The story behind the WSJ’s story of a cast-off elevator in Burlington, Colo.

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By Ronald Ahrens

From reading Wayne G. Broehl, Jr.’s huge history of Cargill, I’ve become alert to other news about the grain-trading behemoth. So a Wall Street Journal article, titled “Growers’ New Clout Tilts Farm Economy,” caught my eye on Aug. 16 

“Powerful farmers push Cargill, ADM for better prices, and may soon compete,” the sub-headline reads.

According to Jacob Bunge’s story, several factors have risen in importance to give large farmers more leverage.

One is that farmers have more storage capacity for their grain. They don’t have to sell soon after harvest, going to the local elevator and accepting the current price.

A second factor is more options for direct sale of crops to stock feeders or ethanol plants.

And like everything else, there’s a digital aspect. “Venture capital-backed startups are developing services that scan a wider range of grain buyers or connect farmers directly with food makers,” Bunge reports.

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Bunge’s story in the Journal tells of a Cargill grain buyer who “said his job got harder still after Cargill in 2016 sold the Burlington, Colo., grain elevator–and later, nearby cattle feedlots that were reliable destinations for the grain grown by many of [the buyer’s] contacts.”

Here we skidded to a stop. Burlington, Colo., is in the records of Tillotson Construction Co. My uncle, Charles J. Tillotson, worked on Burlington and recalls a 1950 incident there involving a train and cement mixer. The locomotive derailed, but no one was injured.

The 300,000-bushel Burlington elevator had eight tanks of 20 feet in diameter and 115 feet in height. It was a twin-leg elevator with a pit 19 feet deep. The cupola measured 23 feet wide, 63.75 feet long, and 44 feet high. Pulley centers were 168 feet apart.

Could this be the same elevator Cargill sold two years ago? The big company has “divested itself of some far-flung grain elevators that aren’t near a railroad or river.”

And Bunge recounts another marvel: the anecdote concerns an Illinois farmer–one who tills 9,000 acres and rents out 5,000 more–who partnered with another farmer to buy a 750,000-bushel Cargill elevator. 

If they don’t find it too expensive to operate and insure, dispatching large quantities of grain when and where they want will be a challenge for Cargill and ADM to face.

 

Book report, Part One: Cargill’s first elevators and the blind-horse phenomenon

By Ronald Ahrens

Good fortune has led to my acquiring a copy of Cargill: Trading the World’s Grain, by Wayne G. Broehl, Jr., published in 1992. I got a like-new copy on Amazon for (he goes to the closet to consult credit card records) $7.99—a screamin’ deal.

The massive, 1,007-page book is just part one of Prof. Broehl’s ambitious and masterful history of Cargill—the company let him look at everything, and the reader is left with a detailed account that’s also based on public sources as specific as records on local water wells.

Reading this behemoth will be like skinning a whale with a pocket knife, but as I progress you can look for periodic posts showing what I’ve learned.

Cargill 01In this volume Prof. Broehl starts with Will Cargill’s reaching his majority after the Civil War. As a young man, Cargill showed a disposition for trading grain. It led to a few elevators but also many “flathouses.” These single-story warehouses proliferated along the railroad tracks in northeastern Iowa and southern Minnesota, where Cargill got his start; they could hold a lot of grain but of course they were subject to fire.

Not only could a flathouse burn down in an instant, but other misfortunes could strike.

“This particular spring of 1874 produced a string of bad luck for Will Cargill; in May, his Albert Lea [Minn.] warehouse collapsed, spilling some 2000 bushels of grain,” the professor tells us.

If that had been the season’s lone calamity, Cargill would have gotten off easy. “It had hardly been cleaned up when reports reached Will that another warehouse, at Ridgeway, Iowa, had burned to the ground, ‘the only piece of property which he had neglected to insure…”

Near Austin, Minn., Cargill lost another flathouse “after a couple of years by overloading.” He built an 18,000-bushel elevator with an eight-horsepower steam engine providing the power.

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Screen shot from the Northwestern Miller. Wikimedia Commons say, “The Northwestern Miller (1880–1973) was a periodical founded by the Miller Publishing Company of Minneapolis, Minnesota. A trade publication for the grain and flour industry, it also published short fiction.”

Yes, besides flathouses, we learn of “elevator[s] with power machinery for elevating grain, like the large Cresco [Iowa] operation of Beadle & Slee. “By this time, however, elevating mechanisms were more widespread, sometimes simple ‘cup and belt’ devices run by a horse led in a circle, a ‘blind horse’ elevator, so-called. An old-timer recounted how one elevator ‘had a whip attached above the horse, and there was a hole in the wall where the men … could holler down and the horse … and a string attached to the whip so they could pull and hit the horse.”

Seeking more information about blind-horse elevators I went online and found this passage from the Northwestern Miller as reported in Volume 47, published May 24, 1899:

“By some happy, or otherwise, chance, it was discovered that a blind horse will keep on in his circular path, never seeming to know that he isn’t going anywhere, nor can he tell when the man in charge is out of sight. The poor brute will follow his halter around his little circle from noon till night, thinking all the time that he is getting along in the world.

“This set the elevator men thinking with the result that the blind-horse market immediately began to pick up. Poor old blind nags in the Dakotas, Minnesota, and Iowa were surprised to find themselves in demand. Instead of being allowed to die peacefully in pastures and their bones to be forgotten, they were sought after with an eagerness that made them feel there was really some distinction in being blind. It was not unusual, a few years ago, for an elevator company to buy up a carload of blind horses in Iowa and ship them into Minnesota or the Dakotas. But that time has passed and the day of the blind horse is nearly over. Even now, in the odor of gasoline he can smell, if he can’t see, his finish.”

Blind horses happily acceded this odious role to power machinery. Steam engines producing up to 10 horsepower were used to drive the machinery, and they allowed for construction of larger elevators. In 1873—the year of a financial panic as well as a grasshopper plague—Cargill “decided to increase his operations along the McGregor Western tracks and contracted for a large elevator at Cresco. Its total cost eventually came to over $12,000.”

Anyone who wants to read along will find passages of the book online, thanks to Google Books.

A small Missouri company has big plans for idle elevators to serve as vertical farms

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Vertical Innovations’ first vertical farm is planned for this elevator. Photos courtesy of Vertical Innovations.

By Ronald Ahrens

Jim Kerns and David Geisler called up the other day from Springfield, Missouri, to ask a question of our readers: Are you aware of any municipally owned, abandoned grain elevators?

Kerns and Geisler run Vertical Innovations, an enterprise formed in December of 2014 to repurpose old elevators, making them into incredibly productive vertical farms for growing leafy green vegetables. They have developed a patent-pending method of hydroponic production, a “structure-driven design” that adapts to the circular shapes.

“The silos tell us what to do,” said Kerns, who has a background in organic farming and leads the company’s innovation, design and construction efforts. “I see them as giant environmental control structures, giant concrete radiators.”

Significant energy savings can result from implementation of circular shapes, which among other things require far less lighting and the corresponding energy use, he said.

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Jim Kerns explores elevator guts.

David Geisler, CEO and general counsel, has worked out a lease for a disused elevator in downtown Springfield.

For its next steps, the company has targeted an available elevator in South Hutchinson, Kan., and approached the owner of Tillotson Construction Co.’s Vinton Street elevator in Omaha.

“What an awesome facility,” Geisler wrote in a follow-up email, thinking of Vinton Street.

Geisler and Kerns have cast their eyes far beyond the Midwest, though, from big terminals in Buffalo, N.Y., to San Francisco’s threatened Pier 92.

“We really need to save that facility if it’s structurally sound,” Kerns said. “It could put out about 50 million pounds of green leafy vegetables per year.”

Pier 92 San Francisco (1)Their most unique discovery source is YouTube videos posted by those who have flown drones around elevators.

But word-of-mouth works, too, and Kerns issues this appeal to readers: “Submit to us pictures and locations of concrete grain terminals in good condition all across the United States, sea to shining sea, north to south.”

Vertical Innovations can be contacted through its website.