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Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture

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  • Liang, Yan
  • Miller, J. Corey
  • Harri, Ardian
  • Coble, Keith H.

Abstract

In this paper we consider factors that affect both crop prices and yields in order to examine supply responses of major crops in the Southeast. Due to the variable nature of crop production in the Southeast, previous studies that ignore price and yield risk may fail to capture one of the salient features of the region’s agriculture. Our results indicate supply elasticity values for corn, cotton, and soybeans of approximately 0.670, 0.506, and 0.195, respectively. Compared with the results of studies in other regions, corn and cotton acres respond more to price changes and soybean acres respond less to price changes.

Suggested Citation

  • Liang, Yan & Miller, J. Corey & Harri, Ardian & Coble, Keith H., 2011. "Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-14, May.
    • Handle: RePEc:ags:joaaec:104615
    DOI: 10.22004/ag.econ.104615
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    Cited by:

    1. Haile, Mekbib G. & Kalkuhl, Matthias & von Braun, Joachim, 2013. "Short-term global crop acreage response to international food prices and implications of volatility," Discussion Papers 145308, University of Bonn, Center for Development Research (ZEF).
    2. Burdine, Kenneth H. & Maynard, Leigh J., 2012. "Risk Reduction of LGM-Dairy and its Potential Impact on Production," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124180, Agricultural and Applied Economics Association.
    3. Robert G. Chambers & Margarita Genius & Vangelis Tzouvelekas, 2021. "Invariant Risk Preferences and Supply Response under Price Risk," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1802-1819, October.
    4. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "Inter-and intra-annual global crop acreage response to prices and price risk," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149695, Agricultural and Applied Economics Association.
    5. Zhiqiang Liu & Hejun Liang & Dongping Pu & Fei Xie & E Zhang & Qi Zhou, 2020. "How Does the Control of Grain Purchase Price Affect the Sustainability of the National Grain Industry? One Empirical Study from China," Sustainability, MDPI, vol. 12(5), pages 1-21, March.
    6. Flanders, Archie, 2014. "Stocks-to-Use Response for Acreage Allocation of Arkansas Field Crops," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-15.
    7. Mosheim, Roberto & Blaney, Don & Burdine, Kenneth H. & Maynard, Leigh J., 2014. "Livestock Gross Margin-Dairy Insurance: An Assessment of Risk Management and Potential Supply Impacts," Economic Research Report 164606, United States Department of Agriculture, Economic Research Service.
    8. Burdine, Kenneth H. & Kusunose, Yoko & Maynard, Leigh J. & Blayney, Donald P. & Mosheim, Roberto, 2014. "Livestock Gross Margin–Dairy: An Assessment of Its Effectiveness as a Risk Management Tool and Its Potential to Induce Supply Expansion," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(2), pages 1-12, May.
    9. Mekbib G. Haile & Jan Brockhaus & Matthias Kalkuhl, 2016. "Short-term acreage forecasting and supply elasticities for staple food commodities in major producer countries," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-23, December.
    10. Mekbib G. Haile & Matthias Kalkuhl & Joachim Braun, 2014. "Inter- and intra-seasonal crop acreage response to international food prices and implications of volatility," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 693-710, November.
    11. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "How does food supply respond to high and volatile international food prices? An empirical evaluation of inter- and intra- seasonal global crop acreage response," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161472, African Association of Agricultural Economists (AAAE).

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    More about this item

    Keywords

    Crop Production/Industries; Production Economics;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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