PulseExploreJournal ClubResearchersJournals
Instagram
HomeJournal ClubExplore
Synapse
⌘+K
Synapse
May 9, 2026AgribusinessOpen Access

When the River Runs Low: Heterogeneous Impacts of Transportation Disruptions on Local Grain Basis

View Full Paper
Ask AI
Bookmark
Share

Authors

YZYuan ZhangAAAndrew E. AndersonNPNicholas J. Pates

Discussion

Loading...

Member takes

Overview

Randomized trial estimates the impact of river transportation disruptions on grain basis for farmers, suggesting economic consequences.

Key Points

  • This research aims to estimate how transportation cost shocks influence cash bids and grain basis for farmers in the Midwest.
  • Used fixed-effects instrumental variables model to analyze elevator-level cash bids and barge freight rates.
  • River levels served as an instrument to estimate pass-through rates of transportation costs to farmers.
  • Examined interaction effects based on distance to river port, processing plant, and nearby elevator density.
  • Higher river transportation costs lead to a weaker soybean and corn basis.
  • Impact varies by distance from river port and elevator density; further distance reduces negative effects.
  • Corn basis is more strongly affected by local elevator density, while soybean basis is more sensitive to proximity to river ports.

Cite This Study

Zhang et al. (2026) studied this question.

synapsesocial.com/papers/69fecfafb9154b0b82876a14https://doi.org/10.1002/agr.70108
View Full Paper
Ask AI
Bookmark
Share