 1971. STALLINGS, JAMES L., AND G. L. HARRISON, GrainHandling and Processing Firms in Alabama 1977 and Members the Alabama Grain Dealers Association, Inc., a Directory, Agricultural Economics Series 21 of vised), (Re- Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn University, Alabama, June, 1977. GRAIN FIRMS AND GRAIN MOVEMENTS IN ALABAMA 43 APPENDIX - GLOSSARY OF TERMS 1. Country elevator - This is a firm whose primary activity is the collection and merchandising of raw grain from farmers. Specifically, firms classed as a country elevator receive more than 50 percent of the raw grain directly from farmers and more than 50 percent of the raw grain received was shipped out of the facility as raw grain. The definition is not affected by the distribution of the grain or by whether some manufacturing of feed or ingredients takes place at the firm. 2. Terminal elevator - A firm whose primary activity is the collection and merchandising of raw grain from other firms rather than farmers. It is classed as a terminal elevator if it receives more than 50 percent of its grain from firms other than farmers. Although it is typical that terminal elevators sell to firms other than farmers, some firms may be classed as terminal elevators that receive more than 50 percent of their grain from other firms and sell directly to farmers. however, more than 50 percent of the raw grain received must be shipped out of the facility as raw grain to be classified as a terminal elevator. 3. Feed manufacturer or feed mill - A firm whose primary activity is any kind of feed manufacturing, including such activities as production of complete feeds, production of feed ingredients and premixes, feed grinding (including custom grinding), and feed mixing. More than 50 percent of its total revenue must come from the sale of feed or feed ingredients. 4. Integrated poultry - A firm, which could otherwise be classified as a feed manufacturer or feed mill, whose operation involves raising of broilers, production of eggs, or raising of other poultry as part of a total operation, and more than 50 percent of its dollar revenue comes from the sale of poultry or poultry products. In order to qualify under this category for this study, such a firm must receive at least some raw grain as part of the total operation. 5. Integrated livestock - Same as integrated poultry except that it involves all other livestock except poultry. 6. Soybean processor - A firm whose primary activity is extracting oil from soybeans, with soybean meal a product of the operation. It receives more than 50 percent of its revenue from processed products of soybeans. 7. Flour mill - A firm whose primary activity is the milling of wheat flour(s) that result from complete milling of at least 50 percent of the wheat flour (s) produced. 8. Dry corn miller - A firm whose primary activity is the milling of corn meal, corn flour, pearl hominy, hominy grits, brewer's grits, or corn germ. More than 50 percent of its revenue must come from the sale of corn-milled products. 9. Port elevator1 A firm whose primary activity is the collection of raw grain for export and the loading of ocean-going vessels. Elevator" in this study refers to the Public Grain Elevator of the Alabama State Docks System, Mobile, Alabama. "'Port I: :1111 AgflcuiiUt'au i u ii111Cii ,1i i~tli S sk i1i AUBURN UNIVERSITY \With an agri( ulex er matjoIFso il Jtie,it scree" the needi" ofgt field cro)p, livesto ck, torest-r\ and hor tiruluutal proiducers in eac h regfion in Al ahana. V ern c iti Zel fnI)the State has a Mtake in this research pror uran sitnce any ' 14 advantage fr om ne\\ anc mo re cc()i nm iCal \\t, of itt luc ing anid handling® farm prouducts di- t - ® rec tl benefits the Colllllgphi.Research iTnjt Identification t® Main Agricultural Experiment Station, Auburn. SE. V. Smith Research Center, Shorter. Tennessee Valley Substation, Belle Mina. Sand Mountain Substation, Crossville. North Alabama Horticulture Substation, Cullman. Upper Coastal Plain Substation, Winfield. Forestry Unit, Fayette County. Foundation Seed Stocks Farm, Thorsby. Chilton Area Horticulture Substation, Clanton. Forestry Unit, Coosa County. Piedmont Substation, Camp Hill. Plant Breeding Unit, Tallassee. Forestry Unit. Autauga County. Prattville Esperiment Field, Prattville. Black Belt Substation, Marion Junction. The Turnipseed-Ikenberry Place, Union Springs. Lower Coastal Plain Substation, Camden. Forestry Unit, Barbour County. Monroeville Experiment Field, Monroeville. Wiregrass Substation, Headland. Brewton Experiment Field, Brewton. 20 Solon Dison Forestry Education Center, Covington and Escambia counties. 21. Ornamental Horticulture Field Station, Spring Hill. 22. Gulf Coast Substation, Fairhope 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 16. 19.