Correct answers must SHOW WORK and be clearly communicated for full credit. You may work in groups up to three individuals. Only turn in one copy per group to ReggieNet by the due date. Read the following article posted on AgWeb.com and graph the scenario below. Low River Levels, Soaring Barge Freight Rates Curbing U.S. Grain Exports By PRO FARMER EDITORS September 30, 2022 Numerous barges have run aground on the lower Mississippi River and grain barge shipping rates are soaring to historic highs this week, Reuters reports, hampering already sluggish grain exports from the Gulf. Tow boats on the lower Mississippi have been forced to reduce the number of barges per tow by nearly 40% to squeeze through the reduced shipping lanes. Get the Pro Farmer news and analysis that isn't available online when you start a subscription to Pro Farmer. Barge freight at the Port of St. Louis hit a record-high $49.88 per ton this week, up 58% from a year ago, according to USDA data, while grain barge unloads at Louisiana Gulf Coast export terminals were 39% below the five-year average since Sept. 1. "The projections for the water levels are going down, which means this situation is going to get worse," Mike Steenhoek, executive director for the Soy Transportation Coalition, told Reuters. "Unless we get a significant amount of rainfall soon, this season is going to be a challenge." Graphically illustrate (and briefly describe in words) the likely changes in the equilibrium quantity as well as retail, wholesale, and farm prices of grain due to the increased cost of transportation for grain wholesalers (i.e., there are three marketing levels - farm, wholesale, and retail - with the farm level producing grain, the wholesale level assembling grain and paying barge freight, and the retail level selling grain). You should have just one graph with all three marketing levels in it. Correct answers must SHOW WORK and be clearly communicated for full credit. You may work in groups up to three individuals. Only turn in one copy per group to ReggieNet by the due date. Read the following article posted on AgWeb.com and graph the scenario below. Low River Levels, Soaring Barge Freight Rates Curbing U.S. Grain Exports By PRO FARMER EDITORS September 30, 2022 Numerous barges have run aground on the lower Mississippi River and grain barge shipping rates are soaring to historic highs this week, Reuters reports, hampering already sluggish grain exports from the Gulf. Tow boats on the lower Mississippi have been forced to reduce the number of barges per tow by nearly 40% to squeeze through the reduced shipping lanes. Get the Pro Farmer news and analysis that isn't available online when you start a subscription to Pro Farmer. Barge freight at the Port of St. Louis hit a record-high $49.88 per ton this week, up 58% from a year ago, according to USDA data, while grain barge unloads at Louisiana Gulf Coast export terminals were 39% below the five-year average since Sept. 1. "The projections for the water levels are going down, which means this situation is going to get worse," Mike Steenhoek, executive director for the Soy Transportation Coalition, told Reuters. "Unless we get a significant amount of rainfall soon, this season is going to be a challenge." Graphically illustrate (and briefly describe in words) the likely changes in the equilibrium quantity as well as retail, wholesale, and farm prices of grain due to the increased cost of transportation for grain wholesalers (i.e., there are three marketing levels - farm, wholesale, and retail - with the farm level producing grain, the wholesale level assembling grain and paying barge freight, and the retail level selling grain). You should have just one graph with all three marketing levels in it
