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The Demand For Farm Output


  • Dunn, James E.
  • Heien, Dale


This paper treats the demand for farm output as part of an interrelated factor demand system. The farm level outputs are meat, poultry, dairy, fruits and vegetables and other food. The processing and distribution inputs are labor, packaging, transportation and all other. Input demands are modeled using a restricted translog cost function which is conditional on capital stock in the processing sector. The results show that: each category of farm output demand is inelastic; capital stock is an important determinant of the demand for farm output; there is no substitution among various farm outputs and little substitution between outputs and other inputs; there is moderate substitution among the nonfarm inputs; and, increases in nonfarm input cost have significant negative effects on farm output demand.

Suggested Citation

  • Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(01), July.
  • Handle: RePEc:ags:wjagec:32517

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    References listed on IDEAS

    1. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936.
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    Cited by:

    1. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256.
    3. Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Trade Research Center Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics.
    4. Capps, Oral, Jr., 1992. "Research Issues Facing The Food Distribution Sector: A Look Ahead," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(2), June.

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    Demand and Price Analysis;


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