Indiana Infrastructure Assessment and Economic Impact
Because the infrastructure is important to grain and soybean marketing efforts, the study was conducted to analyze Indiana’s transportation infrastructure in six key agricultural counties on how it impacts agribusiness economic development through grain elevators and terminal facilities, biofuel plants, livestock production and food processing.
This study focused on Indiana’s transportation infrastructure and the economic impact it has on our state's agriculture industry
- When infrastructure impedes traffic and the delivery of commodities and products farmers delivering grain might have to take a 20 mile detour, which can become quite costly for a farmer or the elevator who has to bid higher to attract grain.
- Based on the analysis in this report, the impact of driving an additional 20 miles under a $2.00 per gallon diesel price environment is 2-cents per bushel for corn or soybeans. If the diesel price is sustained at $4.00 per gallon the impact increases to 3-cents per bushel for corn and 4-cents for soybeans.
- If a bridge was closed for sustained period of time, and it was assumed the farmer will haul all the corn or soybeans over the detour route, the total impact on soybeans would range from $251 to $503 to move all the soybeans over the detour route. The annual impact would range from nearly $471 to $786 hauling soybeans.
- For the case of an elevator that could see 20% or 15% of its customers cut off due to a bridge closure, the cost to attract those farmers to the elevator can be significant. At varying diesel prices, the total annual extra cost for 15 farmers driving a 20 mile detour delivering corn and soybeans, the impact would range from nearly $3,800 at $2.00 fuel to about $7,500 with fuel at $4.00.
- If the farmers had to drive varying detour routes to an alternative elevator or processor with the diesel price constant at $2.50, the 15 farmers driving a 30 mile detour would incur additional costs of soybeans would be more than $7,000 for a detour of 30 miles to about $11,800 for a 50 mile detour.
While the above study concentrated on six key counties, ISA and ICMC also commissioned Informa Economics to look at each of the state's 92 counties.
The Indiana Transportation and Agricultural Infrastructure report is a compendium of Indiana's transportation and agricultural infrastructure at the state and county level. The major transportation infrastructure including roads, railroads, navigable waterways and bridges with a sufficiency rating of less than 80 were identified and mapped along with the agricultural features for each of Indiana's 92 counties.
Researcher: Informa Economics