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Characteristics of Grain Elevators that Contract with Railroads
Author(s) -
Hanson Steven D.,
Baumhover Stephen B.,
Baumel C. Phillip
Publication year - 1990
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242635
Subject(s) - elevator , business , agricultural economics , economics , engineering , structural engineering
The Staggers Rail Act of 1980 allowed contracts between railroads and shippers which have resulted in increased grain prices to some farmers while, at the same time, increasing competitive pressure on some local grain elevators. This study employs a logistic model designed for complex survey designs to identify characteristics of elevators that had railroad contracts during 1983–85. The total volume shipped from an elevator, number of railroads serving an elevator location, and affiliation with elevator firms serviced by more than one railroad company are found to contribute significantly to the probability of a grain elevator receiving a railroad contract.