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Abstract
This study estimates the impact of local first-handler and area transportation infrastructure on corn and soybean basis during the 2018/19 marketing year. Cross-sectional data on local handlers and transportation infrastructure is aggregated at the county level. Geographical clustering patterns in the aggregated data is controlled through spatial models which provide consistent parameter estimates. Our findings suggest significant impacts from the presence of local corn processors on corn basis. A larger freight rail network and port infrastructure within a county are influential factors in setting corn and soybean basis. The shipping infrastructure of elevators also affects grain basis. The concentration of elevators that can ship through barge and rail improved corn and soybean basis. Lastly, our results show a heterogeneous impact of these variables across seasons within a marketing year.