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The Economics Of Cleaning Winter Wheat For Export: An Evaluation Of Proposed Federal "Clean Grain" Standards

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  • Adam, Brian D.
  • Kenkel, Philip L.
  • Anderson, Kim B.

Abstract

Buyer complaints about poor quality U.S. wheat have led to proposals to enforce minimum dockage standards for exports. An economic-engineering approach is used to evaluate costs and benefits of cleaning wheat in order to meet these standards for 13 possible cleaning configurations. These results are used in an optimization framework to estimate costs and benefits of cleaning all U.S. export wheat. The estimates indicate that cleaning U.S. export winter wheat to .35% dockage would cost an average of 1 cent/bu., requiring an initial capital investment of $28 million. Value of wheat lost in cleaning is a significant cost that previously has been overlooked.

Suggested Citation

  • Adam, Brian D. & Kenkel, Philip L. & Anderson, Kim B., 1994. "The Economics Of Cleaning Winter Wheat For Export: An Evaluation Of Proposed Federal "Clean Grain" Standards," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(2), pages 1-19, December.
    • Handle: RePEc:ags:jlaare:30758
    DOI: 10.22004/ag.econ.30758
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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. 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. 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. Yoon, Byung-Sam & Brorsen, B. Wade & Lyford, Conrad P., 2002. "Value Of Increasing Kernel Uniformity," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(2), pages 1-14, December.
    3. Ruiqing Miao & David A. Hennessy, 2015. "Optimal Protein Segregation Strategies for Wheat Growers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(3), pages 309-331, September.
    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. Dahl, Bruce L. & Wilson, William W., 1996. "Grades/Classes Of Hard Wheats Exported From North America: Analysis Of Demand And Trends," Agricultural Economics Reports 23379, North Dakota State University, Department of Agribusiness and Applied Economics.

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