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Effect of Proposed Grain Standards on Marketing Costs of the U.S. Sorghum Sector: An Interregional Transshipment-Plant Location Model

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  • Ziari, Houshmand A.
  • Fuller, Stephen
  • Grant, Warren
  • Sutaria, Vinod

Abstract

Recent legislative initiatives call for studies to evaluate costs associated with cleaning U.S. grains to meet more stringent standards. This paper reports on a study which developed a mixed-integer programming model of the U.S. sorghum sector to (1) determine the least-cost geographic location for new cleaning investment at the country, terminal and port elevator stages of the marketing system and (2) measure additional system marketing costs associated with implementing the proposed standards. Results show the least-cost cleaning location to be at country and terminal elevators in excess supply regions. Implementing the proposed standard would increase system costs about 2 percent.

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  • Ziari, Houshmand A. & Fuller, Stephen & Grant, Warren & Sutaria, Vinod, 1995. "Effect of Proposed Grain Standards on Marketing Costs of the U.S. Sorghum Sector: An Interregional Transshipment-Plant Location Model," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(1), pages 238-252, July.
    • Handle: RePEc:cup:jagaec:v:27:y:1995:i:01:p:238-252_01
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