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

Author:

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

Abstract

AbstractRecent 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.

Publisher

Cambridge University Press (CUP)

Subject

Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)

Reference21 articles.

1. U.S. Department of Commerce. Statistical Abstract of the United States, 1990, Bureau of Census, 110th edition, 1990.

2. U.S. Department of Agriculture. Feed and Grain Market News, Agricultural Marketing Service, various issues.

3. Facilities Location: The Case of Grain Subterminals

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