Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.

The grain price margins between buyers and sellers (i.e., basis spread) is influenced by the infrastructure used to transport crops from collection points to ports, which can be disrupted by weather extremes like floods and severe storms. Such disruptions are expected to become more frequent, potent...

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Main Authors: Theodoros Skevas, Wyatt Thompson, Benjamin Brown, Delmy Salin, Jesse Gastelle, Edgar Marcillo-Yepez
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0319815
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author Theodoros Skevas
Wyatt Thompson
Benjamin Brown
Delmy Salin
Jesse Gastelle
Edgar Marcillo-Yepez
author_facet Theodoros Skevas
Wyatt Thompson
Benjamin Brown
Delmy Salin
Jesse Gastelle
Edgar Marcillo-Yepez
author_sort Theodoros Skevas
collection DOAJ
description The grain price margins between buyers and sellers (i.e., basis spread) is influenced by the infrastructure used to transport crops from collection points to ports, which can be disrupted by weather extremes like floods and severe storms. Such disruptions are expected to become more frequent, potentially increasing food insecurity and impacting farm incomes. On average, the U.S. accounts for one-third of global corn and soybean production from 2012/13 to 2020/21, so the infrastructure to move crops from the main growing region to the nation's ports is critical to global crop and food markets. Despite the critical nature of these issues, there is limited research specifically examining the effects of weather extremes on the U.S. crop transportation network. This study investigates how weather extremes disrupt crop transportation networks, and, in turn, how those disruptions affect the basis spread of corn and soybeans. It uses basis spread data from nearly 5,000 U.S. midwestern corn and soybean elevators spanning from 2012 to 2020, along with natural disaster declarations to represent weather extremes affecting crop transportation. Using a three-step process, it calculates least cost transportation routes to a port, adjusts for weather disruptions, and integrates disaster, transportation cost, and control variables into a fixed effects, panel data model that explains variation in basis spread. Results show natural disasters, particularly flash floods and winter storms, negatively affect basis spread. The cost effects of natural disasters disrupting crop transportation routes further decrease basis spread. Strengthening crop transportation infrastructure to withstand flooding and winter storms could reduce disruptions in this network. These findings underscore the value of Federal and State policies that prioritize investments in resilient transportation infrastructure, particularly in regions prone to flash floods and winter storms. Strengthening this infrastructure could not only reduce the economic costs of weather disruptions but also affect farm income and food security.
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spelling doaj-art-2dbcc1539ca74c4bbbda9b7f8ebf810f2025-08-20T02:25:59ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01203e031981510.1371/journal.pone.0319815Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.Theodoros SkevasWyatt ThompsonBenjamin BrownDelmy SalinJesse GastelleEdgar Marcillo-YepezThe grain price margins between buyers and sellers (i.e., basis spread) is influenced by the infrastructure used to transport crops from collection points to ports, which can be disrupted by weather extremes like floods and severe storms. Such disruptions are expected to become more frequent, potentially increasing food insecurity and impacting farm incomes. On average, the U.S. accounts for one-third of global corn and soybean production from 2012/13 to 2020/21, so the infrastructure to move crops from the main growing region to the nation's ports is critical to global crop and food markets. Despite the critical nature of these issues, there is limited research specifically examining the effects of weather extremes on the U.S. crop transportation network. This study investigates how weather extremes disrupt crop transportation networks, and, in turn, how those disruptions affect the basis spread of corn and soybeans. It uses basis spread data from nearly 5,000 U.S. midwestern corn and soybean elevators spanning from 2012 to 2020, along with natural disaster declarations to represent weather extremes affecting crop transportation. Using a three-step process, it calculates least cost transportation routes to a port, adjusts for weather disruptions, and integrates disaster, transportation cost, and control variables into a fixed effects, panel data model that explains variation in basis spread. Results show natural disasters, particularly flash floods and winter storms, negatively affect basis spread. The cost effects of natural disasters disrupting crop transportation routes further decrease basis spread. Strengthening crop transportation infrastructure to withstand flooding and winter storms could reduce disruptions in this network. These findings underscore the value of Federal and State policies that prioritize investments in resilient transportation infrastructure, particularly in regions prone to flash floods and winter storms. Strengthening this infrastructure could not only reduce the economic costs of weather disruptions but also affect farm income and food security.https://doi.org/10.1371/journal.pone.0319815
spellingShingle Theodoros Skevas
Wyatt Thompson
Benjamin Brown
Delmy Salin
Jesse Gastelle
Edgar Marcillo-Yepez
Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
PLoS ONE
title Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
title_full Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
title_fullStr Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
title_full_unstemmed Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
title_short Weather extremes and their impact on crop transportation networks: Evidence from U.S. Midwestern elevators.
title_sort weather extremes and their impact on crop transportation networks evidence from u s midwestern elevators
url https://doi.org/10.1371/journal.pone.0319815
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