Grain Elevator 6


Grain Elevator 6 :

History: Currently, Enid, Oklahoma, holds the title of most grain storage capacity in the United States. In farming communities, each town had one or more small grain elevators that would serve the local growers. The classic grain elevator was constructed with wooden cribbing and had nine or more larger square or rectangular bins arranged in 3×3 or 3×4 or 4 ×4 or more patterns. Wooden cribbed elevators usually had a driveway with truck scale and office on one side, a rail line on the other side and additional grain storage annex bins on either side. In more recent times with improved transportation, centralized and much larger elevators serve many farms. Some of them are quite large. Two elevators in Kansas (one in Hutchinson and one in Wichita) are half a mile long. The loss of the grain elevators from small towns is often considered a great change in their identity, and there are efforts to preserve them as heritage structures. At the same time, many larger grain farms have their own grain handling facilities for storage and loading onto trucks. Grain elevator operators buy grain from farmers, either for cash or at a contracted price, and then sell futures contracts for the same quantity of grain, usually each day. They profit through the narrowing basis, that is, the difference between the local cash price, and the futures price, that occurs at certain times of the year. Before economical truck transportation was available, grain elevator operators would sometimes use their purchasing power to control prices. This was especially easy since farmers often had only one elevator that was within a reasonable distance of their farm. This led some governments to take over the administration of grain elevators. An example of this is the Saskatchewan Wheat Pool. For the same reason, many elevators were purchased by cooperatives

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