Logistics Play Big Role

Low Domestic Transportation Costs Give U.S. Edge Over Other Grain-Exporting Countries

Yelto Zimmer, a senior economist from the Thunen-Institute of Farm Economics in Germany, compared the relative cost of production for corn in the U.S., Argentina, Brazil and Ukraine at the DTN Ag Summit, highlighting each of the major exporters' strengths and weaknesses. (DTN/The Progressive Farmer photo by Jim Patrico)
Farmers' costs of production around the globe may be similar overall, but the composition of them is often different. Those costs and the relative transportation cost help explain why some countries are more competitive exporters than others.

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