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Own Grain Storage Structures: Is It Worth Investing?


 
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1. Title Title of document Own Grain Storage Structures: Is It Worth Investing?
 
2. Creator Author's name, affiliation, country Elisangela Domingues Vaz; Federal University of Grande Dourados (UFGD), Brazil.; Brazil
 
2. Creator Author's name, affiliation, country Régio Marcio Toesca Gimenes; Federal University of Grande Dourados (UFGD), Brazil.; Brazil
 
2. Creator Author's name, affiliation, country João Augusto Rossi Borges; Federal University of Grande Dourados (UFGD), Brazil.; Brazil
 
2. Creator Author's name, affiliation, country Rafael Todescato Cavalheiro; Federal University of Grande Dourados (UFGD), Brazil.; Brazil
 
2. Creator Author's name, affiliation, country Andréia Maria Kremer; Federal University of Grande Dourados (UFGD), Brazil.; Brazil
 
3. Subject Discipline(s)
 
3. Subject Keyword(s)
 
4. Description Abstract

Grain storage is strategic for agribusiness and therefore, it is important to consider the usefulness and benefits of its implementation. This study aims to identify the economic and financial viability of investing in grain storage structure at farm level using capital budgeting techniques. Considering the particularities of farms in the Midwest region of Brazil, the following investment valuation techniques were used: Net Present Value (NPV), Equivalent Uniform Annual Worth (EUAW), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Discounted Payback (DP), Profitability Index (PI), Benefit/ Cost Ratio (B/C), Sensitivity Analysis and Monte Carlo simulation. The results of NPV and EUAW were positive. The results of IRR was 14.08% and MIRR was 11.39%, with a payback of 11.81 years, an PI of US$ 1.31 and a B/C ratio of 3.16. From the risk analysis, it can be inferred that the investment is low risk since there is a 99.97% probability of NPV being greater than zero. Therefore, grain storage is a potentially viable alternative for increasing the competitiveness and wealth of Brazilian farmers, even in the context of an emerging economy.

 
5. Publisher Organizing agency, location Macrothink Institute
 
6. Contributor Sponsor(s)
 
7. Date (YYYY-MM-DD) 2020-03-02
 
8. Type Status & genre Peer-reviewed Article
 
8. Type Type
 
9. Format File format PDF
 
10. Identifier Uniform Resource Identifier https://www.macrothink.org/journal/index.php/jas/article/view/15704
 
10. Identifier Digital Object Identifier (DOI) https://doi.org/10.5296/jas.v8i2.15704
 
11. Source Title; vol., no. (year) Journal of Agricultural Studies; Vol 8, No 2 (2020)
 
12. Language English=en en
 
13. Relation Supp. Files
 
14. Coverage Geo-spatial location, chronological period, research sample (gender, age, etc.)
 
15. Rights Copyright and permissions Copyright (c) 2020 Elisangela Domingues Vaz, Régio Marcio Toesca Gimenes, João Augusto Rossi Borges, Rafael Todescato Cavalheiro, Andréia Maria Kremer
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.