Industry & Marketing / Environment and Natural Resources

Name ______________________

School______________________

Scenario:

You are an operator of a local grain elevator. You have several shipments of wheat coming from different area producers. You pay them $4.69 per bushel, but you need to find the moisture content of each load and figure up the amount of price dockage. This will ensure that you are paying for a full bushel of wheat, and not a partial bushel and some water. The feed wheat price is $3.50 cents per bushel. NOTE: 1 bushel of wheat = 60 lbs.

***Make all Calculations on separate sheet***

Break into 4 groups. Each group will test one sample and report the moisture content of each sample to the other groups.

Moisture:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

Using the following formula, calculate the % Shrink of each Sample.

%shrink = (% moisture – 13.5) x 2

EX: 15% Moisture Þ (15 – 13.5) x 2 = 3% shrink.

Shrink:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

Now Use the Dockage Table to find the dockages for each sample’s % shrink.

Dockage % Table.

% Shrink	Adjustment per bushel	% Shrink	Adjustment per bushel
0.0 - .75 %	No Adjustment	2.6 - 3.0 %	20 cents / bu discount
.75 - 1.0 %	3 cents / bu discount	3.1 - 3.5 %	25 cents / bu discount
1.1 - 1.5 %	5 cents / bu discount	3.6 - 4.0 %	30 cents / bu discount
1.6 - 2.0 %	10 cents / bu discount	4.1 - 4.5 %	35 cents / bu discount
2.1 - 2.5 %	15 cents / bu discount	4.6 - 5.0 %	40 cents / bu discount
		Over 5 %	FEED WHEAT DISCOUNT

Dockage per shrink:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

Test weights of each sample have been taken, and the following are the observed weights.

Test Weights per bushel:

Sample #1: 56 lbs. Sample #2: 59 lbs.

Sample #3: 51 lbs. Sample #4: 60 lbs.

Use the following table to calculate dockages for each sample per test weights:

Test Weight Table.

Test Weight	Adjustment per bushel	Test Weight	Adjustment per bushel
59 lbs.	1 cent / bu discount	55 lbs.	15 cents / bu discount
58 lbs.	2 cents / bu discount	54 lbs.	20 cents / bu discount
57 lbs.	5 cents / bu discount	Below 54 lbs.	5 cents / lb / bu disocunt
56 lbs.	10 cents / bu discount

Dockage per Test Weight:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

What will you pay each of the 4 customers for a bushel of their wheat with the dockages and test weights figured in? (Remember that the pre-adjusted price is $4.69 / bu.)

Price/Bushel:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

We have weighed each customer’s overall shipment. They are as follows:

Overall Weight:

Sample #1 : 18,000 lbs. Sample #2 : 19,440 lbs.

Sample #3 : 21,900 lbs. Sample #4 : 16,440 lbs.

What is the total amount paid to each customer considering the above overall weight and the price/bushel calculated above for each load? (Remember that a bushel of wheat weighs 60 lbs.)

Overall Price For Each Customer:

Sample #1: _____________ Sample #2: ________________

Sample #3: _____________ Sample #4: ________________

Evaluation:

1 point per answer space 24 pts possible ______________

Team effort to find moisture content 6 pts possible ______________