Implicit Values of Multiple Car Grain-Loading Facilities in Iowa and Nebraska

A mathematical programming model of grain transportation is structured such that alternative types of rail shippers and rail rates are represented within an individual region. Shadow prices of solutions are used to assess the values of multi-car grain loading facilities in Iowa and Nebraska by intrastate region and by facility size. Results indicate that, given 1980 facility and transport rate conditions, Iowa was overbuilt in 25- and 50-car loading facilities, and that there were large incentives for facility expansion in Nebraska.