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The Impact Of The Ldp On Corn And Soybean Basis In Missouri

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  • Parcell, Joseph L.

Abstract

This study analyzed the effect of the Loan Deficiency Payment (LDP) program, established under the Federal Agriculture Improvement Reform (FAIR) act of 199, on corn and soybean basis in Missouri. Using daily corn and soybean basis data between 1993 and 1999 for multiple locations in Missouri, and incorporating a variable for when the LDP was in effect during 1998 and 1999, empirical models examining factors affecting corn and soybean basis were estimated. Results indicate that the presence of the LDP program has not had a significant economic impact on corn or soybean basis during the 1998 to 1999 period. Furthermore, factors affecting corn and soybean basis varied by time within the marketing year.

Suggested Citation

  • Parcell, Joseph L., 2000. "The Impact Of The Ldp On Corn And Soybean Basis In Missouri," 2000 Conference, April 17-18 2000, Chicago, Illinois 18932, NCR-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    • Handle: RePEc:ags:ncrtci:18932
    DOI: 10.22004/ag.econ.18932
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    File URL: https://ageconsearch.umn.edu/record/18932/files/cp00pa01.pdf
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    References listed on IDEAS

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    1. Kastens, Terry L. & Jones, Rodney D. & Schroeder, Ted C., 1998. "Futures-Based Price Forecasts For Agricultural Producers And Businesses," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), pages 1-14, July.
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    4. Kastens, Terry L. & Dhuyvetter, Kevin C., 1999. "Post-Harvest Grain Storing And Hedging With Efficient Futures," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(2), pages 1-24, December.
    5. Larry Martin & John L. Groenewegen & Edward Pidgeon, 1980. "Factors Affecting Corn Basis in Southwestern Ontario," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 107-112.
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    7. Dhuyvetter, Kevin C. & Kastens, Terry L., 1998. "Forecasting Crop Basis: Practical Alternatives," 1981-1999 Conference Archive 285711, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    8. Bruce A. Babcock & Dermot J. Hayes & Phillip Kaus, 1998. "Are Loan Deficiency Payments Too Low In Iowa?," Center for Agricultural and Rural Development (CARD) Publications 98-bp20, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    Cited by:

    1. Dykema, Amy & Klein, Nicole L. & Taylor, Gary, 2002. "The Widening Corn Basis In South Dakota: Factors Affecting And The Impact Of The Loan Deficiency Payment," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36574, Western Agricultural Economics Association.
    2. Bullock, David W. & Wilson, William W., "undated". "Factors Influencing the Gulf and Pacific Northwest (PNW) Soybean Export Basis: An Exploratory Statistical Analysis," Agribusiness & Applied Economics Report 288512, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Bullock, David W. & Wilson, William W. & Lakkakula, Prithviraj, 2020. "Short-Term Dynamics and Structural Changes in the United States and Brazil Soybean Basis: Seasonality, Volatility, Structural Breaks and Information Flows," 2020 Conference, St. Louis, Missouri 309641, NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

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