The paper reports on a study to illustrate use of the capital budgeting approach and major considerations in determining costs of alternative on-farm grain drying and storage systems; and to illustrate how annual costs of on-farm grain systems are affected by multiple usage. A computer model was used to perform capital budgeting analysis to determine annual per bushel costs associated with five alternative on-farm grain drying and storage systems. Results indicate that per bushel costs decrease as on-farm grain systems handle multiple grains instead of all corn.
