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Supply Response in Broadacre Agriculture

Author

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  • Hall, Nigel H.
  • Fraser, L.
  • Purtill, A.

Abstract

This paper describes a mathematical programming model of broadacre agriculture in Australia and presents estimates of national and regional supply responses made with it. Own-price and cross-price supply elasticities are presented for wool sheep meat, beef and crops and the results compared with those of two other major models of Australian agriculture. It is shown that long term supply responses for the commodities studied are substantially greater than unity as are cross-price elasticities in a number of cases. It is also shown that supply responses differ substantially between regions.

Suggested Citation

  • Hall, Nigel H. & Fraser, L. & Purtill, A., 1988. "Supply Response in Broadacre Agriculture," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-14, December.
    • Handle: RePEc:ags:remaae:12275
    DOI: 10.22004/ag.econ.12275
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    References listed on IDEAS

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    1. Thomas A. Miller, 1972. "Evaluation of Alternative Flexibility Restraint Procedures for Recursive Programming Models Used for Prediction," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(1), pages 68-76.
    2. Hall, Nigel H. & Menz, Kenneth M., 1985. "Product Supply Elasticities for the Australian Broadacre Industries, Estimated with a Programming Model," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(01), pages 1-8, April.
    3. Wilfred Candler & Wayne Cartwright, 1969. "Estimation of Performance Functions for Budgeting and Simulation Studies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(1), pages 159-169.
    4. Colman, David R., 1983. "A Review of the Arts of Supply Response Analysis," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 51(03), pages 1-30, December.
    5. Bond, Gary E. & Wonder, Bernard, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 1-19, April.
    6. Adams, Philip D., 1987. "Agricultural Supply Response in ORANI," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(03), pages 1-17, December.
    7. Mordecai Ezekiel, 1938. "The Cobweb Theorem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 52(2), pages 255-280.
    8. Gary E. Bond & Bernard Wonder, 1980. "Risk Attitudes Amongst Australian Farmers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 24(1), pages 16-34, April.
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    Citations

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    Cited by:

    1. Kingwell, Ross S., 1995. "Effects of Tactical Responses and Risk Aversion on Farm Wheat Supply," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), pages 1-14, April.
    2. Low, J. & Hinchy, Mike, 1990. "Estimation of Supply Response in Australian Broadacre Agriculture: The Multi-Product Approach," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145201, Australian Agricultural and Resource Economics Society.
    3. Ali Ferjani & Albert Zimmermann, 2013. "Estimating Agricultural Supply Response with the dynamic sectormodel SILAS-dyn," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 6(1), pages 155-176.
    4. Culas, Richard J., 2014. "Determinants of land use in wheat production: The Australian wheat-sheep zone," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165826, Australian Agricultural and Resource Economics Society.
    5. Zhao, Xueyan & Mullen, John D. & Griffith, Garry R. & Griffiths, William E. & Piggott, Roley R., 2000. "An Equilibrium Displacement Model of the Australian Beef Industry," Research Reports 28007, New South Wales Department of Primary Industries Research Economists.
    6. Kingwell, Ross, 1996. "Programming models of farm supply response: The impact of specification errors," Agricultural Systems, Elsevier, vol. 50(3), pages 307-324.
    7. Adams, Philip D., 1988. "Some Comparisons of Recent Estimates of Agricultural Supply Elasticities for the Australian Economy," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 56(03), pages 1-9, December.
    8. Todd Sanderson & Fredoun Z. Ahmadi‐Esfahani, 2009. "Testing Comparative Advantage in Australian Broadacre Agriculture Under Climate Change: Theoretical and Empirical Models," Economic Papers, The Economic Society of Australia, vol. 28(4), pages 346-354, December.
    9. Dent, Siobahn K. & Piggott, Roley R. & O'Donnell, Christopher J. & Griffith, Garry R., 2003. "Does Excluding Cross-commodity Interactions Matter? Beef and Lamb in Australia," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57859, Australian Agricultural and Resource Economics Society.
    10. Hall, Nigel H. & Mallawaarachchi, Thilak & Batterham, Robert L., 1991. "The Market for Irrigation Water: A Modelling Approach," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145889, Australian Agricultural and Resource Economics Society.
    11. Sharples, Jerry A. & Milham, Nick, 1990. "Long-run Competitiveness of Australian Agriculture," Foreign Agricultural Economic Report (FAER) 147996, United States Department of Agriculture, Economic Research Service.
    12. Hussain, Intizar & Liaw, Alvin & Hafi, Ahmed, 1999. "Modeling crop area allocations in Australian broadacre agriculture," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123817, Australian Agricultural and Resource Economics Society.
    13. Mullen, John D. & Alston, Julian M., 1995. "The Impact on the Australian Lamb Industry of Producing Larger Leaner Lamb," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 62(01), pages 1-19, April.
    14. Agbola, Frank W., 1999. "The Structure of Production and Investment in Australia's Pastoral Zone," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 122327, Australian Agricultural and Resource Economics Society.

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    Demand and Price Analysis;

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