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Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies

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  • Marsh, John M.

Abstract

A systems econometric model of the livestock (beef and pork), poultry (broiler), and corn sectors was estimated to evaluate cross-sector relationships. The equilibrium multipliers and comparative statics indicate unequal cross-effect of market disturbances, e.g., shocks in the livestock and poultry markets impact corn demand and supply more than shocks in the corn market impact livestock and poultry demands and supplies. Recent 2003 mad cow disease (BSE) problems in Canada and the United States display nontrivial cross-effects. For example, the BSE occurrences reduce real corn revenue in the United States by $0.62 billion, or 5.0% of its 2003 revenue.

Suggested Citation

  • Marsh, John M., 2007. "Cross-Sector Relationships Between the Corn Feed Grains and Livestock and Poultry Economies," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), April.
  • Handle: RePEc:ags:jlaare:8595
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    File URL: http://purl.umn.edu/8595
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    References listed on IDEAS

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    1. Ronald A. Fleming & Bruce Babcock & Erda Wang, 1998. "Resource or Waste? The Economics of Swine Manure Storage and Management," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 96-113.
    2. Robert Innes, 2000. "The Economics of Livestock Waste and Its Regulation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 97-117.
    3. Ottmar Röhm & Stephan Dabbert, 2003. "Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 254-265.
    4. Darrell J. Bosch & James W. Pease, 2004. "Manure Applications and Nutrient Standards," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 14-25.
    5. Ribaudo, Marc & Kaplan, Jonathan D. & Christensen, Lee A. & Gollehon, Noel R. & Johansson, Robert C. & Breneman, Vincent E. & Aillery, Marcel P. & Agapoff, Jean & Peters, Mark, 2003. "Manure Management For Water Quality Costs To Animal Feeding Operations Of Applying Manure Nutrients To Land," Agricultural Economics Reports 33911, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Araujo-Enciso, Sergio Rene, 2012. "The relationship between trade and price volatility in the Mexican and US maize markets," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122544, European Association of Agricultural Economists.
    2. John D. Anderson & Keith H. Coble, 2010. "Impact of renewable fuels standard ethanol mandates on the corn market," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 49-63.
    3. Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Some Economic Benefits and Costs of Vegetarianism," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    4. Hussein, Ahmed, 2017. "U.S. Broiler, Turkey And Total Poultry Supply Response To Corn Feed Prices," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252710, Southern Agricultural Economics Association.
    5. Brester, Gary W. & Marsh, John M. & Atwood, Joseph A., 2009. "Evaluating the Farmer’s-Share-of-the-Retail-Dollar Statistic," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), August.
    6. Krishna, Vijesh V. & Erenstein, Olaf & Sadashivappa, Prakash & Vivek, B. S., 2014. "Potential Economic Impact of Biofortified Maize in the Indian Poultry Sector," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 17(4).

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