By Ronald Ahrens with Brad Perry

By one analysis, the trend nowadays is toward a leaner connection between farmers and export markets. By loading grain-only unit trains at facilities close to home, farmers can avoid the step of sending their grain to terminal elevators in port cities. Here, contributor Brad Perry taps his career in banking and finance to share some reflections on the increasingly large scale of elevator facilities in keeping with demand for more efficient grain handling.

Brad: Through the 1970s, we were still building 250,000-bushel workhouses and 500,000-bushel annexes, with 18- to 24-foot-diameter bins. These were being built by Jarvis, Quad States, Jordan, Mid States, and a few others. That makes me really appreciate the 354,000-bushel houses your family built in 1954. 

Ronald: They built 350,000 bushels at Farnsworth, Tex. in 1946!

Brad: Farmers Coop Business Association, of Shelby, Neb. built maybe the first “corn-soybean” elevator in Nebraska. It had 750,000 bushel capacity, four tanks measuring 48 feet in diameter with interstices. It was designed for export unit-train loading. This was followed by the Tamora-Staplehurst Cooperative (in Seward County, Neb.) building a 1-million-plus-bushel facility. After that, it took us a while, but we figured out that larger bins maybe made sense! Now as you look across Iowa, Nebraska, Minnesota and South Dakota, you see 105-foot-diameter steel bins of 750,000-bushel capacity and now 120-foot-diameter bins (1.2 million plus). For concrete, Tamora, Neb. is a great example. Hooked to the elevator is a 400,000-bushel tank, a 600,000-bushel tank, and now a 1-million-bushel tank. 

Brad: It’s been much more difficult for Kansas cooperatives to unify for the benefit of their producer-owners. There are several reasons including the terminal grain structure. There is plenty of shipping capacity for trains in Kansas, but it’s at the terminal rather than close to the producer. This has been changing with the new shuttle loaders that have been built in the state. Some of the most significant ones (Courtland, Frankfort, Hanover, Canton) were either built by Nebraska cooperatives or as joint ventures with larger companies.

Ronald: I’m turning to the internet for a definition: A shuttle loader is a high-capacity industrial machine used to rapidly transfer bulk materials such as grain into 100-car freight trains. Here’s the link to a scholarly paper co-authored by CoBank Research Fellow Mykel Taylor of Kansas State University that addresses the question of efficiency.

Brad: I was involved with four grain-marketing LLCs and joint ventures where several cooperatives combined their grain operations into a single license. A central staff did all of the merchandising, set the bids, did the grain accounting and managed grain flows. Net grain revenues were then passed back to the member-owner cooperatives based on bushels handled at each facility. These organizations were AgMark at Concordia, Kan., Team Marketing at Moundridge, Kan., CoMark in southern Kansas, and Equity Marketing Alliance at Enid, Okla. AgMark still exists, with CVA (Central Valley Ag) at York, Neb. as the dominant owner. Team Marketing has dissolved. CoMark and Equity Marketing have merged. In hindsight, while the groups substantially improved producers’ grain bids and cooperative earnings, they also allowed the member-cooperatives to resist change.

Ronald: What strikes me is that the elevators themselves are the emblems of these organizations that otherwise have few physical manifestations.

Brad: There was another joint marketing group proposed for western Kansas. This included the cooperatives at Syracuse, Johnson, Elkhart, and Ulysses. The entity that materialized from those discussions was similar … but different. ADM Grain got involved and a whole new structure evolved that included the cooperatives (less Elkhart) and what were ADM/Collingwood facilities in western and southwestern Kansas. This included the ADM facilities in Johnson’s trade area, and a bunch further south, including Hugoton, the seat of Stevens County. Over time, several more cooperatives merged in.

Brad: I was told once that it took as many as 12 employees to load a train at one of the monster Kansas terminals. That means one in the locomotive or a smaller car mover; another two or three opening and then closing car hatches; two others in the headhouse running a hopper scale that prints tickets; a grader; one boss supervising everything; and at least four on bicycles in the tunnel beneath the storage annex. The tunnel guys are getting their instructions via radio from the boss, and being told, “Crack open bin 118 a quarter turn.” They are actually blending coming out of the annex bins onto the belt.  It takes several days to load a 110-car train out of most of these monsters.

Ronald: You had mentioned in a previous discussion that, at the country elevators, it was a couple of boxcars at a time.

Brad: Modern train loaders? Three or maybe four employees load a 110-car train in 12 hours. There’s one in the locomotive, one or 2 opening and closing hatches, and one in a control booth half-way up the side of the elevator. If it’s being shipped with origin USDA grades, then there is also a USDA grader on site. The employee in the booth is controlling the entire elevator— legs, gates, conveyors, etc.

Ronald: In a photo I took at Springfield, Colo., I didn’t know what to call the grotesque appendage at the end of the annex, marring the beautiful Tillotson elevator. This appendage incorporated a booth. You informed me it was for grain loading.

Ronald: You were impressed when reader Michael Petersen utilized AI to I.D. the unlabeled photo of an elevator, which turned out to be Tillotson’s job at Helena, Okla.

Brad: Glad the Helena mystery was solved!  I looked— been there but didn’t have any pictures. The current view from Google Earth is very typical of Kansas and Oklahoma elevators. The co-op added a McPherson jump-form tank at the end and put a leg and another dump between the annex and McPherson tank. The tank is probably 200,000 to 250,000 capacity. I’m betting the leg is either 7,500 or 10,000 bushels per hour.

Ronald: Some additional students of the construction record shows that Tillotson returned twice to Helena, each time to build more storage.

Brad: This high-speed approach has been both good and bad. It’s the standard approach that companies like Scoular have used to upgrade to shuttle-train-loading capability. In their case, it’s normally a 30,000-bph leg with a bulk weigher.  You can see this at Downs, in north-central Kansas, Venango in southwestern Nebraska, and additional locations. The bad side is, many slip-formed tubes weren’t designed with enough bearing pressure for this speed of loading. I’ve seen major holes blown right out through the side of the tube that these higher capacity legs were dumping into.