IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Impacts of Ethanol on the US Catfish Farm Sector

  • Zheng, Hualu
  • Muhammad, Andrew
  • Herndon, Cary W., Jr.

In this study, we estimated catfish feed and farm price reduced form equations. Of particular importance was the impact of the recent increase in grain prices induced by ethanol production on feed cost and farm prices. This relationship was examined using an autoregressive distributed lag (ARDL) model. Results show that a 1% increase in corn prices caused a 0.134% and 0.263% increase in feed prices in the short- and long-run, respectively. Catfish farm prices increased by 0.106% (short-run) and 0.211% (long-run) given a 1% increase in feed prices. Between 2004 and 2008, corn prices increased from $2 to $6 per bushels. Taheripour and Tyner (2008) state that of the total increase, 25% was due to US ethanol subsidies and 75% was due to the increase in the price of crude oil. Given the $1 increase in corn prices (50%), this should result in a feed price increase of 13% and a farm price increase of 2.7% in the long-run. Park and Fortenbery (2007) found that for every percentage increase in ethanol production, corn prices increased by 0.16 % in the short run. From this we conclude that a 100% increase in ethanol production will cause catfish feed prices to increase by 4.21% in the long run, and catfish farm prices to increase by 0.89%.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://purl.umn.edu/46248
Download Restriction: no

Paper provided by Southern Agricultural Economics Association in its series 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia with number 46248.

as
in new window

Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:ags:saeana:46248
Contact details of provider: Web page: http://www.saea.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
  2. Sahar Bahmani, 2008. "Stability of the Demand for Money in the Middle East," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 44(1), pages 62-83, January.
  3. Park, Hwanil & Fortenbery, T. Randall, 2007. "The Effect of Ethanol Production on the U.S. National Corn Price," 2007 Conference, April 16-17, 2007, Chicago, Illinois 37565, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
  4. Baek, Jungho & Koo, Won W., 2007. "Dynamic Interrelationships between the U.S. Agricultural Trade Balance and the Macroeconomy," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 39(03), December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ags:saeana:46248. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.