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Economic Implications of Cleaning Wheat in the United States

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Listed:
  • Hyberg, Bengt T.
  • Ash, Mark
  • Lin, William
  • Lin, Chin-zen
  • Aldrich, Lorna
  • Pace, David

Abstract

The costs of cleaning wheat exceed the domestic benefits of cleaning wheat. The absence of net domestic benefits from cleaning wheat suggests that the U.S. wheat market is responding efficiently to domestic market signals for less dockage and foreign material in wheat. An overall reduction in dockage and foreign material could benefit the U.S. wheat industry only if cleaner U.S. wheat induces sufficient trade benefits to overcome the net domestic cost. Barring any benefits from increased sales and premiums on the international market, there is no basis for mandatory cleaning requirements in the United States based on the costs and benefits of cleaning wheat. The least-cost alternative of cleaning wheat is at the subterminal elevator, which had a $23 million net cost.

Suggested Citation

  • Hyberg, Bengt T. & Ash, Mark & Lin, William & Lin, Chin-zen & Aldrich, Lorna & Pace, David, 1993. "Economic Implications of Cleaning Wheat in the United States," Agricultural Economic Reports 308269, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308269
    DOI: 10.22004/ag.econ.308269
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    References listed on IDEAS

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    1. Johnson, D. Demcey & Wilson, William W., 1993. "Wheat Cleaning Decisions At Country Elevators," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(2), pages 1-13, December.
    2. Mercier, Stephanie A., 1993. "The Role of Quality in Wheat Import Decisionmaking," Agricultural Economic Reports 308270, United States Department of Agriculture, Economic Research Service.
    3. Harwood, Joy L. & Leath, Mack N. & Heid, Walter G., 1989. "U.S. Milling and Baking Industries," Agricultural Economic Reports 305463, United States Department of Agriculture, Economic Research Service.
    4. Mercier, Stephanie A., 1989. "Dockage and Foreign Material in the Grading Standards for Wheat Exports," Staff Reports 278260, United States Department of Agriculture, Economic Research Service.
    5. Scherping, Daniel J. & Cobia, David W. & Johnson, D. Demcey & Wilson, William W., 1992. "Wheat Cleaning Costs and Grain Merchandising," Agricultural Economics Reports 23154, North Dakota State University, Department of Agribusiness and Applied Economics.
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    Cited by:

    1. Hyberg, Bengt & Uri, Noel D. & Oliveira, Valencia, 1996. "The quality characteristics of Japanese soybean imports," Japan and the World Economy, Elsevier, vol. 8(1), pages 81-98, March.
    2. Diersen, Matthew A. & Wilson, William W. & Johnson, D. Demcey, 1995. "Quality Uncertainty and Grain Merchandising Risk: Vomitoxin in Spring Wheat," Agricultural Economics Reports 23365, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Ghoshray, Atanu, 2006. "Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 35(2), pages 311-326, October.
    4. Wilson, William W., 1995. "Decentralization of Grain Trading: Trends, Implications, and Challenges," 1995 Conference (39th), February 14-16, 1995, Perth, Australia 148784, Australian Agricultural and Resource Economics Society.
    5. Ito, Shoichi & Rosegrant, Mark W. & Agcaoili-Sombilla, Mercedita C., 1995. "Quality-equivalent and cost adjusted measurement of international competitiveness in Japanese rice markets:," EPTD discussion papers 12, International Food Policy Research Institute (IFPRI).

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