Tag Archives: Grain

Grain Marketing 101: It’s the Fundamentals

Keith Balderson, Extension Agent, Crop & Soil Sciences, Essex County

 I have had several comments lately relative to the grain markets, such as, “the grain markets stink” and others that I can’t repeat in a newsletter. What’s going on? While there are several factors, much of the drop in the grain markets can be explained by supply and demand fundamentals. Simply put, when supply increases relative to demand, stocks increase and prices fall. And even though current prices are well below your cost of production, the market does not care. Continue reading

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A Snapshot of Virginia Grains and Oilseeds, Census of Agriculture 2012

Jim Pease, Extension Economist, Farm Management, Department of Agricultural and Applied Economics, Virginia Tech

The 2012 Census of Agriculture shows a strong economic sector with a big “footprint” on Virginia farmland. In terms of harvested acres, the Census indicates that the 4 principal grains and oilseeds harvested are soybeans (578,852 acres), corn grain (338,132 acres), wheat (241,979 acres), and barley (37,023 acres). Harvested acres increased over 2007 for soybeans (+18%), wheat (+21%), and barley (+33%), but fell for corn (-14%), reflecting lower corn price expectations. Continue reading

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How Grain is Transported in the U.S. (part 2)

Gustavo Ferreira, Assistant Professor & Extension Economist, Department of Agricultural and Applied Economics, Virginia Tech.

Peter Caffarelli,  Research Assistant, Agricultural and Applied Economics Dept., Virginia Tech.

Introduction

The purpose of this article is to discuss grain transportation in the United States (U.S.) in terms of the final destination – domestic or international. This is a particularly important issue given that grain production and the food and feed industries are often geographically distant from each other. In the case of foreign markets, the logistical requirements become even more complex and a well-developed transportation system is needed. Grain relies on barge, rail, and truck to facilitate its movement within the U.S. This study uses data on grain transportation that has been gathered by the USDA Agricultural Marketing Service (AMS), and the period of analysis goes from 1978 to 2010. Continue reading

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Off-Farm Grain Stocks and Capacity in Virginia

Peter Caffarelli, Graduate Research Assistant; Dr. Gustavo Ferreira, Assistant Professor; Dr. Gordon Groover, Associate Professor; Dr. Kathryn Boys, Assistant Professor, Agricultural and Applied Economics, Virginia Tech

Contributing over $635 million in cash receipts, grain and soybeans are an important part of agriculture in Virginia.[1] Within the grain sector, grain storage (both on- and off-farm) has useful functions in the grain supply chain from farm to final consumer. For instance, at the farm level, it gives grain producers increased flexibility in determining where and when their crop is sold and contributes to faster harvest times.[2] On the commercial side, elevators and processors expand the market opportunities for grain and facilitate its transportation.[3] The purpose of this article is to examine the aggregate levels of grain stocks and capacity of Virginia’s off-farm grain facilities. The presented research offers a glimpse into the availability of grain and capacity at the state-level. Continue reading

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Virginia’s Grain “Imports” by Rail: A Summary

Peter Caffarelli, Graduate student, Department of Agricultural and Applied Economics, Virginia Tech

Dr. Gustavo Ferreira, (gferre3@vt.edu) Assistant Professor, Department of Agricultural and Applied Economics, Virginia Tech

Dr. Gordon Groover, Associate Professor, Department of Agricultural and Applied Economics, Virginia Tech

Dr. Kathryn Boys, Assistant Professor, Department of Agricultural and Applied Economics, Virginia Tech

Connecting producers and markets (both domestic and abroad), transportation is critical to agriculture. Agriculture is the largest user of the transportation system in the U.S., moving 22 percent of the total tonnage and 31 percent of the total ton-miles in 2007.[1] The modes of transportation—truck; rail; and barge—complement and compete with one another in the shipment of grain.[2] Often, for example, producers will haul their grain by truck to an elevator, which then collects and ships the product via rail or barge to larger markets. Continue reading

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An Introductory Look at Rail and Commercial Grain Facilities in Virginia

By Peter Caffarelli,[1] Dr. Gustavo Ferreira,[2] Dr. Gordon Groover,[3] and Dr.Grain Harvest Kathryn Boys[4]

The article, “How Grain is Transported in the United States” (April-May 2013 issue of Farm Business Management Update), explained the trends and basic information pertaining to grain transportation in the U.S. This article will focus on Virginia’s rail system, how grain is transported, and locations of Virginia’s grain major handling facilities relative to the rail network. Continue reading

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