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Corn Prices, the Fuel Shortage and Optimal Corn Harvesting Strategies

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  • Raikes, Ronald
  • Harris, Duane G.

Abstract

The unprecedented demand for United States feed grains has boosted corn prices to record levels. If corn prices continue at these record levels, corn production practices and the demand for corn production inputs likely will be affected. One of the corn production practices that may be affected is harvesting. And because of the increased use of field shelling and artificial drying, changes in corn-harvesting practices may have an impact on the demand for propane fuel used in corn drying. Future supplies of propane, however, may be limited, or higher priced, or both. The analysis reported in this paper is an attempt to estimate the impact of higher corn and propane prices on harvesting strategies, on the quantity of propane demanded, and on other related variables. The results of the analysis suggest that, given higher corn prices, the amount of propane demanded for corn drying will increase dramatically, even with much higher propane prices.

Suggested Citation

  • Raikes, Ronald & Harris, Duane G., 1974. "Corn Prices, the Fuel Shortage and Optimal Corn Harvesting Strategies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 6(1), pages 241-245, July.
    • Handle: RePEc:cup:jagaec:v:6:y:1974:i:01:p:241-245_01
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