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Economic Determinants of the Farm and Elevator Trends in the Volume of Corn Artificially Dried

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  • Lowell D. Hill

Abstract

The trend toward on-farm drying of corn is not consistent with the economic advantage of the elevator in performing the drying function. This study examines the factors that have influenced this trend, using four related analytical models: (1) an aggregate model using county census data; (2) a profit-maximization model of individual farmers; (3) a weighted regression of ownership probabilities based on farm and elevator survey data; and (4) a regression model of behavior response by market areas. Results of these models provide a composite picture of the relationships influencing the decision to dry corn on the farm. Three independent sources of data add validity to the overall conclusions.

Suggested Citation

  • Lowell D. Hill, 1970. "Economic Determinants of the Farm and Elevator Trends in the Volume of Corn Artificially Dried," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(4), pages 555-568.
    • Handle: RePEc:oup:ajagec:v:52:y:1970:i:4:p:555-568.
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    File URL: http://hdl.handle.net/10.2307/1237263
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    Cited by:

    1. Wenzel, Benjamin P. & Hill, Lowell D. & Garcia, Philip, 2000. "The Effects Of The Micro-Market Structure On Illinois Elevator Spatial Corn Price Differentials," 2000 Conference, April 17-18 2000, Chicago, Illinois 18927, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    2. Raikes, Ronald & Harris, Duane G., 1974. "Corn Prices, The Fuel Shortage And Optimal Corn Harvesting Strategies," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 6(1), pages 1-5, July.

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