Hostname: page-component-6d856f89d9-76ns8 Total loading time: 0 Render date: 2024-07-16T06:47:49.010Z Has data issue: false hasContentIssue false
  • English
  • Français

Transportation Deregulation and Interregional Competition in the Northeastern Feed Economy

Published online by Cambridge University Press:  10 May 2017

Thomas F. Randolph  and
David R. Lee
Thomas F. Randolph
Affiliation:
Department of Agricultural Economics, Cornell University
David R. Lee
Affiliation:
Department of Agricultural Economics, Cornell University
Get access

Abstract

The effects of rail deregulation on feed transportation in the Northeast are examined through construction of a spatial equilibrium model of the Northeastern feed industry. Short-run and long-run effects of deregulation are analyzed through incorporation of rail rate structures for 1981 and 1984, respectively, into model simulations and comparison with pre-deregulation base year results (1980). The results show that the Northeast feed economy has generally benefited from rail deregulation which has led to lower transportation costs, lower feed costs and an enhanced competitive position relative to the Southeastern U.S.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 15 , Issue 2 , October 1986 , pp. 93 - 107
Copyright
Copyright © 1986 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

The authors wish to thank George Allen, ERS/USDA, for providing regional feed consumption data for this study, Richard Aumiller and Roderick Portine, Agway Inc., for furnishing much of the rail rate data, James Pratt for assistance in adapting the estimation algorithm, and Richard Boisvert and B. F. Stanton for helpful discussions.

References

Ahalt, J.D., and Egbert, A.C. “The Demand for Feed Concentrates: A Statistical Analysis.” Agricultural Economics Research 17 (1965):41–49.Google Scholar
Anderson, B.L. The New York Feed and Fertilizer Industries: Structure, Characteristics, and Input Movements. Ithaca: Cornell University Department of Agricultural Economics, A.E. Res. 81-26, 1981.Google Scholar
Casavant, Kenneth. “Impact of Staggers Rail Act of 1980 on United States Agriculture: An Assessment of Research Findings.” Unpublished paper, January 1985.Google Scholar
Casler, G.L. Economic Considerations in Drying and Storing Corn. Ithaca: Cornell University Department of Agricultural Economics, A.E. Ext. 77-25, 1977.Google Scholar
Cheong, Y.P. “Network Transformations and Some Applications.” Unpublished , Naval Postgraduate School, Monterey, California, 1975.Google Scholar
Dunn, J.W., and Garafola, L.A. “Changes in Transportation Costs and Interregional Competition in the U.S. Apple Industry.” Northeastern Journal of Agricultural and Resource Economics 15 (1986):37–44.Google Scholar
Enke, S. “Equilibrium Among Spatially Separated Markets: Solution by Electric Analogue.” Econometrica 19 (1951):40–47.Google Scholar
Fox, K.A., and Taeuber, R.C. “Spatial Equilibrium Models of the Livestock-Feed Economy.” American Economic Review 45:584–608, 1955.Google Scholar
Heady, E.O., Guinan, J.F., and Balloun, S.L. “Egg Production Functions,” in Heady, E.O. and Bhide, S., eds., Livestock Response Functions. Ames: Iowa State University Press, 1984:64–99.Google Scholar
Heady, E.O., Guinan, J.F., and Balloun, S.L., Askalani, M.H., and Balloun, S.L. “Broiler Production Functions,” in Heady, E.O. and Bhide, S., eds., Livestock Response Functions. Ames: Iowa State University Press, 1984:100–122.Google Scholar
Hoffman, L., Hill, L., and Leath, M.N. A Flexible Rail Rate Policy: Impacts on U.S. Feed Grains. Washington DC: USDA ERS Tech. Bull. No. 1701, April 1985.Google Scholar
Holland, F.D. GTP: A Microcomputer Program for the Spatial Equilibrium Problem. Washington D.C.: USDA ERS Staff Report No. AGES850514, October 1985.Google Scholar
Hull, D.B., and Westcott, P.C. “Factors Affecting Quarterly Domestic Feed Demand for Corn.” USDA Feed Outlook and Situation Report, FdS-294, September 1984:10–13.Google Scholar
King, G.A. The Demand and Price Structure for Byproduct Feeds. Washington DC: USDA Tech. Bull. 1183, 1958.Google Scholar
Langley, J.A. “Regional Differences in Acreage Response for Major U.S. Field Crops.” USDA, Unpublished paper, June 1985.Google Scholar
Leath, M.N., Meyer, L.H., and Hill, L.D. U.S. Corn Industry. Washington DC: USDA Agr. Econ. Rep. No. 479, 1982.Google Scholar
Randolph, T.F. “The Impact of Transportation Deregulation on the Northeastern Feed Industry,” Unpublished , Department of Agricultural Economics, Cornell University, June 1986.Google Scholar
Richardson, J.W., and Ray, D.E. “Demand for Feed Grains and Concentrates by Livestock Category.” Western Journal of Agricultural Economics 3 (1976):23–30.Google Scholar
Samuelson, P.A. “Spatial Price Equilibrium and Linear Programming.” American Economic Review 42 (1952):283–303.Google Scholar
Seaver, S.K. “The Staggers Rail Act: Provisions Important to Agricultural Shippers and Receivers.” Western Rural Development Center #19, Corvallis, Oregon. January, 1983a.Google Scholar
Seaver, S.K. The Impact of the Staggers Rail Act of 1980 Upon the Northeast Feed and Fertilizer Receivers. Storrs: University of Connecticut Coop. Ext. Ser. 83-27, June 1983b.Google Scholar
Seaver, S.K., and Hanekamp, W.J. Recent Developments in Feed Transportation to New England. Storrs: University of Connecticut, Agricultural Experiment Station Research Report 48, December 1977.Google Scholar
Shaffer, J.D., and Baumel, C.P. “Freight Regulatory Reform: Policy Issues After 1980.” Western Rural Development Center #23, Corvallis, Oregon. January, 1983.Google Scholar
Skinner, S.P., Seaver, S.K., Lee, T.C., and Ecker, G.A. Production Response and Structural Change in the Connecticut, Massachusetts, and New Hampshire Egg Industries Resulting from Adjustments in the Level of Freight Rates. Storrs: University of Connecticut Agr. Exp. Sta. Bulletin 458, July, 1981.Google Scholar
Sorenson, L.O. “Some Impacts of Rail Regulatory Changes on Grain Industries.” American Journal of Agricultural Economics 66 (1984):645–650.Google Scholar
Thatch, D.W., Slane, T.C., and Edelberg, H. “Transport Costs Impacts on the Fresh Market for Peaches—With Special Emphasis on the Northeast.” Northeastern Journal of Agricultural and Resource Economics 14 (1985):161–168.Google Scholar
U.S. Department of Agriculture. Agricultural Prices: Annual Summary. Washington D.C., 1980-81.Google Scholar
U.S. Department of Agriculture. Agricultural Statistics. Washington D.C. Various years.Google Scholar
U.S. Department of Agriculture. Feed Outlook and Situation Report. ERS, Washington D.C. Various years.Google Scholar
U.S. Department of Agriculture, Office of Transportation. “An Assessment of Impacts on Agriculture of the Staggers Rail Act and Motor Carrier Act of 1980.” Washington, D.C. August, 1982.Google Scholar
Wilson, W., Wilson, W., and Koo, W. “Modal Competition and Pricing in Grain Transportation.” Unpublished paper, Department of Agricultural Economics, North Dakota State University, October, 1984.Google Scholar
Wu, H.-Y.C., Jack, R.L., and Colyer, D. “The Northeast and Interregional Competition for Broilers.” Northeastern Journal of Agricultural and Resource Economics 14 (1985):18–25.Google Scholar