(II 11011 EITS iH hA Firmis Vliiiies idu 'h~.~aim poriaii b 'ed BULLETIN 355 NOVEMBER 1964 Agricultural Experiment Station A U BU RN E. V. Smith, Director U N IV ER SIT Auburn, Y Alabama CONTENTS - -INTRODUCTION------------------ OBJECTIVES OF THE STUDY______ TYPE AND SIZE OF BUSINESSCLASSIFICATION OF FIRMS---------VOLUME OF BUSINESS------------- Page 3 _ 4 4 ---4 - 5 -5 -- Total Storage Capacity Storage Capacity Ranges- - - - - 5 QUARTERLY GRAIN MOVEMENTS BY FIRM TYPES-6 P urchases- - - - - - - - - - - - - - - - - - - - - - -- - 6 Sales-8------ --Yearly Summary-------------- -- 9 10 NET MOVEMENTS OF GRAIN-INSHIPM ENTS-- -- -- ----- - -- - -- - -- - -- - - 10 - 10-------------C orn ---------11-------Soybeans- - - - - - - - ----------- 12 Wheat- - - - - - - -12------------ - - - - - - - -1 3 --O a ts -- ---- ----13 -Grain Sorghum ---------------- OUTSHIPMENTS -------------- 13 Corn13----- --Soybeans -------------------Wheat- - - - - - -15-Oats-15 14 - - - - - - ------------- 15 15 N ET IM PO RTS-------------------------------------- TRANSPORTATION ANALYSIS------------------------15 RELATIONSHIP OF FIRM TYPE TO METHOD OF TRANSPORTATION-----------------------------15 EFFECT OF GEOGRAPHICAL LOCATION ON METHOD 16 ----------------------------OF TRANSPORTATION Inshipm ents---------- ------------ -------------- 16 S h ipm ents-- -- - - - - - - - - -- - - - - - -- - -- - - - - - - - - - - - - - - 17 TYPES OF CARRIERS USED---------------------------18 Truck s -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 8 Barge s - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 8 Ra il - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 9 CHANCES IN METHOD OF TRANSPORTATION BY FIRM TYPE -19 COMPARISONS OF TRUCK, RAIL, AND BARGE RATES-_-----19 SUMMARY AND IMPLICATIONS ----------------------- 21 ----- ------- -- ------- 24 A PP END IX -- ------------- ----- FIRST PRINTING 3M, NOVEMBER 1964 GRAIN MOVEMENTS inAlabama: Firms, Volumes, and Transportation Used* WAYNE C. CURTIS** and MORRIS WHITE Department of Agricultural Economics INTRODUCTION ALABAMA CONTINUES to be a grain-deficit area even though yield per acre continues to increase. In 1962, it was estimated that only 62 per cent of the grain needed in the State was home produced.' Acreage devoted to feed grains - corn, wheat, oats, and grain sorghum - in Alabama during the 10-year period 1952-61 declined 85 per cent, Appendix Table 1. Beginning with 1954, there was a decline in feed grain acreage in every year through 1961. Most notable among the declines during this period was corn acreage. Alabama's corn acreage declined 86 per cent (800,000 acres) from 1952 through 1961 - 2.2 million to 1.4 million acres. With the exception of 1952 and 1954, production of feed grains in Alabama has not fluctuated widely, Appendix Table 2. However, Alabama is still a grain-deficit area. This status has been * This study was supported by funds provided by the Research and Marketing Act of 1946 and by State Research funds. The overall study was carried out as Alabama Research Project Hatch 590, and was a contributing project to the Southern Regional Grain Marketing Research Project SM-11. ** Resigned. 1Morris White and Wayne Curtis, Estimated Number of Livestock on Farms and Estimated Feed Needs in Alabama in 1962, Department of Agricultural Economics, Auburn University Agricultural Experiment Station, Auburn, Alabama, June 1962. 4 ALABAMA AGRICULTURAL EXPERIMENT STATION the result of a tremendous increase in poultry production in Alabama during the past few years. :Numbers of broilers produced have increased from 23 million in 1952 to 198 million in 1961, Appendix Table 3. Broiler production has become one of the leading agricultural industries in the State. Also, beef cattle numbers have increased during this period by slightly more than 300,000 head, thus bringing about increased consumption of grain. There have been no material changes in numbers of hogs. The gap between feed-grain production and requirements means that movements of grain from surplus-producing areas to Alabama have become important. In recent years, large quantities of grain have been imported to meet the grain deficit. Net inshipments of over 36 million bushels of feed grains were made in 1959, while slightly less than 30 million bushels were imported in 1960. OBJECTIVES of the STUDY The overall objective of this study was to ascertain information relative to quantity and costs of grain imported into Alabama. Specific objectives were: (1) to characterize and classify Alabama grain handling firms existing in 1960; (2) to determine for 1959 and 1960 the amount and quality of grain imported into Alabama; and (3) to determine the sources, methods, and transportation rates involved in procuring imported grain. TYPE and SIZE of BUSINESS Classification of Firms Existing firms that handled grain, grain products, or soybeans were divided into six categories: elevator, feed manufacturer, feed mixer, custom grinder, processor, and other. An elevator was considered to be a firm whose primary business was buying and selling grain in an unprocessed form. Feed mixing consisted of adding grains to commercial premixes or concentrates. Firms were classified as feed manufacturers if they used a premix or concentrate that required at least oil meals in addition to the grain. Custom grinders were feed mills that ground, mixed, and added ingredients to the feed ingredients brought in by feeders. Processors were those firms that processed oil crops. Firms under the grouping "other" included all firms not in the above categories whose primary business was grain handling. GRAIN MOVEMENTS in ALABAMA 5 The largest number of grain-handling firms were feed manufacturers. Thirty-three of the 140 grain-handling firms in the State were in this category. There was an equal number of elevators, feed mixers, and custom grinders. There was only one processor in the State.2 The number of firms in each category is shown below: Number Business type Elev ator- -- - - -- - - - - - - - - - - - - - - - -- - - - - - -30 Feed manufacturer----- ----- ---- ----- -- --- - -33 Feed m ixer--------- --------- --------- ---- - -30 Custom grinder--------------------------- --- -30 Processor----------------------------1 of firms Othe r - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - To ta l- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -1 -1 6 40 Volume of Business Total storage capacity Total storage capacity for grains in the State in 1960, including bulk and sack storage, was almost 9.5 million bushels, Table 1; approximately 7.5 million bushels was bulk storage. The 30 elevators in the State, while comprising only 21 per cent of the total number of firms, accounted for about 55 per cent of total storage capacity. They had the largest portion of both bulk and sack storage capacity. Feed manufacturers ranked second in importance in total storage capacity, accounting for approximately a third of the total. TABLE 1. TOTAL STORAGE CAPACITY FOR GRAINS BY SPECIFIED PRIMARY FIRM TYPES, ALABAMA, 1960 Firm type Elevator--------------Feed manufacturer-----Feed Custom grinder--------Other----------------- mixer ------------- Bulk Bushels 4,085,000 2,348,000 340,000 Sacks Bushels 1,060,000 632,000 57,000 Total Bushels 5,145,000 2,980,000 397,000 TOTAL-------------- 372,000 364,000 7,509,000 78,000 93,000 1,920,000 450,000 457,000 9,429,000 Storage capacity ranges A majority of the firms had storage capacities of less than 100,000 bushels, Appendix Table 4. All feed mixers and custom 2Soybean grind- processor. 6 ALABAMA AGRICULTURAL EXPERIMENT STATION ers reported capacities within that limit. Only elevators and feed manufacturers had capacities in excess of 100,000 bushels. Eight elevators and five feed manufacturers had facilities that were in the range of 100,000 to 250,000 bushels. Five elevators had storage capacities of 250,000 to 500,000 bushels, and one elevator had storage for more than 1 million bushels. Almost all firm operators reported sack-storage capacities of less than 100,000 bushels. There were two exceptions; three elevators and three feed manufacturers had sack storage in the range of 100,000 to 250,000 bushels. Average storage capacity was greatest for elevators, Table 2. The average total capacity of elevators was 176,000 bushels, while the bulk and sack capacities were 140,000 and 36,000 bushels, respectively. Feed manufacturers were the only other firm type that had an average storage capacity approaching that of the elevators - 89,000 bushels. TABLE 2. AVERAGE GRAIN STORAGE CAPACITY PER FIRM BY PRIMARY FIRM TYPES, ALABAMA, 1960 Bulk Elevator____________________________. Feed manufacturer----------. Feed mixer Custom grinder_________________ Other ........... Bushels 140,000 70,000 11,000 12,000 7,000 Average storage capacity Sack Bushels 86,000 19,000 1,000 2,000 6,000 Total Bushels 176,000 89,000 12,000 14,000 13,000 Quarterly Grain Movements by Firm Types8 Purchases Corn. Quarterly percentages of total corn purchases by firm type for 1959 and 1960 are given in Table 3. There was a fairly even distribution of purchases by elevator operators during 1959, but this was not the case in 1960. Fairly uniform purchases were made by feed manufacturers and feed mixers in both years. Predominant purchases by custom grinders in both years, on the other hand, were made during the last quarter of the year. Acquisitions made by custom grinders were for the most part local purchases. This explains why purchases were made in the fall. 3Months included in each quarter were as follows: first, January-March; second, April-June; third, July-September; and fourth, October-December. GRAIN MOVEMENT'S in ALABAMA 7 TABLE 3. CORN: PERCENTAGE OF TOTAL PURCHASES MADE BY EACH QUARTER BY PRIMARY FIRM TYPE, ALABAMA, 1959 AND 1960 Firm type Year Purchases by quarter 1 2 3 4 Elevator Feed manufacturer. Feed mixerCustom grinderOther___ ...........- 1959 1960 1959 1960 1959 1960 1959 1960 1959 Per cent Per cent Per cent Per cent 27 27 25 22 17 45 29 10 22 28 28 22 27 22 26 25 21 23 31 25 25 29 21 24 47 15 12 26 23 42 17 18 46 10 8 37 1960 35 12 8 45 Soybeans. All soybean purchases were made by elevator operators. In 1959, 62 per cent and in 1960, 79 per cent of total purchases were made during the last quarter of the year, reflecting the period of soybean production and harvest. Acquisitions during the remaining three quarters of both years were made primarily in the first quarter. Wheat. All wheat purchases reported were made by elevator operators and feed manufacturers. Purchases at elevators during both years were made primarily during the first three quarters. However, percentage of purchases during the first quarter of 1960 was less than that of the first quarter of 1959. Quarterly purchases by elevator operators for 1959 and 1960 are given in Table 4. TABLE 4. WHEAT: PERCENTAGE OF TOTAL PURCHASES MADE IN EACH QUARTER BY ELEVATOR OPERATORS, ALABAMA, 1959 AND 1960 Year Purchases by quarter 1 Per cent 2 Per cent 33 86 8 Per cent 32 39 4 Per cent 2 6 1959 1960 - 33 19 Practically the same pattern of purchases by feed manufacturers occured in each quarter of 1959 and 1960. There was not enough variation within the 2 years to be of significance. Oats. With the exception of purchases by elevator operators, there existed a fairly uniform quarterly purchase pattern for oats 8 TABLE 5. ALABAMA AGRICULTURAL EXPERIMENT STATION OATS: PERCENTAGE OF TOTAL PURCHASES MADE BY EACH QUARTER BY PRIMARY Fim TYPE, ALABAMA, 1959 AND 1960 Firm type Year 1 Purchases by quarter 3 2 4 Per cent Per cent Per cent Per cent Elevator---------------1959 56 Feed manufacturer-------------Feed mixer_--------------- Custom grinder---------------Other---------------- 1960 1959 1960 1959 1960 1959 1960 1959 1960 12 26 22 27 29 25 25 10 3 84 64 80 29 26 22 25 25 9 2 8 2 22 27 26 22 20 26 25 72 94 2 17 23 25 29 24 25 9 1 in 1959 and 1960, Table 5. For 1959, the predominant period for purchases was the first quarter, whereas in 1960 it was the second quarter. A logical pattern, based on seasonality of production of oats, would be that most purchases take place in the latter part of the second quarter of the year or the first part of the third quarter. Grain sorghum. Very little grain sorghum was purchased by Alabama firms, and all of that was acquired by elevator operators. Only a few firms purchased grain sorghum. In both 1959 and 1960, the same amount was bought by each firm in each quarter. Therefore, the percentage of total purchases in each quarter of 1959 and 1960 was identical. Sales Corn. Corn was sold by operators of three types of firms: elevators, feed mixers, and custom grinders, Table 6. The sales pattern of elevators was similar both years. Most sales by elevator operators were made in the last quarter. The greatest percentage of feed mixers sold corn during the third quarter of the year, whereas custom grinders, usually dependent upon local farmers for their purchases, sold the greatest proportion of corn in the fourth quarter. There was a wide variation in the sales pattern of mixers between 1959 and 1960, especially during the first two quarters. Custom grinders, on the other hand, had practically no fluctuation in quarterly sales during this time period. GRAIN MOVEMENTS in ALABAMA 9 TABLE 6. CORN: PERCENTAGE OF TOTAL SALES MADE IN EACH QUARTER BY PRIMARY FIRM TYPE, ALABAMA, 1959 AND 1960 Firm type Year Purchases by quarter 1 2 3 4 Per cent Per cent Per cent Per cent 18 18 32 Elevator- -- ---- 1959 Feed mixer Custom grinderOther-_ -- 1960 1959 25 24 21 24 24 86 82 30 16 1960 1959 1960 1959 9 10 9 46 18 11 12 0 48 25 25 18 25 54 54 36 1960 35 19 17 29 Soybeans. All soybean sales in Alabama in 1959 and 1960 were made by elevator operators. In both years, more than 90 per cent of sales was made during the last quarter of the year. Other sales were fairly evenly distributed among the remaining quarters. In 1959, 91 per cent and in 1960, 93 per cent of sales occurred in the fourth quarter. Wheat. Like soybean sales all wheat sales were made by elevator operators. Most sales occurred during the middle two quarters. Approximately 80 per cent of all sales came during that period. Oats. Oats were sold by both elevator operators and custom grinders. During both years, all sales by custom grinders were made in the second quarter. Between 40 and 50 per cent of all sales was made by operators of elevators during the same quarter of the year. Grain sorghum. There were no sales of grain sorghum reported by any of the firms in 1959 or 1960. Yearly Summary Yearly purchases and sales of grains for 1959 and 1960 by the various types of firms in Alabama are summarized in Table 7. The data show the importance of elevators in grain transactions in the State, both purchases and sales. Slightly less than 80 per cent of all purchases and more than 90 per cent of all sales in terms of total volume were made by elevator operators. The predominance of elevators in sales is explained by the fact that firms other than elevators are service-type firms using grain to manufacture a feed or food product in most cases, whereas elevators 10 TABLE 7. ALABAMA AGRICULTURAL EXPERIMENT STATION PURCHASES AND SALES OF GRAIN, BY FIRM TYPE, ALABAMA, Year and type of transaction Feed manufacturer 1959 AND 1960 Feed mixer Custom grinder Elevator Total Bushels Purchases 1959 .. 1960 .. Sales 1959 .. 1960 .. 48,500,900 39,289,100 6,652,300 7,506,400 I I Bushels 9,482,3( 00 10,041,9( )0 0 0 Bushels 1,259,100 2,997,900 48,000 40,200 Bushels 1,502,900 1,412,000 465,100 256,800 Bushels 60,745,200 53,740,900 7,165,400 7,803,400 are used to transfer grain. Therefore, the other firms resold little if any non processed grain. NET MOVEMENTS of GRAIN Inshipments Corn 4 Approximately 18 million bushels of corn were reported to have been shipped into Alabama in 1959. Reported inshipments decreased to slightly more than 14 million in 1960, Table 8. Considering the 2 years together, Illinois was the leading exporter of corn to Alabama, accounting for 43 per cent of the total in 1959 and 62 per cent in 1960. In 1959, however, Iowa was the individual leader, making up 44 per cent of the total shipments. Missouri also was an important shipper of corn to Alabama in both years. TABLE 8. CORN: VOLUME REPORTED RECEIVED BY FIRMS, BY STATE OF ORIGIN, ALABAMA, 1959 AND 1960 Origin °y Illinois Indiana-----------------------Iowa-Kentucky Missouri Tennessee -260,000 Volume by year 1959 Bushels 7,807,200 165,200 7,992,400 534,000 1,392,700 1960 Bushels 8,812,800 271,800 2,815,300 609,000 1,174,100 370,000 TOTAL 18,151,500 14,053,000 Excludes a number of port receivers on the Tennessee River that did not report grain movement data. GRAIN MOVEMENTS in ALABAMA 11 In both 1959 and 1960, the greatest proportion of corn inshipments was made by barge. Barge shipments comprised 44 per cent of the total in 1959 and more than 50 per cent in 1960. The greatest change in mode of transport was in rail shipments, which decreased more than 60 per cent from 1959 to 1960. Trucks increased in rank of importance from third in 1959 to second in 1960, and total volume shipped by truck increased more than a million bushels. The importance of barges in transporting corn from Illinois to Alabama was evidenced by the fact that more than three-fourths of all corn shipped from Illinois in both years came by barge, Appendix Table 5. The remainder was hauled by trucks. From Iowa, the second largest exporter, a different transportation pattern existed. More than 90 per cent arrived in Alabama via rail shipments. Except for a small amount, the remainder was transported by trucks. The pattern for shipments from Missouri duplicated somewhat that of Illinois. Of the 1.39 million bushels shipped in 1959, about 900,000 arrived by barge and 430,000 by truck. Shipments in 1960 by method of transportation closely approximated those of 1959. For the remaining states exporting corn to Alabama, several methods of transportation were used. For instance, all Indiana shipments in both years were made by truck, whereas most of the Kentucky deliveries were made by barge. Almost all corn coming from Tennessee was by rail shipments. Soybeans All soybeans received by Alabama firms from outside the State in 1959 and 1960 originated in Illinois and Iowa. Total annual shipments in both years exceeded 10.5 million bushels. Iowa was by far the leader in terms of total shipments in both years, accounting for 86 per cent in the first year and 74 per cent in 1960. Origin Illinois Iowa TotaL Og1959 Bushels 1,487,000 9,112,500 10,599,500 1960 Bushels 2,691,000 7,841,900 10,532,900 Rail was utilized more than any other means for transporting soybeans into Alabama both years, Appendix Table 6. More than 75 per cent of the soybeans were moved by this method in 1959 12 ALABAMA AGRICULTURAL EXPERIMENT STATION and more than half in 1960. During this period there occurred an increase in both truck and water transportation. Only rail and truck were used to ship Iowa soybeans to Alabama. A predominance of rail transportation was used. From Illinois, on the other hand, the only method of transportation was by barge. Wheat During the period under study, eight states contributed to wheat imports in Alabama, shipping about 8 million bushels in 1959 and approximately 6 million in 1960, Table 9. Iowa led in shipments to the State in both years, accounting for about 60 per cent of total Alabama inshipments in both years. In 1959, Illinois ranked second in importance, and Missouri was third. Their ranks were reversed in 1960. Other states that were important in supplying wheat were Minnesota and Nebraska. Most of the wheat received by Alabama firms from points outside the State during 1959 and 1960 was received by rail, Appendix Table 7. During both years, 58 per cent was received by this means of transportation. Most of the remaining inshipments of wheat came by barge in both 1959 and 1960; a small amount was shipped by truck. Iowa, the leading state, made greatest use of rail facilities to transport wheat, but limited quantities were shipped by truck. From Illinois, Missouri, and Minnesota - the other leading wheatexporting states - there was in both years a great predominance of barge shipments; no method other than barge was used in shipping Illinois wheat. A mixed pattern existed in the other states shipping wheat to Alabama. TABLE 9. WHEAT: VOLUME REPORTED RECEIVED BY FIRMS, BY STATE OF ORIGIN, ALABAMA, 1959 AND 1960 Volume by year Origin1959 Bushels Illinois --- --------Iowa Kansas Kentucky -Minnesota -841,000 Missouri........ Nebraska -240,000 Tennessee --TOTAL ---- -------1,605,000 4,798,100 165,000 43,000 942,100 89,000 8,223,200 1960 Bushels 523,000 3,807,400 0 92,000 260,000 1,187,400 46,000 36,000 5,951,800 GRAIN MOVEMENTS in ALABAMA 13 GRAIN MOVEMENTS TABLE 10. OATs: in ALABAA VOLUME REPORTED RECEIVED BY FIRMS, BY STATE 1 1960 OF ORIGIN, ALABAMA, 1959 AND OriginVolume Illinois-------------------------------Iow a--------- - ------- ------------------------------ by year 1959 Bushels 804,000 182,000 -Minnesota-----------------Mississippi----------------------------M issouri-------------------------TOTAL ----- 0 163,400 823,600 Tennessee------------------------------- 98,000 1960 Bushels 205,000 1,000 138,000 652,300 684,800 28,000 2,071,000 1,709,100 ---------------------------------------- Oats Table 10 gives the origins and amount of oats shipped into Alabama in 1959 and 1960. The leading states in 1959 were Illinois and Missouri, each shipping about 800,000 bushels. In 1960, however, Missouri was the leader, and Mississippi was the second most important exporter of oats to Alabama. Illinois was in third place. The three remaining states - Iowa, Minnesota, and Tennessee - shipped small amounts. In 1959, most oat inshipments arrived in Alabama by means of trucks or barges. The amount delivered by the latter slightly exceeded that shipped by trucks, Appendix Table 8. Approximately 13 per cent was delivered by rail. On the other hand, in 1960, there was a great predominance of inshipments by truck; this method accounted for approximately 79 per cent of total inshipments. All but 2,000 bushels of the remainder was shipped by barge. In 1959, Illinois relied almost entirely on barges to transport oats, whereas Missouri exporters favored truck transportation both years. No method other than trucks was used by Mississippi shippers in either year. Minnesota shippers, who did not ship oats to Alabama in 1959, used barges only in 1960. Groin Sorghum All grain sorghum. shipments into the State, totaling 246,430 bushels in 1959 and 1960, were made from Mississippi. Shipments in both years were by trucks. Outshipments Corn Corn shipped from Alabama, amounting to approximately 1.6 million bushels in 1959 and 1.5 million bushels in 1960, was de- 14 ALABAMA AGRICULTURAL EXPERIMENT STATION TABLE 11. CORN: VOLUME REPORTED SHIPPED BY FIRMS, BY STATE OF DESTINATION, ALABAMA, 1959 AND 1960 Destination 1959 Volume by years 1960 Bushels . . ----Florida ------------------------ 179,600 1,232,200 Georgia----------------30,800 Louisiana 131,300 Mississippi 25,000 Tennessee_-----------------................... TOTAL_______________ 1,598,900 Bushels 151,900 1,110,400 57,100 8,000 151,300 1,473,700 livered mostly to surrounding states, Table 11. The greatest volume was shipped to Georgia, accounting for more than threefourths of total Alabama outshipments in both 1959 and 1960. Florida ranked second in both years in terms of total shipments of corn received from firms in Alabama. Mississippi was third in 1959, but dropped to fifth place in 1960. Tennessee, ranking fifth in 1959, was third in 1960. Truck transportation was the chief method of moving corn from Alabama to neighboring states both years. Ninety-eight per cent was moved by truck in 1959 and 95 per cent in 1960, Appendix Table 9. There were no rail shipments of corn from Alabama. The remaining small amounts were moved by barges. Soybeans All soybeans shipped from Alabama in 1959 were sent to Florida and Tennessee, and in 1960 all shipments went to Tennessee. Total shipments out of the State in 1959 amounted to slightly more than 400,000 bushels, while only 176,000 bushels was shipped in 1960, Table 12. All outshipments of soybeans in 1959 were by truck. Shipment of soybeans to Tennessee in 1960 totaled 161,600 bushels by truck and 14,000 bushels by barge. TABLE 12. SOYBEANS: VOLUME REPORTED SHIPPED BY FIRMS, BY STATE OF DESTINATION, ALABAMA, 1959 AND 1960 Volume by years Destination 1959 Bushels Florida - -Tennessee TOTAL.1 1 1960 Bushels 0 175,600 175,600 ----------------------------------- --- - 104,100 299,500 I - ... - - - .............. - - - - -- - - - - - - - 403,600 -- GRAIN MOVEMENTS in ALABAMA 15 Wheat All wheat outshipments from Alabama in 1959 and 1960 went to Tennessee. Total outshipments were 290,000 bushels in 1959 and 190,000 bushels in 1960. Most shipments were made by barge in 1959 and 1960, accounting for 79 and 67 per cent of total wheat outshipments, respectively. Those shipments not made by barge were made by truck. Reported shipments by each method are shown below: Method Truck- Rail Barge__1959 Bushels 62,500 0 280,000 1960 Bushels 62,500 0 129,000 191,500 ...........--292,500 .. . TOTAL .... .... Oats Few oats were shipped out of Alabama in either 1959 or 1960. All of the 5,000 bushels shipped in 1959 went to Tennessee, while total 1960 outshipments of 20,000 bushels went to Georgia. The 1959 outshipments to Tennessee went by truck. In 1960, rail was used exclusively to transport oats that went from Alabama to Georgia. Net Imports Net imports of corn into Alabama were much larger than any other grain, Appendix Table 10. Corn imports, however, dropped from 16.6 million bushels in 1959 to 12.6 million bushels in 1960. Soybeans were also important in terms of total imports both years. Net soybean imports exceeded 10 million bushels both years 10.2 in 1959 and 10.4 in 1960. Among the three remaining grains, net wheat imports were largest. Wheat imports reached approximately 8.0 million bushels in 1959 and then declined to about 5.8 million bushels in 1960. Imports of oats approximated 2 million bushels both years, and grain sorghum imports held steady at 246,430 bushels. TRANSPORTATION ANALYSIS Relationship of Firm Type to Method of Transportation Examination of relationship between type of firm and the capability to receive and ship grain by different methods of transportation revealed that trucks were most widely used among 16 ALABAMA AGRICULTURAL EXPERIMENT STATION the different types of firms, Appendix Table 11. All firms were equipped to handle truck inshipments, and all elevators, feed manufacturers, and custom grinders were capable of handling truck outshipments. All firms did not have a full rail capability. On the other hand more than 80 per cent of the feed manufacturers were equipped to receive boxcar or hopper car receipts, and two-thirds indicated that they could ship by this method. About one-third of the elevator operators could ship and receive by this method, whereas one-half of the feed mixers were equipped to handle rail shipments and receipts. No custom grinders in the State could ship or receive by rail. Capabilities for receipt and shipment of grain by barge were limited to elevators and feed manufacturers. Four Alabama elevator operators reported that they were equipped to receive and ship grain by barge. Two feed manufacturers were capable of receiving shipments by this method, but only one was able to ship by barge. Effect of Geographical Location on Method of Transportation Inshipments Most inshipments of grain into Alabama came from the Midwestern states of Illinois, Iowa, and Missouri. In terms of total volume of inshipments, Iowa was the leader, accounting for approximately 55 per cent of all inshipments in 1959 and 1960. The total amount of grain received from these origins for 1959 and 1960 is given in Appendix Table 12. Iowa. Rail transportation was used almost exclusively for inshipments from Iowa. Most shipments originated in central and western Iowa, around Des Moines, where there are no navigable rivers; this accounts in part for the absence of barge transportation. Most rail shipments were made to central and southern Alabama, especially into Birmingham and Montgomery. A substantial amount of grain was shipped from Iowa to Alabama by truck. Most of these shipments were backhauls; that is, trucks from Alabama and the Southeast transported lumber and other products into Iowa, and corn or other grains were picked up for return haul to Alabama. Such shipments of grain were made to numerous localities throughout the State. Davenport, Iowa, located on the Mississippi River, was an important truck- GRAIN MOVEMENTS in ALABAMA 17 ing center and was also used for the small amount of grain shipped by barge. Illinois. Most grain shipments from Illinois were made by barge. Much of that produced in western Illinois came down the Mississippi River to Cairo. It was then shipped up the Ohio and Tennessee Rivers to the Decatur-Guntersville area. Grain produced in southern and eastern Illinois moved by barge by way of the Wabash or Ohio rivers, and then up the Tennessee River. East St. Louis and Cairo were important as barge-shipping centers in Illinois. About one-sixth of total grain shipments from Illinois were made by truck. Important trucking centers in Illinois were Peoria in north central Illinois, Centralia in south central Illinois, and Cairo in northeastern Illinois. As was the case with truck shipments from Iowa, shipments by truck from Illinois were largely backhauls. Missouri. Grain shipments from Missouri for the most part, came by truck or barge with most of it by the latter. The principal origin for barge shipments was St. Louis. Slightly more than a third of the grain shipments from Missouri came by truck. Most truck shipments originated in St. Louis or Kansas City, particularly the latter, and were largely backhauls. Truck deliveries from Missouri went to numerous destinations in the State. Shipments Most shipments of grain originating from Alabama in 1959 and 1960 went to surrounding states, Table 13. Approximately 60 per cent of total outshipments was accounted for by firms in Georgia during this time period, while more than 25 per cent of Alabama outshipments were received in Tennessee. TABLE 13. ALL GRAIN: TWO-YEAR TOTAL VOLUME REPORTED SHIPPED BY FIRMS TO FLORIDA, GEORGIA, MISSISSIPPI, AND TENNESSEE BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Method Florida Bushels Truck Rail Water TOTAL........ PER State and volume Georgia Mississippi Bushels Bushels 2,342,600 200,000 0 2,542,600 60 Tennessee Bushels 672,400 0 468,000 1,140,400 27 Bushels 3,584,900 200,000 468,000 4,252,900 100 435,600 0 0 435,600 10 CENT...... 134,300 0 0 134,300 3 18 ALABAMA AGRICULTURAL EXPERIMENT STATION The transportation pattern was dominated almost entirely by truck transportation. Slightly less than 85 per cent of all outshipments was transported by this method. Grain shipped out of State for the most part, was that arriving by barge in northern Alabama. In most cases, it was unloaded from the barges directly to trucks and distributed both within Alabama and to points outside. There were only two exceptions to the above pattern. In one instance, a small quantity of grain was reported shipped by rail to Georgia. In the other, grain after being received in Alabama was barged up the Tennessee River to points in Tennessee. Types of Carriers Used Trucks Truck carriers were divided into four categories to determine what types of trucks were doing the largest amount of grain hauling. These categories, according to type of regulation, were: common carrier, merchant trucker, exempt carrier, and self-owned. A common carrier was considered to be a vehicle that had its rates regulated by the Interstate Commerce Commission. Merchant truckers were those who bought grain and hauled it, usually selling it to another person or firm. An exempt carrier was a vehicle used for hauling grain, but the rates were not regulated by the ICC; they were exempt from regulation. Self-owned vehicles (not for hire) were those owned by the individual or organization purchasing or selling the grain. As indicated by Appendix Table 13, most 1960 grain inshipments into Alabama, with the exception of corn receipts, were made by merchant truckers. In most cases, individuals or firms buying grain bought it from truckers who purchased it at the origin and transported it to Alabama. In all cases where information was obtained, there was a complete absence of common carriers. Next to merchant truckers, self-owned trucks were used most in transporting grain. In 1960 an entirely different transportation pattern existed in outshipments by Alabama firms. Exempt carriers - truckers whose rates were exempt from ICC regulation - were of primary importance. Two-thirds of all truck shipments were made by this type of carrier. Barges For purposes of classification by type of carrier, barges were divided into two categories: nonregulated and regulated. In- GRAIN MOVEMENTS in ALABAMA 19 cluded among the nonregulated types of water carriers were private or exempt barges. Regulated carriers were common or contract barges. Few respondents were able to give answers as to the type of barge carrier employed to bring grain into Alabama. Firms giving information stated that half of their total imports by water was accounted for by nonregulated and half by regulated water carriers. Rail All grain movements by rail, both into and out of Alabama, were regulated by the Interstate Commerce Commission. Changes in Method of Transportation by Firm Type Relative to changes in volume of grain bought from or sold to truckers since the mid 1950's, most firm operators indicated that there had been no change from 1955 to 1960, Appendix Table 14. The most important changes were reported by feed manufacturers and feed mixers. Feed manufacturers stated that there had been increases in amounts bought, ranging from less than 10 per cent to 50 per cent or more. Six firms recorded volume increases of less than 10 per cent, while seven experienced increases of 50 per cent or more. Six feed mixers indicated that they had increased the amount of grain bought by 25 to 49 per cent, and said they had increased their volumes by 50 per cent or more. Only a small number of operators provided information regarding usage of hopper cars. There were not enough respondents to indicate a pattern. No information was obtained from firms relative to changes in barge usage. Comparisons of Truck, Rail, and Barge Rates Since corn is the most important grain used in Alabama and because of the availability of rates pertaining to corn shipments, comparisons were made among existing truck, rail, and barge rates for corn shipped into Alabama during 1959 and 1960. This was done in an attempt to determine what would have been the cheapest means of transportation to use in transporting corn into Alabama during this period. Comparisons were not attempted for other grains because of the lack of rate data, especially truck and rail rates. 20 ALABAMA AGRICULTURAL EXPERIMENT STATION Initially, points representing important shipping and receiving areas for corn were selected. Birmingham, Guntersville, and Montgomery were selected as representative receiving points in Alabama. They were chosen primarily because: (1) the three were centers for receiving and dispersing grain throughout the State, and (2) rates were more readily available than at other comparable points. Shipping points, on the other hand, represented actual points in the Midwest from which large shipments of corn originated. An attempt was made to select representative points that had facilities for both rail and barge transportation. However, this was not possible in all cases. Attempts were made to ascertain the existing rates in 1959 and 1960 for the previously mentioned points. It was decided that rates prevailing on January 1, 1960, the midpoint of this time period, would be used. Rail rates were obtained from the Navigation Economics Branch of the Tennessee Valley Authority, while barge rates were those published by Arrow Transportation Company of Sheffield, Alabama. They were among the lowest published common carrier barge line tariffs on file with the Interstate Commerce Commission for the 2-year period. However, lower rates were charged by barge lines not subject to ICC regulation. Lack of information regarding published truck rates necessitated use of information on trucking charges, including backhaul charges obtained from the regional survey to derive a trucking cost function. ' The function, compiled from cost data collected from seven Southern states, was as follows: C = 4.36288 + .036248X 6 where C = rate in cents per bushel X = distance in miles. Distances used in computing rates represented the shortest routes over major highways. Since barges were capable of delivering grain only to Guntersville, adjustments were necessary to make barge rates comparable to truck and rail rates to Montgomery and Birmingham. A shipping charge for trucks was computed from Guntersville to SSouthern Regional Grain Marketing Project SM-11, Revised, "Transportation of Grain and Grain Products in the South." 6An r' of .6937 indicated that 69 per cent of the variability in truck rates was accounted for by distance. The "b" value was significant at the 1 per cent level. GRAIN MOVEMENTS in ALABAMA 21 Birmingham and Montgomery. This shipping charge was added to the barge rate to Guntersville, resulting in a combined bargetruck rate. The above charge consisted of a trucking cost computed from the formula mentioned earlier plus handling costs incurred in transferring the grain. Two and a half cents were charged for receiving the grain, an equal amount was charged for loading, and 1-cent-per-bushel for merchandising. Truck, rail, and barge rates on corn from points in the Midwest to Birmingham, Guntersville, and Montgomery are given in Appendix Tables 15, 16, and 17. Appendix Tables 18, 19, and 20 contain data indicating the cheapest method of transportation to each of these points in the 1959-1960 period. Rates on shipments into Birmingham indicated that the cheapest transportation for corn was by barge-truck or truck. Shipments from Chicago, Davenport, Kansas City, and Peoria were the least expensive by barge-truck. However, shipments originating from Cairo, Louisville, and St. Louis could have been transported by truck at a lower cost. All shipments into Guntersville were cheapest by barge. Rates by truck and rail were from two to five times higher than barge. If the cheapest method of transportation had been utilized on movements of grain into Montgomery, most shipments would have been made by barge-truck. There were only two exceptions. These were shipments from Cairo and Louisville, which would have been cheaper by truck. The comparison here was for hauling grain. Milling-in-transit rates granted by railways where grain and grain products are transported were not included. SUMMARY and IMPLICATIONS Alabama firms in this study that handled grain or grain products in 1959 and 1960 were classified and enumerated. The 140 firms were divided into six groups: elevator, feed mixer, feed manufacturer, custom grinder, processor, and other. The largest group of firms, numbering 33, were feed manufacturers. Elevators, feed mixers, and custom grinders numbered 30 each. Total grain storage capacity approximated 9.5 million bushels, of which 7.5 million bushels was bulk storage. The remainder was sack storage. Most of the firms reported storage capacities of less than 100,000 bushels. Elevators and feed manufacturers, however, had capacities in excess of this. Five feed manufacturers 22 ALABAMA AGRICULTURAL EXPERIMENT STATION and eight elevators were in the range of 100,000 to 250,000 bushels. Moreover, five elevators had storage facilities that allowed for storing 250,000 to 500,000 bushels, while one elevator was capable of storing in excess of a million bushels. In both years elevators were extremely important in all grain transactions in Alabama - both purchases and sales. In terms of total volume, almost 80 per cent of all purchases and 90 per cent of all sales were made by elevators. All firms were equipped to handle truck inshipments, and all elevators, feed manufacturers, and custom grinders were capable of handling truck outshipments. A rail capability was not widespread, but all firm types except custom grinders had at least limited ability to ship or receive by this method. Ability to receive and ship grain by barge, however, was limited to elevators and feed manufacturers. In terms of volume of shipments, corn was the most important grain imported into Alabama in 1959 and 1960. Net import levels were 16.6 million bushels in 1959 and 12.6 million bushels in 1960. Second in terms of volume of imports was soybeans: 10.2 million bushels in 1959 and 10.4 million bushels in 1960. Wheat imports approximated 8.0 million bushels in 1959 and 5.8 million in 1960, while oats imports were about 2.0 million bushels both years. Grain sorghum imports were 246,000 bushels during both years. Most grain shipments to Alabama in 1959 and 1960 came from the Midwest. The principal states were Illinois, Iowa, and Missouri. Iowa led in total shipments to the State, accounting for approximately 55 per cent both years. Thirty-six per cent of the shipped grain came from Illinois, while 9 per cent was from Missouri. Slightly less than 50 per cent of the grain moving into Alabama came by rail. Important rail shipping points were Des Moines, Iowa; and Kansas City and St. Louis, Missouri. Main receiving points in Alabama were Montgomery and Birmingham. Approximately 35 per cent of all grain inshipments into Alabama came by barge. Primarily, this was because of a low-cost barge transportation system that allowed shippers to transport grain down the Mississippi River and up the Tennessee River to ports in Alabama, particularly Guntersville and Decatur. Cairo, Illinois, and St. Louis, Missouri, were principal shipping points for barges. GRAIN MOVEMENTS in ALABAMA 23 About a sixth of all imports were made by truck. Most of these shipments were backhauls arriving at points throughout the State. In addition to the barge and rail centers listed, trucking centers of greatest use were Peoria, Illinois, and Davenport, Iowa. States surrounding Alabama received most outshipments of grain in 1959 and 1960. About 60 per cent went to Georgia, and a fourth went to Tennessee. Florida and Mississippi accounted for the remainder. Truck shipments dominated the outshipment transportation pattern, accounting for 85 per cent. Approximately 10 per cent was shipped by barge from Tennessee River ports and 5 per cent was shipped by rail. None of the truck carriers used to transport grain into or out of Alabama were under Interstate Commerce Commission (ICC) rate regulation. Limited data available on barge shipments reveal that about half the barge grain movements were made by carriers having rates regulated by the ICC. All grain movements by rails, however, both into and out of Alabama, were made by carriers whose rates were regulated by the ICC. Cost of shipping grain into Birmingham, Guntersville, and Montgomery could have been reduced by use of barge or bargetruck. This was based on a comparison of truck, rail, and barge rates existing during the mid-period of 1959-1960. The next cheapest method would have been by truck. Available data on rates into Alabama during this period show that rail was the most expensive means of transportation for corn. Increased needs for grain to support a continuing expansion of the livestock and poultry industries in Alabama are likely to be supplied largely from states in the Corn Belt. Therefore, expansion of existing facilities or development of new facilities that handle imported grain, or both are indicated. Risks will be involved in choosing locations for new grain-handling facilities. There exist uncertainties relative to the level of rail freight rates as well as the development of inland waterways, such as the proposed Tennessee-Tombigbee Waterway. A facility located some place other than on an inland waterway will need to be equipped to receive and ship grain by both rail and truck. Volumes of grain moved from points in the Midwest to inland points in Alabama by combined barge-truck shipments may decline if rail and truck rates become more competitive. However, this system will continue to be among the more important means 24 ALABAMA AGRICULTURAL EXPERIMENT STATION of bringing grain into the State. In their efforts to provide transportation services and to continue as strong competitors for the business of transporting grain, it is possible that owners and operators of barges may purchase and operate trucks for delivery of grain to final destinations. Since grain prices normally are depressed at harvest time, many firms dealing in grain could possibly reduce expenditures by purchasing during the last quarter of the year. For most firms, such action would mean expansion of existing facilities to provide additional storage space. Before initiating such action, thought should be given to how much this additional storage space could be used for other purposes during the remainder of the year. Also, the amount of savings that would be expected on grain purchases, obtained through a study of past prices, would need to be compared with anticipated costs of expansion to determine if the latter would be economically feasible. APPENDIX APPENDIX TABLE 1. ACRES PLANTED TO FEED GRAINS, ALABAMA, 1952-1961 Year Corn 1,000 Wheat 1,000 Oats 1,000 sorghum 1,000 Total 1,000 acres ----. 1952 1958 -----------1954 1955-----------1956-----1957 -----1958 --. 1959 1960 - ---------- acres 11 21 24 53 80 130 100 55 acres 85 138 185 148 136 99 79 101 acres 12 25 19 42 32 37 31 23 acres 2,287 2,224 2,349 2,273 2,237 2,173 2,004 1,986 ----------- 2,179 2,040 2,121 2,030 1,989 1,907 1,794 1,807 1961 1,705 1,881 48 56 85 85 20 14 1,858 1,536 Source: Alabama Agricultural Statistics, Alabama Crop and Livestock Reporting Service, Bul. 11. GRAIN MOVEMENTS in ALABAMA APPENDIX TABLE 2. PRODUCTION OF FEED GRAINS IN CORN EQUIVALENTS,' ALABAMA, 1952-1961 Year Corn Wheat Oats Grain sorghum Total 25 1,000 1,000 bushels bushels 209 23,969 1952________________________ 462 44,880 1953________________________ 27,573 1954________________________ 528 58,870 1955________________________ 1,000 bushels 1,211 2,208 2,729 1,924 1,840 47,736 1956_______________________ 2,340 47,675 1957____________ 2,300 -_____ 55,614 1958_______ 1,265 46,982 1959____________ 1961_____________ 1 1,007 1960 ------------ 2,448 1,237 1,256 1,742 1,487 1,000 bushels 192 450 294 840 608 703 744 598 480 1,000 bushels 25,581 48,000 31,124 62,641 52,632 51,955 59,914 50,587 47,497 44,330 1,200 48,335 1,456 1,615 364 51,406 For purposes of this study, wheat and grain sorghum were considered to have 100 per cent of the feed value of corn, pound for pound, while oats were considered to have 50 per cent of the value. Source: Adapted from Alabama Agricultural Statistics, Alahama Crop and Livestock Reporting Service, Bul. 11. APPENDIX TABLE 3. NUMBERS OF BEEF CATTLE, COMMERCIAL BROILERS, AND HOGS ON ALABAMA FARMS, JANUARY 1952-1961 ~rii 1952 1953- Year Beef cattle I1,000 Commercial broilers I Hogs :O le= head - 1,086 19541955195619571958195919601961- --- - -- 1,314 1,471 - 1,426 1,363 1,380 1,000 birds 23,484 28,416 47,739 .57,764 82,473 103,875 131,640 1,000 head 1,200 1,032 877 947 1,061 -- -- - - - -- -- - - -- - 1,373 1,347 1,386 1,394 U )IVI 158,248 176,654 198,036 III \1~I1LI~I 1I 1 1,029 988 978 1,144 972 Source: Alabama Agricultural Statistics, Alahama Crop and Livestock Reporting Service, Bul. 11. 26 APPENDIX TABLE 4. ALABAMA AGRICULTURAL EXPERIMENT STATION TYPES REPORTING BY STORAGE 1960 NUMBER OF PRIMARY FIRM CAPACITY AND TYPE, ALABAMA, Primary firm types Range 1,000 bushels 0-100--- Type Elevator Feed manufacturer Feed er Custom grinder Bulk Sack Total Bulk Sack Total Bulk Sack Total Number Number Number Number Number 9 27 27 30 15 27 21 27 9 15 15 30 27 80 15 5 3 8 2 3 5 101-250 ------------- . ------ 2 3 5 0 0 0 0 0 0 1 1 1 251-500 ---- - 501-1000- - Bulk Sack Total 1001-over- - Bulk Sack Total 1 1 1 1 APPENDIX TABLE 5. CORN: TOTAL VOLUME REPORTED RECEIVED BY FIRMS FROM ALL POINTS OUTSIDE THE STATE, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Year and method Origin Truck 1,000 bushels 1,223 165 395 431 0 2,214 18 1959 Rail 1,000 bushels 2 0 7,552 0 65 260 7,879 43 Water 1,000 bushels 6,582 0 46 534 897 0 8,059 44 Truck 1,000 bushels 2,630 272 221 0 436 0 3,559 25 1960 Rail Water 1,000 1,000 bushels bushels 0 6,183 0 0 0 2,594 550 59 723 15 86 284 7,542 2,952 21 54 Illinois Indiana Iowa Kentucky Missouri Tennessee Total Per cent ----0 -- GRAIN MOVEMENTS in ALABAMA 27 APPENDIX TABLE 6. SOYBEANS: TOTAL VOLUME REPORTED RECEIVED BY FIRMS FROM ALL POINTS OUTSIDE THE STATE, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Year and method Origin Truck 1,000 bushels Illinois--. Iowa Total-Per cent 0 910 910 9 1959 Rail 1,000 bushels 0 8,202 8,202 .77 Water 1,000 bushels 1,487 0 1,487 14 Truck 1,000 bushels 0 1,990 1,990 19 1960 Rail 1,000 bushels 0 5,852 5,852 56 Water 1,000 bushels 2,691 0 2,691 26 APPENDIX TABLE 7. WHEAT: TOTAL VOLUME REPORTED RECEIVED BY FIRMS FROM ALL POINTS OUTSIDE THE STATE, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Year and method Origin Truck 1,000 bushels Illinois Iowa Kansas KentuckyMinnesota Missouri Nebraska-. TennesseeTotal Per cent ----- 1959 Rail 1,000 bushels 0 4,451 60 43 4 90 20 89 4,757 58 Water 1,000 bushels 1,605 0 105 0 337 847 220 0 3,114 38 Truck 1,000 bushels 0 531 0 0 0 5 0 6 542 9 1960 Rail 1,000 bushels 0 3,276 0 0 0 146 0 Water 1,000 bushels 523 0 0 92 260 1,086 46 0 1,957 33 - 0 347 0 0 0 5 0 0 352 4 30 3,452 58 APPENDIX TABLE 8. OATS: TOTAL VOLUME REPORTED RECEIVED BY FIRMS FROM ALL POINTS OUTSIDE THE STATE, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Year and method Origin Truck 1959 Rail Water 1,000 bushels 794 0 0 0 124 0 918 44 Truck 1,000 bushels 10 1 0 652 685 0 1,348 79 1960 Rail 1,000 bushels 0 0 0 0 0 2 2 -- Water 1,000 bushels 195 0 188 0 0 26 359 21 1,000 1,000 bushels bushels -----Illinois ------------Iowa ---------------- . Minnesota -------------Mississippi Missouri -- Tennessee Total-------Per cent -42 10 1 0 163 700 0 874 0 181 0 0 0 98 279 13 28 . ALABAMA AGRICULTURAL EXPERIMENT STATION 28 ALABAMA AGRICULTUA EPRMETSTTO FIRMS APPENDIX TABLE 9. CORN: TOTAL VOLUME REPORTED SHIPPED BY TO ALL POINTS OUTSIDE THE STATE, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Year and method Destination Truck 1959 Rail Water Truck 1960 Rail Water 1,000 1,000 1,000 1,000 1,000 1,000 bushels bushels bushels bushels bushels bushels 152 0 0 180 .----------------------------Florida 1,110 0 0 Georgia______________________________ 1,232 57 0 0 31 Louisiana___________________________ 3 0 0 131 Mississippi_________________________ 81 25 0 0 Tennessee__________________________ 1,403 25 0 1,574 Total -----------------------------Per cent 2 98 ------------------------95 0 0 0 0 0 0 0 0 0 0 70 70 -5 TYPE, APPENDIX TABLE 10. NET GRAIN IMPORTS BY GBAIN ALABAMA, 1959 AND 1960 Year and type of shipments Type 1959 Inship- Outshipments ments Net 1960 Inship- Outshipments ments Net 1,000 1,000 1,000 1,000 1,000 1,000 bushels bushels bushels bushels bushels bushels Corn-----------------Soyheans ______________ Wheat ._______________ 18,152 1,599 16,523 14,053 1,474 12,579 10,600 8,223 2,071 246 39,292 404 292 5 0 2,300 10,196 7,931 2,066 246 36,992 10,533 5,952 1,709 246 32,493 176 192 20 0 1,862 10.357 5,760 1,689 246 30,631 Oats-----------------Grain sorghum--------- Total --------------- APPENDIX TABLE 11. NUMBER OF FIRMS EQUIPPED TO HANDLE SPECIFIED METHODS OF TRANSPORTATION FOR RECEIPTS AND SHIPMENTS, BY PRIMARY FIRM TYPE, ALABAMA, 1960 Receipts Firm type Shipments Rail Box car Hopper car Rail Box car Hopper Truck Water car Truck Water No. Elevator-- No. 3 9 3 No. 30 33 30 30 15 138 No. 4 2 Feed manufacturer. Feed mixer. ------ 7 18 12 6 No. 7 15 12 6 No. 4 No. 30 No. 4 1 6 3 3 16 33 27 30 15 135 Custom grinder---. Other--- TOTAL------ ----------------43 15 6 40 5 GRAIN MOVEMENTS in ALABAMA 29 APPENDIX TABLE 12. GRAIN: TOTAL VOLUME REPORTED RECEIVED BY FIRMS FROM ILLINOIS, IOWA, AND MISSOURI, BY METHOD OF TRANSPORT, ALABAMA, 1959 AND 1960 Method State Illinois 1,000 bushels 3,873 2 20,060 - Iowa 1,000 bushels 4,395 32,108 46 36,549 55 Missouri 1,000 bushels 2,262 316 3,627 6,205 9 Total 1,000 bushels 10,530 32,426 23,733 66,689 100 Truck ---Rail WaterTotalPer cent -- 23,935 36 APPENDIX TABLE 13. PERCENTAGE OF GRAIN RECEIVED BY EACH TYPE OF MOTOR CARRIER, ALABAMA, 1960 Item Type of carrier Common Merchant Exempt SelfTotal carrier trucker carrier owned Per cent Per cent Per cent Per cent Per cent 0 N/A 0 N/A 0 0 0 44 N/A 100 67 N/A 1 0 0 0 6 N/A 0 12 N/A 57 66 70 0 50 N/A 0 21 N/A 42 34 30 0 100 100 100 Receipts Corn............. Soybeans 1 Wheat Oats -0 Grain sorghum Shipments Corn -----Soybeans Wheat -0 Oats2 SNot 2 100 100 100 0 reported because there was only one processor in the State. None shipped. 30 30 ALABAMA AGRICULTURAL EXPERIMENT STATION APPENDIX TABLE 14. NUMBER OF PRIMARY FIRMS INDICATING CHANGES IN PURCHASES AND SALES OF GRAIN TO TRUCKERS BY FIRM TYPE AND PERCENTAGE CHANGE, 1955 TO 1960 Firm type Firmtype Percentage Bought Sold No InDeNo Inchange crease crease change crease Decrease No. 16 Elevator__________________ Less than 10 10-24 25-49 More than 49 11 Feed manuLess than 10 facturer______________- 10-24 No. 1 1 No. No. 17 No. 1 No. 1 14 6 3 3 1 12 25-49 More than 49 Feed mixer --6 than 10 10-24 25-49 More than 49 Less 3 7 6 6 6 3 3 6 3 6 3 3 Custom Less than 10 grinder________________ 10-24 25-49 More than 49 Other---------------------Less than 10 10-24 25-49 More than 49 6 APPENDIX TABLE 15. ESTIMATED TRUCK RATES PER BUSHEL FOR CORN FROM SELECTED MIDWEST POINTS TO SELECTED ALABAMA POINTS, JANUARY 1, 1960 OrgnBirmingham Destination Cuntersville Montgomery Cents Cairo, Cents 15.13 Cents 21.04 Illinois ---------------------- 17.48 Chicago, Illinois_____________________ Davenport, Iowa_____________________ Kansas City, Missouri________________ Louisville, Kentucky_________________ Peoria, Illinois____________-__________ St. Louis, Missouri___________________ 28.03 30.39 30.21 17.88 26.73 22.12 24.95 27.49 29.77 14.80 26.62 22.67 31.55 33.94 33.04 21.40 30.39 25.71 Source: Rates computed from the function C= 4.36288 + .036148X and distances derived from official highway maps. GRAIN MOVEMENTS in ALABAMA 31 GRAIN MOVEMENTS in ALABAA3 APPENDIX TABLE 16. RAIL RATES PER BUSHEL FOR CORN FROM SELECTED POINTS IN THE MIDWEST TO SELECTED ALABAMA POINTS, JANUARY 1, 1960 OriginDestination Birmingham Guntersville Montgomery Cents Cents Cents 21.84 20.16 17.92 Cairo, Illinois________________________________ 36.96 36.96 __ Chicago, Illinois ---------------------------- 40.88 35.56 33.88 31.08 Kansas City, Missouri------------------------------24.64 20.72 20.72 Louisville, Kentucky-------------------------------40.04 37.80 36.12 Peoria, Illinois----------------8--St. Louis, Missouri________________________________ 24.08 25.20 26.88 Source: Navigation Economics Branch, Tennessee Valley Authority, Knoxville, Tennessee. APPENDIX TABLE 17. BARGE RATES PER BUSHEL FOR CORN FROM SELECTED POINTS IN THE MIDWEST TO GUNTERSYILLE, ALABAMA, JANUARY 1, 1960 Origin Rate Cents Cairo, Illinois6-----------.33 10.44 Chicago, Illinois--Davenport, Iowa-------------------------------10.42 13.58------------------Kansas City, Missouri .98-Louisville, Kentucky Peoria, Illinois8.40------St. Louis, Missouri69----------------Source: Guide to Published Barge Rates On Bulk Grain, (Schedule No. Arrow Transportation Company, Sheffield, Alahama. 3), 1 APPENDIX TABLE 18. ESTIMATED TRANSPORTATION RATES PER BUSHEL CORN FROM SELECTED POINTS IN THE MIDWEST TO BIRMINGHAM, FOR ALABAMA, JANUARY 1, 1960 OrgnTruck Cents Cairo, Method Rail Cents 17.92 Barge-Truck Cents 19.16 Chicago, Illinois--------------------Davenport, Iowa-------------------Kansas Peoria, Illinois ----------------------- 17.48 28.03 30.39 26.73 36.96 City, Missouri---------------Louisville, Kentucky_________________ 23.25 24.08 22.12 St. Louis, Missouri .----------------1 Barge rate to Guntersville plus 12.83 cents trucking, handling, and merchandising charges to Birmingham. Of this total amount, trucking accounted for 6.83 cents. Illinois ---------------------- 30.21 17.88 31.08 20.72 36.12 ---- 23.27 23.25 26.41 20.81 21.23 32 APPENDIX TABLE CORN FROM ALABAMA AGRICULTURAL EXPERIMENT 19. ESTIMATED TRANSPORTATION SELECTED POINTS IN THE STATION FOR RATES PER BUSHEL TO GUNTERSVILLE, MIDWEST ALABAMA, BY METHOD OF TRANSPORTATION, JANUARY 1, 1960 OriginMethod Truck Cents Rail Cents 20.16 36.96 33.88 20.72 37.80 25.20 Barge Cents 6.33 10.44 10.42 13.58 7.98 8.40 6.69 FOR Cairo, Illinois 15.13 Chicago, Illinois_____________________________ 24.95 Davenport, Iowa____________________________________ 27.49 Kansas City, Missouri 29.77 Louisville, Kentucky 14.80 Peoria, Illinois________________________________ 26.62 St. Louis, Missouri________________________________ 22.67 APPENDIX TABLE 20. ESTIMATED TRANSPORTATION CORN FROM SELECTED POINTS IN THE RATES PER BUSHEL TO MONTGOMERY, MIDWEST ALABAMA, BY METHOD OF TRANSPORTATION, JANUARY 1, 1960 Origin Truck Method Rail Barge-Truck' Cents Cents Cents Cairo, Illinois 21.04 21.84 22.53 Chicago, Illinois 31.55 40.88 26.64 Davenport, Iowa 33.94 26.62 Kansas City, Missouri 33.04 35.56 29.78 Louisville, Kentucky 21.40 24.64 24.18 Peoria, Illinois 30.39 40.04 24.60 St. Louis, Missouri 25.71 26.88 22.89 1 Barge rates to Guntersville plus 16.2 cents trucking, handling, and merchandising charge to Montgomery. Of this total amount, trucking accounted for 10.2 cents.