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Changes to the Natural Gas, Corn, and Fertilizer Price Relationships from the Biofuels Era

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  • Beckman, Jayson
  • Richie, Stephanie

Abstract

The biofuels era brought about changes to the energy and agricultural sectors. For example, the decrease in natural gas prices has led to a weakening of the relationship between fertilizer and gas prices. The other change has been an increase in the demand for fertilizers, which has strengthened the price relationship between these two products. Econometric evidence from this work indicates that after 2008 the relationship between fertilizers and corn prices increased. In addition, results from our work indicate the presence of market power in the ammonia fertilizer sector.

Suggested Citation

  • Beckman, Jayson & Richie, Stephanie, 2015. "Changes to the Natural Gas, Corn, and Fertilizer Price Relationships from the Biofuels Era," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 0(Number 4), November.
    • Handle: RePEc:ags:joaaec:349123
    DOI: 10.22004/ag.econ.349123
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    References listed on IDEAS

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    1. Madhu Khanna & Jürgen Scheffran & David Zilberman (ed.), 2010. "Handbook of Bioenergy Economics and Policy," Natural Resource Management and Policy, Springer, number 978-1-4419-0369-3, November.
    2. Beckman, Jayson F. & Borchers, Allison & Jones, Carol, 2013. "Agriculture's Supply and Demand for Energy and Energy Products," Economic Information Bulletin 149033, United States Department of Agriculture, Economic Research Service.
    3. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
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    Cited by:

    1. Anton Bekkerman & Thomas Gumbley & Gary W. Brester, 2021. "The Impacts of Biofuel Policies on Spatial and Vertical Price Relationships in the US Fertilizer Industry," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(2), pages 802-822, June.
    2. Falconnier, Gatien N. & Leroux, Louise & Beillouin, Damien & Corbeels, Marc & Hijmans, Robert J. & Bonilla-Cedrez, Camila & van Wijk, Mark & Descheemaeker, Katrien & Zingore, Shamie & Affholder, Franç, 2023. "Increased mineral fertilizer use on maize can improve both household food security and regional food production in East Africa," Agricultural Systems, Elsevier, vol. 205(C).
    3. Beckman, Jayson & Dyck, John & Heerman, Kari, "undated". "The Global Landscape of Agricultural Trade, 1995-2014," Economic Information Bulletin 265270, United States Department of Agriculture, Economic Research Service.
    4. Małgorzata Holka & Jolanta Kowalska & Magdalena Jakubowska, 2022. "Reducing Carbon Footprint of Agriculture—Can Organic Farming Help to Mitigate Climate Change?," Agriculture, MDPI, vol. 12(9), pages 1-21, September.
    5. Ozgur Bor & Nihat Dagistan, 2024. "The impact of fluctuating international fertiliser prices and exchange rates on domestic fertiliser prices in Türkiye," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 70(1), pages 12-23.
    6. Reinhard Ellwanger & Hinnerk Gnutzmann & Piotr Śpiewanowski, 2025. "Cost Pass‐Through in Commodity Markets With Capacity Constraints and International Linkages," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 40(2), pages 149-163, March.
    7. Reinhard Ellwanger & Hinnerk Gnutzmann & Piotr Śpiewanowski, 2023. "Cost Pass-Through with Capacity Constraints and International Linkages," Staff Working Papers 23-16, Bank of Canada.
    8. Hinnerk Gnutzmann & Oskar Kowalewski & Piotr Śpiewanowski, 2020. "Market Structure and Resilience: Evidence from Potash Mine Disasters," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 911-933, May.
    9. G Tassinari & S Boccaletti & C Soregaroli, 2023. "Recycling sludge in agriculture? Assessing sustainability of nutrient recovery in Italy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(5), pages 1633-1658.

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