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The Impact of Ethanol Production on Spatial Grain Market Relationships

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  • Lewis, Karen E.
  • Tonsor, Glynn T.

Abstract

Using cointegration theory, grain markets in Michigan, Kansas, Iowa and Indiana were examined to determine if increased ethanol production affected spatial corn price relationships in these states from 1998 through 2008. It was determined that corn prices operated in a stable, long-run equilibrium from 1998 through 2008 and increased ethanol production did not have an effect on this relationship. These findings suggest policy boosting ethanol production has not altered relationships between spatially dispersed corn markets. In addition to policy makers, this information is also useful to farmers and commodity traders who utilize market information when managing their businesses.

Suggested Citation

  • Lewis, Karen E. & Tonsor, Glynn T., 2011. "The Impact of Ethanol Production on Spatial Grain Market Relationships," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(4), pages 1-14, November.
    • Handle: RePEc:ags:ifaamr:117607
    DOI: 10.22004/ag.econ.117607
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    References listed on IDEAS

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    Cited by:

    1. Liu, Bing & Hudson, Darren & Farmer, Michael, 2015. "The Impact of a Sorghum-Based Ethanol Plant on Local Cotton Acreage: A Spatial Approach," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229799, Southern Agricultural Economics Association.
    2. Natanelov, Valeri & McKenzie, Andrew M. & Van Huylenbroeck, Guido, 2013. "Crude oil–corn–ethanol – nexus: A contextual approach," Energy Policy, Elsevier, vol. 63(C), pages 504-513.

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