Analysis of the Soybean-to-Corn Price Ratio and its Impact on Farmers' Planting Decision-Making in Indiana
AbstractIn Indiana agricultural land is used mostly for corn and soybean harvesting. Rotated corn is a common practice, but in recent years, essentially due to the "ethanol boom" and increased profitability of corn production, many farmers have switched to continuous corn. Corn price increase affects the soybean-to-corn (STC) ratio, however, it is hypothesized that over time market effects will be felt, and return the ratio to its stable range. The threshold autoregressive model is used to analyze the monthly time series of STC ratio in Indiana. Results suggest that exogenous shocks will not have permanent effect on the STC price ratio, but will require, however, a reasonably long time to die out.
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Bibliographic InfoPaper provided by Southern Agricultural Economics Association in its series 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas with number 6783.
Date of creation: 2008
Date of revision:
Crop Production/Industries; Farm Management;
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- Houck, James P. & Ryan, Mary E., 1972. "Supply Analysis For Corn In The United States: The Impact Of Changing Government Programs," Staff Papers 13554, University of Minnesota, Department of Applied Economics.
- Chavas, Jean-Paul & Pope, Rulon D. & Kao, Robert S., 1983. "An Analysis Of The Role Of Futures Prices, Cash Prices And Government Programs In Acreage Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), July.
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