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Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields

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  • Foster, William E.
  • Babcock, Bruce A.

Abstract

We estimate the influence of policy-induced price changes and of technology supply on North Carolina flue-cured tobacco yields. The decline in land rent and effective output price that accompanied a 1965 policy change from acreage allotments to poundage quotas caused a 12 percent decrease in yields. Farmer yields were more responsive to yield-increasing technologies under acreage allotments than under poundage quotas. Annual yield growth was 0.5 percent under poundage quotas and 4.32 percent under acreage allotments. The growth rate decline is attributable to changes in relative prices and to a slowdown in the supply of available technologies.

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  • 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.
    • Handle: RePEc:cup:jagaec:v:25:y:1993:i:01:p:253-265_01
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    1. Hoover, Dale M., 1967. "LEASE AND TRANSFER OF FLUE-CURED TOBACCO MARKETING QUOTA AMONG FARMS For the 1966 and 1967 Crop Year: A Preliminary Report," Department of Economics and Business - Archive 259526, North Carolina State University, Department of Economics.
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    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. Nalley, Lawton Lanier & Barkley, Andrew P. & Chumley, Forrest G., 2008. "The Impact of the Kansas Wheat Breeding Program on Wheat Yields, 1911–2006," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(3), pages 1-13, December.
    3. Julian M. Alston & Davide Gaeta, 2021. "Reflections on the Political Economy of European Wine Appellations," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 219-258, July.
    4. 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.
    5. Borges, Robert B., 1995. "Trade And The Political Economy Of Agricultural Policy: The Case Of The United States Peanut Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-18, December.

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