A grain shipping terminal will be established in Delta by the Farmers Grain Cooperative of Ogden, to be housed in the former Junior Livestock Show barn in the north sector of the city.
Millard County Commissioner Mike Styler said the terminal will open up the wheat market to more farmers.Trucks are unavailable to ship the wheat to Ogden during the harvest period. Growers with large wheat production monopolize available transportation, it was reported.
The terminal won't create many new jobs, but Styler believes there will be indirect income because it will help stabilize the economy. Hay has always been the principal crop in west Millard County, much of it seed alfalfa. But the commissioner predicts it will be rivaled by increased grain production.
Grain producers are expected to save about $35 per acre in shipping costs, or about 10 percent of the crop.
Lew Sears, general manager and executive vice president of Farmers Grain Cooperative, said grain grown in Millard County can be shipped to West Coast markets and the profits passed along to producers. A rail spur exists near the terminal and Farmers Grain has taken an option to buy the facility. It will require little renovation and is properly zoned.
Spears said the cooperative represents 5,000 members in Utah and Idaho and serves customers in Southern California and the Pacific Northwest. The elevator in Ogden can store 4.8 million bushels of grain.
Production of barley for malt could increase income to grain farmers, a possibility that previously has been studied. Farmers could get $6 per hundredweight for malt barley as compared to only $4.20 they now receive, Spears said. Certified seed is required, however.
Most of the grain will be shipped at harvest time. The terminal will open about six weeks prior to the beginning of the harvest. The cooperative wants to expand and Millard County is a good area to do it in, said Joe Penrod, assistant general manager.
If production of malt barley proves more profitable, many wheat farmers are expected to change their operations to barley production.