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How Sensitive Are Crop Yields To Price Changes And Farm Programs?


  • Choi, Jung-Sup
  • Helmberger, Peter G.


A two-stage approach is used to estimate sensitivity of corn, wheat, and soybean yields to changes in prices and land idled. Estimated elasticity of demand for fertilizer per acre with respect to expected output price equals 0.47, 0.10, and 0.82 for corn, wheat, and soybeans. Upper estimates of the elasticity of yield with respect to fertilizer equals +0.58, +0.29, and +0.16 for corn, wheat, and soybeans. Yields are found to be quite insensitive to price changes. Fertilizer demands and yields are insensitive to land idled under farm programs.

Suggested Citation

  • Choi, Jung-Sup & Helmberger, Peter G., 1993. "How Sensitive Are Crop Yields To Price Changes And Farm Programs?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(01), July.
  • Handle: RePEc:ags:joaaec:15202

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    References listed on IDEAS

    1. Love, H. Alan & Foster, William E., 1990. "Commodity Program Slippage Rates For Corn And Wheat," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(02), December.
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    Cited by:

    1. Boussios, David & Barkley, Andrew, 2014. "Producer Expectations and the Extensive Margin in Grain Supply Response," Agricultural and Resource Economics Review, Cambridge University Press, vol. 43(03), pages 335-356, December.
    2. Zulfiqar, Farhad, 2010. "Estimation of Wheat Yield Response under different Economic, Location and Climatic Conditions in Punjab," MPRA Paper 26503, University Library of Munich, Germany.
    3. Asci, Serhat & Borisova, Tatiana & VanSickle, John J., 2015. "Role of economics in developing fertilizer best management practices," Agricultural Water Management, Elsevier, vol. 152(C), pages 251-261.
    4. David Ubilava, 2012. "Modeling Nonlinearities in the U.S. Soybean‐to‐Corn Price Ratio: A Smooth Transition Autoregression Approach," Agribusiness, John Wiley & Sons, Ltd., vol. 28(1), pages 29-41, January.
    5. Thomas, Timothy S., 2015. "US maize data reveals adaptation to heat and water stress:," IFPRI discussion papers 1485, International Food Policy Research Institute (IFPRI).
    6. Boussios, David & Barkley, Andrew P., 2012. "Kansas Grain Supply Response to Economic and Biophysical Factors, 1977-2007," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124385, Agricultural and Applied Economics Association.
    7. Traboulsi, Mohamad Rafic, 2013. "Effect of Climate Change on Supply Response of Florida Citrus Crops 1980-2010," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143063, Southern Agricultural Economics Association.
    8. Miguel Carriquiry & Amani Elobeid & Ryan Goodrich, 2016. "Comparing the trends and strength of determinants to deforestation in the Brazilian Amazon in consideration of biofuel policies in Brazil and the United States," Documentos de Trabajo (working papers) 16-12, Instituto de Economía - IECON.
    9. Miljkovic, Dragan & Ripplinger, David & Shaik, Saleem, 2016. "Impact of biofuel policies on the use of land and energy in U.S. agriculture," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1089-1098.
    10. repec:eee:ecomod:v:221:y:2010:i:18:p:2153-2166 is not listed on IDEAS
    11. repec:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-015-2066-3 is not listed on IDEAS
    12. Edison, Andy Mulyana & Jie, Ferry & Parton, Kevin A., 2011. "The Analysis Of Supply Response Of Rice Under Risk In Jambi Province," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 113736, Australian Agricultural and Resource Economics Society.
    13. Finger, Robert, 2010. "Evidence of slowing yield growth - The example of Swiss cereal yields," Food Policy, Elsevier, vol. 35(2), pages 175-182, April.


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