Economic and Marketing INFORMATION
FOR
INDIANA
FARMERS
Prepared  by  Members  of the  Agricultural  Staff  of  Purdue University, Lafayette, Indiana. December 28, 1954.
A Grain dryer
May Boost Your Marketing Returns
By
MILTON M. SNODGRASS and LOWELL S.  HARDIN, Agricultural Economics
WHAT DOES farm drying of
grain cost? How do added returns stack up with increased expenses when you dry artificially?
To get answers to these questions,
78 Indiana farmers gave us their 1953
drying records.* They used four types.
Type A—Heated air dryers for
shelled corn and/or wheat.
Type B—Heated air dryers for
ear corn.
Type   C—Forced   unheated   air
dryers for ear corn.
Type D—Forced unheated air
dryers for shelled corn, wheat.
For many of these farmers, moisture discounts or docks avoided were
greater in total than were the costs
of drying. And 1953, like 1954, was a
good season with favorable field drying weather.
This doesn't mean that you should
rush into the purchase of a dryer.
^ince the savings shown are the difference between costs of drying and
Based on findings in Purdue Experiment
Station Research Project 690.
To George H. Foster, U.S.D.A. Engineer
at Purdue goes acknowledgment for
technical assistance, secondary data, and
active cooperation in the conduct of this
research project.
the discounts avoided, these savings
will mean more to farmers who sell
grain than to those who don't. A
change in the discount schedule would
change the possible savings. But,
whether you feed grain or not, you
can use these findings to help you figure whether a dryer will pay on your
farm.
Here, based on the experience of
the 78 farmers surveyed and the research of agricultural engineers, is
one way to determine probable costs
and returns from drying.
The Value of Dry over Wet Grain
First, how much more is dry grain
worth on the market? You can figure
it this way: Suppose you have the
equivalent of 560,000 pounds of shelled corn, 22 percent moisture. At this
moisture level, 61 pounds of shelled
corn are required to yield a bushel
Table 1. Pounds of Grain Required
to Yield 56 Pounds of Shelled Corn
at 15.5 Percent Moisture or 60
Pounds of Wheat at 14 Percent
Moisture.
Percent
Pounds of
Kernel
Ear Corn
Shelled
Moisture*
No. 2 Bu.t
Corn±
Wheats
14.0
65.7
54.7
60.0
15.5
67.3
56.0
61.1
16.0
. 67.7
56.6
61.4
18.0
70.1
58.0
63.0
20.0
72.7
59.5
64.5
22.0
75.5
61.0
66.2
24.0
78.2
62.6
68.0
26.0
81.0
64.3
69.8
28.0
83.7
66.1
71.7
30.0
86.7
68.0
73.7
32.0
89.6
70.0
75.9
* Percent  wet   basis.
t From Schmidt, J.  L., "How to Reduce Ear Corn
to Bushels of Shelled Corn," Ag. Eng., Vol. 29,
July   1948,   Adapted   from   Figure   2,   Assumed
Corn   Characteristic   Index   of   5.
i Based on Minary Tables, including moisture loss
and V2 of 1% dry matter loss.
§ Based on Table 2, Leaflet 331, "Drying Shelled
Corn    and    Small    Grain    with    Heated    Air,"
U.S.D.A.,   September,   1952.
Table 2.  A Corn  and  Wheat Discount Schedule Used in Indiana for
1953.*
Corn
Wheat
Corn
Percent
Percent
Cents
moisture*
Cents per bu.i
moisture*
per bu.:'.
14.0
0
0
19.6-20.0
13V2
14.1-14.5
0
4
20.1-20.5
15V2
14.6-15.0
0
8
20.6-21.0
171/2
15.1-15.5
0
12
21.1-21.5
19V2
15.6-16.0
V/2
17
21.6-22.0
211/2
16.1-16.5
3
22
22.1-22.5
23V2
16.6-17.0
4V2
27
22.6-23.0
25V2
17.1-17.5
6
§
23.1-23.5
28
17.6-18.0
7V2
23.6-24.0
301/2
18.1-18.5
9
24.1-24.5
33
18.6-19.0
IOV2
24.6-25.0
35V2
19.1-19.5
12
Over
25.0
2 Vic ea.
* Provided   by   grain   buyers  in   Indiana.
f Percent  wet  basis.
i Depending upon local elevator policy, a bushel
of grain is commonly defined here as 56 pounds
of shelled corn, 70 pounds of ear corn, or 60
pounds of wheat irrespective of the moisture
content.
§ No discounts listed above 17 percent for wheat.
(56 pounds) at 15.5 percent (Table
1). For ear corn, 75.5 pounds at 22
percent moisture are required to yield
a bushel. So when you divide 560,000
by 61, you get about 9,180 bushels
of dry corn which will bring the full
market price. At $1.50 per bushel,
the value is $13,770.
Second, as wet, undried corn,
560,000 pounds are worth $12,850 at
the elevator (560,000 + 56 pounds
—elevator definition of bushel—times
$1.28V£, elevator's discount price for
56 pounds at 22 percent—Table 2).
Thus, the cash value of the dry
over the wet grain is $920 in this instance ($13,770 minus $12,850). You
can use this method with wheat or a
combination of corn and wheat by
figuring each grain separately and
adding the results. Your moisture
conditions, market prices, and discount schedules may be different. If
so, use them.