IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Economic Impact of Ethanol Production on Arkansas Corn-Based Livestock Feed Prices

Listed author(s):
  • Armah, Paul W.
Registered author(s):

    This study evaluates the impact of corn used in ethenol production on livestock feed prices. Using graphical, correlation, and causality analyses and 3-month lead and lagged price series, the study forms and tests three main hypotheses: corn-based livestock feed prices are affected by crude oil prices; corn-based livestock feed prices are affected by ethanol prices; corn-based livestock feed prices are affected by beef prices. The graphical analyses show close relationships in the trend of corn-based livestock feed prices and crude oil, ethanol and beef prices. The results of the correlation analyses indicate highly significant positive coefficients at lag zero for all pairs of price series, suggesting an instantaneous relationship could be attributed to the high use of crude oil in tje production of corn as well as to the use of corn in the production of ethanol and livestock feed. The results of the causality analuses indicate strong bidirectioal causality relationships between the prices of ethanol, beef, and livestock feed. However, there is a weak causality relationship between crude oil prices and livestock feed prices. These results imply that higher crude oil prices in recent years have created higher incentives for the demand for and production of ethanol, thus stimulating demand for corn, the primary input or feedstock for ethanol. This has put upward pressure on corn-based livestock feed prices.

    If 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.

    File URL:
    Download Restriction: no

    Article provided by Food Distribution Research Society in its journal Journal of Food Distribution Research.

    Volume (Year): 42 (2011)
    Issue (Month): 1 (March)

    in new window

    Handle: RePEc:ags:jlofdr:139072
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ags:jlofdr:139072. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.