Research Progress Report 105
March. 1964
Truck Shipments of Grain from Indiana Country Elevators
1961-1962 Marketing Year
Paul L. Farris, Department of Agricultural Economics
Highlights
An estimated 38 percent of grain purchased by Indiana country elevators was shipped from the elevators by truck in the 1961-62 marketing season. The volume shipped by truck rose to around 95 million bushels, compared with 78 million bushels in 1958-59. Approximately 46 percent was shipped by rail in 1961-62, and 16 percent was retailed back to farmers in local trading areas as grain or feed.
There has been a striking increase in the proportion of Indiana grain trucked to Chicago and a decrease in the proportion trucked to Louisville. In 1961-62, 27percent, representing 26 million bushels, went by truck to Chicago, up from 22percent, representing 17 million bushels, in 1958-59. The proportion going by truck to Louisville declined to 7 percent of Indiana truck shipments in 1961 -62, from 13 percent in 1958-59.
Truck transportation charges tend to increase with distance. However, there is a great deal of variation. Rates reported by some elevators within a county for trucking corn to a given city were often as much as double the rates reported by other elevators within the same county.
Although Indiana is in general a surplus grain producing state, there are at times cer-
tain deficit areas. In 1961-62 an estimated 3,215,000 bushels of grain, mainly corn and oats, were trucked to country elevators from outside local trading areas. Approximately 65 percent came from within Indiana and 35 percent, slightly more than a million bushels, from other states, chiefly Illinois.
Introduction
Changes in grain shipment patterns and transport costs often affect farm prices directly. Grain is a bulky commodity, and transportation makes up a significant portion of the marketing margin. When grain shipping costs are lowered, producers of grain in grain surplus areas and consumers of grain in deficit areas both tend to benefit. Many producers may gain at least in the short run because of a rise in demand resulting from their being able to serve broader market areas. Grain consumers in deficit areas are likely to benefit because the prices they pay for grain shipped to them need not cover as high transportation costs. Lower transportation costs and changes in grain shipping patterns also tend to disrupt historical price relationships among grain producing and consuming areas.
This study was undertaken to obtain recent information about truck transportation
PURDUE UNIVERSITY • Agricultural Experiment Station • Lafayette, Indiana