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Characteristics of Grain Elevators that Contract with Railroads

Author

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  • Steven D. Hanson
  • Stephen B. Baumhover
  • C. Phillip Baumel

Abstract

The Staggers Rail Act of 1980 allowed contracts between railroads and shippers which have resulted in increased grain prices to some farmers while, at the same time, increasing competitive pressure on some local grain elevators. This study employs a logistic model designed for complex survey designs to identify characteristics of elevators that had railroad contracts during 1983–85. The total volume shipped from an elevator, number of railroads serving an elevator location, and affiliation with elevator firms serviced by more than one railroad company are found to contribute significantly to the probability of a grain elevator receiving a railroad contract.

Suggested Citation

  • Steven D. Hanson & Stephen B. Baumhover & C. Phillip Baumel, 1990. "Characteristics of Grain Elevators that Contract with Railroads," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(4), pages 1041-1046.
    • Handle: RePEc:oup:ajagec:v:72:y:1990:i:4:p:1041-1046.
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    File URL: http://hdl.handle.net/10.2307/1242635
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    Cited by:

    1. William Wilson & Prithviraj Lakkakula, 2021. "Secondary rail car markets for grain transportation and basis values," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 472-488, July.
    2. Konkoly, Attila, 1996. "Development of a price visualization procedure of cash grain markets using GIS," ISU General Staff Papers 1996010108000017634, Iowa State University, Department of Economics.

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