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Abstract
Differential grain transportation rates between the Northeast
and South have been identified as a possible source of comparative
disadvantage for Northeastern broiler producers. Low cost
barge transportation into the South provides competition for
railroads resulting in generally low transportation rates in the
South. Barge transportation is low cost in part because the
Federal improvements of waterways have resulted in a toll-free
waterway system. Solutions for a transportation model were
found with and without the subsidy. The results indicate that
subsidy removal is unlikely to affect interregional broiler production
and consumption.