Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Case Study

The Feasibility of Investing in a High-Speed Grain-Handling Facility in Kansas

Pedro Masi and Keith Harris
Kansas State University

JEL Codes: Q13, Q14
Keywords: Shuttle loader, grain-handling facility, investment, rural development, agricultural finance

Publish Date: March 30, 2021
Volume 3, Issue 1

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Abstract

Rural communities often combine quantitative and qualitative approaches to determine which investments can be supported by the local economy. In this case study, the goal of an economic development council (EDC) in rural Kansas was to promote economic and population growth by making the best use of the local resources. From a list of potential investment projects, the EDC identified a high-speed grain-handling installation as an opportunity to facilitate local economic growth. A community leader then had to determine whether an investment in such a facility was financially feasible for the community. This case study emphasizes the applied financial analysis methods used to make investment decisions about rural projects. It presumes a variable mix of historical grain prices and local grain production to project the most likely profit outcome. Thus, it helps inform investment decision of the EDC and county commissioners.

About the Authors: Pedro Masi is a Graduate Student in the Department of Agricultural Economics at Kansas State University (Corresponding author: pmmasi@ksu.edu). Keith Harris is an Associate Professor in the Department of Agricultural Economics at Kansas State University.

Copyright is governed under Creative Commons CC BY-NC-SA

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