EFFECTS OF TRANSPORTATION RATES ON SOYBEAN EXPORTS FROM THE WESTERN U.S. SOYBEAN BELT

Improvements in transport efficiency have contributed to the westward expansion of the major U.S. soybean growing area and to increasing exports of soybeans from the western fringe of the area through ports in the Pacific Northwest. Some observers have questioned whether future transport rate adjustments might not accelerate this trend. A spatial equilibrium, quadratic programming model was used to evaluate the effects of alternative short- and long-run domestic and ocean transportation rate structures on soybean shipping patterns and producer prices. Results show rail rate reductions do increase West-Coast soybean shipments and enhance producer prices along the western edge of the U.S. soybean belt but their impact declines as barge and ocean rates approach variable transport costs. An increase in barge rates to their long-run equilibrium levels has less effect on West-Coast exports than do higher ocean rates. Results suggest that soybean exports across the West Coast are likely to stabilize under long-run equilibrium transportation rates at about 1.24 million metric tons. Prospects for a rate-precipitated major permanent expansion in exports beyond this level appear limited in the absence of other forces which might expand western soybean supplies.

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  • Accession Number: 00490031
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 31 1989 12:00AM