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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.