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Commodity Program Slippage Rates For Corn And Wheat

Author

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  • Love, H. Alan
  • Foster, William E.

Abstract

Slippage rates for corn and wheat are estimated using a simultaneous system explaining per-acre yields, input usage, technical change, and levels of participation in government programs. Soybeans are included due to cross-compliance requirements and because they substitute for corn in production. Slippage rates for wheat are in the range of 29-37% and for corn in the range of 48-58%. The results imply that efficient design of commodity programs must account for the slippage of aggregate yields due to changes in land quality and the use of constrained resources over fewer acres.

Suggested Citation

  • Love, H. Alan & Foster, William E., 1990. "Commodity Program Slippage Rates For Corn And Wheat," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32068
    DOI: 10.22004/ag.econ.32068
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    References listed on IDEAS

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    1. Ericksen, Milton, 1976. "Use of Land Reserves to Control Agricultural Production," Miscellaneous Publications 329880, United States Department of Agriculture, Economic Research Service.
    2. Norton, Nancy Anders, 1986. "The Effect Of Acreage Reduction Programs On The Production Of Corn, Wheat, And Cotton: A Profit Function Approach," 1986 Annual Meeting, July 27-30, Reno, Nevada 278421, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Keeney, Roman & Hertel, Thomas W., 2008. "Yield Response To Prices: Implications For Policy Modeling," Working papers 45969, Purdue University, Department of Agricultural Economics.
    2. Gordon C. Rausser, 1992. "Predatory versus Productive Government: The Case of U.S. Agricultural Policies," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 133-157, Summer.
    3. Khanna, Madhu & Isik, Murat & Zilberman, David, 2002. "Cost-effectiveness of alternative green payment policies for conservation technology adoption with heterogeneous land quality," Agricultural Economics, Blackwell, vol. 27(2), pages 157-174, August.
    4. Nathan P. Hendricks, 2022. "Would farmers benefit from removing more land from production in the next farm bill?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1139-1157, September.
    5. Labson, B. Stephen, 1994. "Modeling distortionary aspects of the U.S. wheat program and policy reform," Journal of Policy Modeling, Elsevier, vol. 16(3), pages 237-263, June.
    6. Roman Keeney & Thomas W. Hertel, 2008. "U.S. Market Potential For Dried Distillers Grain With Solubles," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.
    7. Catherine Benjamin & Magalie Houée Bigot, 2006. "The impact on yields of arable crops of moving from price support to area payements: A Study of the 1992 CAP Reform: n° 423," Post-Print hal-01931561, HAL.
    8. Foster, William E. & Babcock, Bruce A., 1993. "Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 25(1), pages 253-265, July.
    9. Dana L. Hoag & William E. Foster & Bruce A. Babcock, 1993. "Field-Level Measurement of Land Productivity and Program Slippage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 181-189.
    10. Antônio Salazar P. Brandão & Will J. Martin, 1993. "Implications of agricultural trade liberalization for the developing countries," Agricultural Economics, International Association of Agricultural Economists, vol. 8(4), pages 313-343, June.
    11. Raja Chakir & Alban Thomas, 2020. "Unintended consequences of environmental policies: the case of set-aside and agricultural intensification," Working Papers hal-02482207, HAL.
    12. Bucholtz, Shawn & Roberts, Michael J., 2002. "Slippage Or Spurious Correlation: An Analysis Of The Conservation Reserve Program," 2002 Annual meeting, July 28-31, Long Beach, CA 19714, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Epplin, Francis M., 1997. "Wheat Yield Response To Changes In Production Practices Induced By Program Provision," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-12, December.
    14. Choi, Jung-Sup & Helmberger, Peter G., 1993. "How Sensitive Are Crop Yields To Price Changes And Farm Programs?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(1), pages 1-8, July.

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    Keywords

    Crop Production/Industries;

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