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

Published online by Cambridge University Press:  28 April 2015

Houshmand A. Ziari ,
Stephen Fuller ,
Warren Grant  and
Vinod Sutaria
Houshmand A. Ziari
Affiliation:
Texas A&M University, Department of Agricultural Economics, Texas Agricultural Experiment Station, College Station, Texas
Stephen Fuller
Affiliation:
Texas A&M University, Department of Agricultural Economics, Texas Agricultural Experiment Station, College Station, Texas
Warren Grant
Affiliation:
Texas A&M University, Department of Agricultural Economics, Texas Agricultural Experiment Station, College Station, Texas
Vinod Sutaria
Affiliation:
Texas A&M University, Department of Agricultural Economics, Texas Agricultural Experiment Station, College Station, Texas
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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.

Keywords

grain qualityplant locationmixed-integersorghum
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 27 , Issue 1 , July 1995 , pp. 238 - 252
Copyright
Copyright © Southern Agricultural Economics Association 1995

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