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An Economic Analysis Of Corn Yield, Corn Profitability, And Risk At The Edge Of The Corn Belt

Author

Listed:
  • Chavas, Jean-Paul
  • Kim, Kwansoo
  • Lauer, Joseph G.
  • Klemme, Richard M.
  • Bland, William L.

Abstract

This study investigates the recent evolution of corn yield, with a special focus on the tradeoff between corn profitability and risk. The analysis relies on time-series data from Wisconsin experimental farms at the edge of the Corn Belt. An econometric model of corn yield, corn grain moisture, and corn profitability is specified. Both conditional means and conditional variances are estimated for different sites in Wisconsin. The empirical analysis shows the changes in corn yield and profit over time and across space. The evidence suggests that yield trends are due mostly to technical progress, with smaller effects generated by climate change. On average, corn yield and profitability have improved faster in northern Wisconsin than in the Corn Belt. However, risk has also increased faster. Results show that the choice of corn hybrid maturity makes it easier to manage risk in the Corn Belt than in northern Wisconsin.

Suggested Citation

  • Chavas, Jean-Paul & Kim, Kwansoo & Lauer, Joseph G. & Klemme, Richard M. & Bland, William L., 2001. "An Economic Analysis Of Corn Yield, Corn Profitability, And Risk At The Edge Of The Corn Belt," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), pages 1-18, July.
    • Handle: RePEc:ags:jlaare:31152
    DOI: 10.22004/ag.econ.31152
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    References listed on IDEAS

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    1. Quiroga, Sonia & Iglesias, Ana, 2009. "A comparison of the climate risks of cereal, citrus, grapevine and olive production in Spain," Agricultural Systems, Elsevier, vol. 101(1-2), pages 91-100, June.
    2. Taylor, Merritt J. & Lu, Wenhua & Duthie, James A & Roberts, B. Warren & Edelson, Jonathan V., 2003. "Effects Of High And Low Management Intensity On Profitability For Three Watermelon Genotypes," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35067, Southern Agricultural Economics Association.
    3. Dörschner, Till & Musshoff, Oliver, 2013. "Does the risk attitude influence the farmers' willingness to participate in agri-environmental measures? – A normative approach to evaluate ecosystem services," 53rd Annual Conference, Berlin, Germany, September 25-27, 2013 156112, German Association of Agricultural Economists (GEWISOLA).
    4. Dörschner, T. & Mußhoff, O., . "Does the Risk Attitude Influence and Farmers’ Willingness to Participate in Agri-Environmental Measures? – A Normative Approach to Evaluate Ecosystem Services," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 49.
    5. Nolan, Elizabeth & Santos, Paulo & Shi, Guanming, 2012. "Market concentration and productivity in the United States corn sector: 2002-2009," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125941, Agricultural and Applied Economics Association.

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