Railroad Competition and Wheat Rates

Railroads are important for transporting agricultural commodities from producing regions to domestic processing locations and export ports. These shipments involve large scale movements of low value, bulk commodities over long distances and thus rail service is virtually the only cost effective shipping alternative available. U.S. Department of Agriculture (USDA), Agricultural Marketing Service (2015) reports that railroads transported 83% of Montana and 80% of North Dakota grain and oilseeds during the crop marketing years from 2009 to 2012. Though not as critical as for Montana and North Dakota, rail transportation is significant for many other states producing grain and oilseeds. The corresponding percentages for South Dakota, Minnesota, Kansas, Oklahoma, Idaho, and Washington were 39%, 35%, 34%, 46%, 30%, and 31%, respectively. U.S. Wheat Production Location Largely Determines