AbstractProposed abandonment of branch rail lines in rural areas has stimulated considerable concern over the impact of abandonment on shippers, receivers, and rural communities. The purpose of this paper is to present estimates of the benefits and the costs of upgrading seventy‐one branch rail lines. A benefit‐cost analysis is used to compare the net benefits with the net costs of upgrading the rail lines. Separate models are utilized to estimate the benefits to grain shippers, fertilizer shippers, and shippers and receivers of all other products from upgrading the branch lines. Benefit‐cost ratios are presented for six alternative solutions.