Costs and Benefits of Cleaning U.S. Corn: Overview and Implications

William Lin, Chin-Zen Lin and Mack Leath

No 308289, Agricultural Economic Reports from United States Department of Agriculture, Economic Research Service

Abstract: Although foreign buyers show a strong preference for clean corn, cleaning is not the solution to the U.S. corn cleanliness issue. The cost of cleaning corn above and beyond the current level at the least net-cost locations, at both inland subterminals and river elevators, would exceed all benefits by $49 million per year. Costs of additional cleaning would exceed benefits in both domestic and international markets at all points in the production-marketing system. Corn price, not quality, was regarded as the most important criterion in importers' purchase decisions in most importing countries included in this study. The best way to address the corn cleanliness issue is to reduce breakage susceptibility in corn through carefully selecting drying systems and developing genotypes or hybrid varieties that are less prone to breakage.

Keywords: Crop Production/Industries; 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:308289

DOI: 10.22004/ag.econ.308289

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