During most weeks, the AgEconMT crew reads a lot of news, interacts with lots of people, and learns a lot. While we’re not able to report on and provide analyses on all of those things, we want to share at least a few items that we found to be particularly interesting and useful for the northern Great Plains agricultural sector during the past week.
Contracts Provide Shippers and Railroads Flexibility, but High Rates Concern Some Shippers (GAO): While rail contracts and tariffs are similar, contracts offer the flexibility to customize rates and terms to a specific shipper, according to selected stakeholders GAO interviewed. Both contract and tariff rates are based on market factors, such as competition, according to representatives from the four largest U.S. freight railroads. However, they noted that in developing contract rates, a railroad will also examine factors specific to each shipper and may negotiate discounts in exchange for the shipper committing to provide a specified volume over the contract’s duration. According to railroad representatives, the volume commitments negotiated in a contract allow the railroad to more efficiently allocate its resources and ensure consistent revenues. Also, selected shippers told GAO that they can more efficiently manage multiple shipping routes under one contract because of the stability in rates over the duration of the contract. In contrast, tariffs may be preferred for smaller shipments.
Keep the costs of trade in perspective (The Economist): Economists are realizing that they have got some things about trade wrong in the past. Just because trade can make everyone better off, doesn’t mean it will, for instance (at least without some help from politicians). That new research, and this year’s political ructions, are generating some reflection on these issues among economists is a good thing. But it is important to maintain one’s perspective.
Seed Industry: Past and Future (AgWired): ‘Glancing Back and Moving Forward in a Rapidly Changing Industry’ was a popular session at this year’s American Seed Trade Association CSS & Seed Expo, featuring (LtoR) Jon Leafstedt with Kincannon and Reed, DuPont Pioneer president Paul Schickler, and Sonny Beck, founder of Beck’s Hybrids. Reflecting on the past 20 years, this panel of seed industry leaders discussed their personal career paths, their methods for finding good talent and their predictions for the future, with a focus on developing people and corporate culture within their teams.
Notice anything we’ve missed and that could be interesting to others like you? Let us know and we’ll add it!
(Photo by NS Newsflash is licensed under CC BY 4.0)
