The Impacts of Railroad Transportation Costs on Grain Elevator Margins

A stratified random sample of grain elevators supplied grain bid and transportation cost data. These data are used to analyze the effects of various rail transportation costs on grain elevator handling margins for corn, soybean and wheat. Factors affecting transportation costs such as rail contracts, mileage allowances, and transportation mode are shown to have significant impacts on elevator handling margins and consequently need to be considered in any analysis attempting to explain grain handling margins.