IDEAS home Printed from https://ideas.repec.org/a/uwp/landec/v94y2018i4p593-613.html

The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era

Author

Listed:
  • Hyunseok Kim
  • GianCarlo Moschini

Abstract

We estimate U.S. corn and soybean supply responses by exploiting the large exogenous price variations associated with implementation of the Renewable Fuel Standard. We focus on recent years and on the 12 U.S. midwestern states and estimate a system of dynamic equations that is consistent with the role of crop rotation. Corn and soybean acreages respond more in the short run than in the long run. Cross-price elasticities of acreage responses are negative and fairly large in absolute value such that, when corn and soybean prices move together, the response of total acreage allocated to these two crops is extremely inelastic.

Suggested Citation

  • Hyunseok Kim & GianCarlo Moschini, 2018. "The Dynamics of Supply: U.S. Corn and Soybeans in the Biofuel Era," Land Economics, University of Wisconsin Press, vol. 94(4), pages 593-613.
    • Handle: RePEc:uwp:landec:v:94:y:2018:i:4:p:593-613
    Note: DOI: 10.3368/le.94.4.593
    as

    Download full text from publisher

    File URL: http://le.uwpress.org/cgi/reprint/94/4/593
    Download Restriction: A subscription is required to access pdf files. Pay per article is available.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lee, Meongsu & Westhoff, Patrick, 2020. "The U.S.-China Trade war and Impact on Land Returning to Soybean Production from the Conservation Reserve Program," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304518, Agricultural and Applied Economics Association.
    2. Lamonaca, Emilia & Santeramo, Fabio Gaetano & Seccia, Antonio, . "Climate changes and new productive dynamics in the global wine sector," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 10(2).
    3. Fabio G. Santeramo & Monica Delsignore & Enrica Imbert & Mariarosaria Lombardi, 2023. "The Future of the EU Bioenergy Sector: Economic, Environmental, Social, and Legislative Challenges," International Review of Environmental and Resource Economics, now publishers, vol. 17(1), pages 1-1–52, April.
    4. Santeramo, Fabio Gaetano & Maccarone, Irene, 2022. "Analisi storica delle rese agricole e la variabilità del clima: Analisi dei dati italiani sui cereali [Historical crop yields and climate variability: analysis of Italian cereal data]," MPRA Paper 114135, University Library of Munich, Germany, revised 04 Aug 2022.
    5. Tan Ngoc Vu & Chi Minh Ho & Thang Cong Nguyen & Duc Hong Vo, 2020. "The Determinants of Risk Transmission between Oil and Agricultural Prices: An IPVAR Approach," Agriculture, MDPI, vol. 10(4), pages 1-14, April.
    6. Geoffroy Enjolras & Jean‐Laurent Viviani, 2025. "The Impact of Climate Change on the Income of Wine Producers in the Bordeaux Region," Business Strategy and the Environment, Wiley Blackwell, vol. 34(4), pages 4337-4353, May.
    7. Nikolaos T. Milonas & Evangelia K. Photina, 2024. "The convenience yield under commodity financialization," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 44(4), pages 631-652, April.
    8. Gouel, Christophe & Laborde, David, 2021. "The crucial role of domestic and international market-mediated adaptation to climate change," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    9. Sampson, Gabriel S. & Al-Sudani, Amer & Bergtold, Jason, 2021. "Local irrigation response to ethanol expansion in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 66(C).
    10. Santeramo, Fabio Gaetano & Di Gioia, Leonardo & Lamonaca, Emilia, 2021. "Price responsiveness of supply and acreage in the EU vegetable oil markets: Policy implications," Land Use Policy, Elsevier, vol. 101(C).
    11. Gaurav Arora & Hongli Feng & Christopher J. Anderson & David A. Hennessy, 2020. "Evidence of climate change impacts on crop comparative advantage and land use," Agricultural Economics, International Association of Agricultural Economists, vol. 51(2), pages 221-236, March.
    12. Santeramo, Fabio Gaetano & Bozzola, Martina & Lamonaca, Emilia, 2020. "Impacts of Climate Change on Global Agri-Food Trade," 2019: Recent Advances in Applied General Equilibrium Modeling: Relevance and Application to Agricultural Trade Analysis, December 8-10, 2019, Washington, DC 339375, International Agricultural Trade Research Consortium.
    13. Fabio G., Santeramo & Ilaria, Russo & Emilia, Lamonaca, 2022. "Italian subsidised crop insurance: what the role of policy changes," MPRA Paper 115299, University Library of Munich, Germany.
    14. Jaimes, Richard & Gerlagh, Reyer, 2020. "Resource-richness and economic growth in contemporary U.S," Energy Economics, Elsevier, vol. 89(C).
    15. Lamonaca, Emilia & Seccia, Antonio & Santeramo, Fabio Gaetano, 2023. "Climate cha(lle)nges in global wine production and trade patterns," MPRA Paper 119296, University Library of Munich, Germany.
    16. Nicholas J. Pates & Nathan P. Hendricks, 2021. "Fields from Afar: Evidence of Heterogeneity in United States Corn Rotational Response from Remote Sensing Data," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1759-1782, October.
    17. Luo, Jinjing & Moschini, GianCarlo & Perry, Edward D., 2023. "Switching costs in the US seed industry: Technology adoption and welfare impacts," International Journal of Industrial Organization, Elsevier, vol. 89(C).

    More about this item

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uwp:landec:v:94:y:2018:i:4:p:593-613. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://le.uwpress.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.