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Costs and Benefits of Cleaning U.S. Wheat: Overview and Implications

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  • Lin, William
  • Leath, Mack

Abstract

Cleaning all U.S. wheat for export above the current level is not economically feasible because costs of additional cleaning at the lowest net-cost location--country elevators for spring wheat and subterminal elevators for winter wheat--would outweigh benefits by at least $8 million in the short run. Since it is not in the U.S. wheat industry's interest to clean all export wheat, an alternative would be to target clean wheat for special niche markets. The wheat industry could potentially gain $8 to $10 million in net benefits if it targets wheat cleaning to the cleanliness-conscious markets, which account for about 20 percent of all U.S. wheat exports. Any public policy designed to promote cleanliness of U.S. wheat exports and to improve U.S. competitiveness in the world market must address the issue of how much, where, and which classes of wheat to clean and target for cleanliness-conscious markets. Policy options worthy of consideration include establishing dockage as a grade-determining factor, segregating wheat by its intrinsic characteristics, and launching an information (outreach) program to meet buyer preferences and to familiarize foreign buyers with U.S. wheat quality.

Suggested Citation

  • Lin, William & Leath, Mack, 1993. "Costs and Benefits of Cleaning U.S. Wheat: Overview and Implications," Agricultural Economic Reports 308280, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308280
    DOI: 10.22004/ag.econ.308280
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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. Bruno Larue & Harvey E. Lapan, 1992. "Market Structure, Quality and World Wheat Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 40(2), pages 311-328, July.
    3. Wilson, William W. & Scherping, Daniel J. & Johnson, D. Demcey & Cobia, David W., 1992. "Impacts of Alternative Policies Regulating Dockage," Agricultural Economics Reports 23149, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Larue, Bruno & Lapan, Harvey E., 1992. "Market Structure and the World Wheat Market," Staff General Research Papers Archive 10807, Iowa State University, Department of Economics.
    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.
    6. Landes, Rip & Ash, Mark, 1993. "Sri Lanka: Determinants of Wheat Import Demand," Staff Reports 278698, United States Department of Agriculture, Economic Research Service.
    7. C. A. Carter & R. M. A. Loyns & Z. F. Ahmadi-Esfahani, 1986. "Varietal Licensing Standards and Canadian Wheat Exports," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 34(3), pages 361-377, November.
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    Cited by:

    1. 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.
    2. Uri, Noel D. & Hyberg, Bengt, 1996. "Differentiation And Implicit Prices Of U.S. Wheat Exports," Journal of Food Distribution Research, Food Distribution Research Society, vol. 27(2), pages 1-14, July.

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