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Location, Planting Decisions, And The Marketing Of Quality-Differentiated Agricultural Commodities

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  • Saak, Alexander E.

Abstract

In a marketing environment, the demand conditions, the costs of shipping and storing grain varieties, the interest rate on farm loans, and the distribution of cropland in the area are important determinants of growers' planting decisions. In this article, I focus on a market for two quality-differentiated agricultural commodities: one produced with the use of biotechnology and the other, without. I develop a model for analyzing the equilibrium planting and marketing decisions made by geographically dispersed producers during the marketing year following harvest. I identify the types of marketing environments leading to a greater concentration of equilibrium acreage planted to a particular grain variety near the market and investigate the effects of the marketing environment on the spatial patterns of equilibrium land allocation among grain varieties.

Suggested Citation

  • Saak, Alexander E., 2003. "Location, Planting Decisions, And The Marketing Of Quality-Differentiated Agricultural Commodities," Hebrew University of Jerusalem Archive 18427, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18427
    DOI: 10.22004/ag.econ.18427
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    References listed on IDEAS

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    1. Marion Desquilbet & E. Nitsi, 2000. "The economics of non-GMO segregation and identity preservation," Post-Print hal-02283451, HAL.
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    4. Harvey E. Lapan & Giancarlo Moschini, 2000. "Incomplete Adoption of a Superior Innovation," Economica, London School of Economics and Political Science, vol. 67(268), pages 525-542, November.
    5. Bullock, D. S. & Desquilbet, M., 2002. "The economics of non-GMO segregation and identity preservation," Food Policy, Elsevier, vol. 27(1), pages 81-99, February.
    6. Martin Benirschka & James K. Binkley, 1995. "Optimal Storage and Marketing Over Space and Time," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 512-524.
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