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Differential Effects Rail Deregulation in the U.S. Grain Industry

Author

Listed:
  • Vachal, Kimberly
  • Bitzan, John
  • Vanwechel, Tamara
  • Vinje, Dan

Abstract

The efficiency benefits of U.S. rail industry deregulation are well documented in previous studies of rail productivity and declining rail rates. This research provides new insight regarding the accrual of these benefits within the grain industry. A disaggregate study of corn, wheat, and soybean rates across nine producing regions, shows that in recent years the railroads ability to differentiate markets based on competitive environment has shifted relatively more of the benefit to regions with the most competitive market environments. Regions with less competitive pressure will continue to be relatively more disadvantaged in the rates that are an important determinant in grain market flows and producer profitability if these trends continue.

Suggested Citation

  • Vachal, Kimberly & Bitzan, John & Vanwechel, Tamara & Vinje, Dan, 2006. "Differential Effects Rail Deregulation in the U.S. Grain Industry," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25368, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25368
    DOI: 10.22004/ag.econ.25368
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    Cited by:

    1. McCarthy, Patrick & Zhai, Zhe, 2019. "Economic impact analysis of GDOT short line railroad infrastructure investment in Georgia," Research in Transportation Economics, Elsevier, vol. 77(C).

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    Keywords

    Marketing; Public Economics;

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