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Crop Basis Patterns In The Presence Of Spatial Competition And Government Intervention

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  • Parcell, Joseph L.

Abstract

This study analyzes the effect of the Loan Deficiency Payment (LDP) program, established under the Federal Agriculture Improvement Reform (FAIR) act of 1996, on corn and soybean basis pattern patterns in Missouri. Additionally, spatial competition is incorporated into the basis models. Using weekly corn and soybean basis pattern data from 1993 through 2001 for multiple locations in Missouri, and incorporating a variable for when the LDP is in effect, empirical models examining factors affecting corn and soybean basis pattern patterns are estimated. Results indicate that the presence of the LDP program has a significant economic impact on soybean basis. Furthermore, spatial competition strengthens corn basis.

Suggested Citation

  • Parcell, Joseph L., 2002. "Crop Basis Patterns In The Presence Of Spatial Competition And Government Intervention," Working Papers 26043, University of Missouri Columbia, Department of Agricultural Economics.
    • Handle: RePEc:ags:umcowp:26043
    DOI: 10.22004/ag.econ.26043
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    File URL: https://ageconsearch.umn.edu/record/26043/files/aewp0207.pdf
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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(1), pages 1-14, July.
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