A Discriminant Analysis of Grain Market Structure in the South and Cornbelt

Abstract

A conceptual paradigm of the U.S. grain marketing system is developed which serves to identify important relationships between economic characteristics and the type of grain facilities being utilized in the South, Eastern and Western Cornbelt regions. Discriminant analysis methodology is used to identify the important discriminating structural variables within and across these regions. It is concluded that livestock and grain deficit related variables are the primary distinguishing characteristics in the South while grain facility services and transportation alternatives comprise the primary structural variables for the Cornbelt.