Effects of Insect Infestation of Farm-Stored Wheat on Its Sale Price at Country and Terminal Elevators

Abstract

The relationship between sample characteristics and the likelihood of a price discount was examined for samples of farm-stored wheat taken as it was delivered for sale to elevators in Kansas during 1986 and 1987. Lower test weight, as well as increased grain moisture and dockage content, increased the likelihood of a price reduction. The presence of insects, however, was significantly associated with the probability of receiving a discount only at terminal elevators. Although the likelihood and value of price discounts were more predictable at terminal than at country elevators, only about 20% of the overall variability in discounts was explained by sample characteristics. The cost of price discounts risked because of the presence of live insects at the time of delivery to elevators was 73.5¢/metric ton (t) (2.0¢/bu) if 0.1 to 1.0 insects per 1,000 g were present in the sample, 77.2¢/ t (2.1¢/bu) if the insect density was 1.1 to 5.0 insects per 1,000 g, and $1.51/ t (4.1¢/bu) if more than 5.0 live insects per 1,000 g were present. Overall, for 17,730 t (650,000 bu) sold, 24.6¢/ t (0.67¢/bu) was lost because of insect discounts in some lots.