Flexible Rail Rate Policy: Impacts on U.S. Feed Grains

摘要

U.S. feed grains could be transported more efficiently by railroads through implementation of a combined peak and off-peak rail rate structure. This study assumes this policy had been in effect during a representative crop year and determines that a 5- to 15-percent change in rail rates would increase rail revenues and volume, reduce seasonal variation of rail demand, and create incentives for producers to store feed grain at country locations and ship at a later date. However, increased costs for storage, transportation, and handling would weaken the overall financial stability of the feed grain market.