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Impact of Railroad Contracts on Grain Bids to Farmers

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  • Hanson, Steven D.
  • Baumel, C. Phillip
  • Schnell, Daniel

Abstract

The deregulation of railroads by the Staggers Rail Act of 1980 reversed nearly a century of prohibition of contracts between railroads and shippers/receivers. This paper presents an analysis of the impact that railroad contracts have on grain bids to corn, wheat, and soybean farmers. The empirical results indicate that destination contracts had significant impacts on prices bid to corn and soybean farmers, while origin contracts had significant and large impacts on prices bid to wheat farmers.

Suggested Citation

  • Hanson, Steven D. & Baumel, C. Phillip & Schnell, Daniel, 1989. "Impact of Railroad Contracts on Grain Bids to Farmers," Staff General Research Papers Archive 11688, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:11688
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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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