Economic Implications of Cleaning Corn in the United States

Chin-Zen Lin and William Lin

No 308288, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

Abstract: Although foreign buyers prefer low-BCFM (broken corn and foreign material) corn, cleaning is not the solution to quality issues associated with U.S. corn cleanliness. The cost of cleaning corn above the current level at the least net-cost locations, both inland subterminals and river elevators, exceeds domestic benefits by $49 million. Because of the breakage susceptibility of corn kernels, the BCFM level in U.S. corn increases as corn moves toward ports. Thus, cleaning at the current level would still need to occur at every point in the marketing channel along with the additional cleaning to lower the BCFM level. The best approach to address the corn cleanliness issue is to reduce breakage susceptibility in corn through careful selection of drying systems and developing genotypes or hybrid varieties less prone to breakage.

Keywords: Crop Production/Industries; Demand and Price Analysis; International Relations/Trade; Marketing; Production Economics (search for similar items in EconPapers)
Pages: 33
Date: 1994-06
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerser:308288

DOI: 10.22004/ag.econ.308288

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