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Differential Effects of Rail Deregulation on US Grain Producers

Author

Listed:
  • Kimberly Vachal
  • John Bitzan
  • Tamara Vanwechel
  • Dan Vinje

Abstract

The efficiency benefits of US rail industry deregulation have been widely documented. This research provides new insight regarding the accrual of benefits within the US grain industry. A study of rail grain rates from 1980 to 2000 finds railroads decreased rates for all grain shippers. The greatest gain in benefits was to producers in the most competitive market environments. Regions and products with less competitive transportation markets will become increasingly disadvantaged if the trend continues. Rail rates are a key determinant in grain market viability and producer profitability in these rail dominated markets.

Suggested Citation

  • Kimberly Vachal & John Bitzan & Tamara Vanwechel & Dan Vinje, 2006. "Differential Effects of Rail Deregulation on US Grain Producers," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 9(2), pages 145-155.
  • Handle: RePEc:taf:jpolrf:v:9:y:2006:i:2:p:145-155
    DOI: 10.1080/13841280600771939
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    Keywords

    Deregulation; rail; grain;

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