IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/198301010800008678.html
   My bibliography  Save this paper

Regional acreage response functions for major US field crops: estimation and policy implications

Author

Listed:
  • Langley, James A.

Abstract

The purpose of this study is to investigate potential regional differences in the supply response of crop producers to alternative market and government policy incentives. To accomplish this task, a set of acreage response functions are specified and estimated for 8 principal field crops (spring wheat, winter wheat, corn, sorghum, oats, barley, soybeans, and cotton) produced in 11 spatial regions of the United States (Appalachia, Corn Belt, Delta States, Lake States, Northeast, Northern Plains, Northwest, Southeast, Southern Plains, Southwest, and Western Plains). Variables in the functions include those related to expected per-acre gross returns from crop production, the impact of government policy programs (especially, loan rates, target prices, diversion payments, and allotments), and the effects of risk and uncertainty upon acreage response. Important elasticities are determined for each crop and region.

Suggested Citation

  • Langley, James A., 1983. "Regional acreage response functions for major US field crops: estimation and policy implications," ISU General Staff Papers 198301010800008678, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:198301010800008678
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/be974ae7-9225-4941-b653-c3886b016952/content
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Klein, Lawrence R. & Glickman, Norman J., 1977. "Econometric model-building at regional level," Regional Science and Urban Economics, Elsevier, vol. 7(1-2), pages 3-23, March.
    2. Bruce L. Gardner, 1976. "Futures Prices in Supply Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 81-84.
    3. Richard E. Just, 1974. "An Investigation of the Importance of Risk in Farmers' Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 14-25.
    4. Alvin C. Egbert & Hyung M. Kim, 1975. "Analysis of Aggregation Errors in Linear Programming Planning Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(2), pages 292-301.
    5. Rao, Vadlamudi Yugandhara, 1965. "Soybean supply functions for United States: a national, regional and state analysis," ISU General Staff Papers 196501010800004279, Iowa State University, Department of Economics.
    6. Evans, R. Samuel & Kenyon, David E., 1974. "Regional Soybean Acreage Response Analysis and Projections for 1974," Miscellaneous Publications 327162, United States Department of Agriculture, Economic Research Service.
    7. Gallagher, Paul W. & Houck, James P., 1976. "The Price Responsiveness of U.S. Corn Yields," Staff General Research Papers Archive 12563, Iowa State University, Department of Economics.
    8. Marc Nerlove, 1956. "Estimates of the Elasticities of Supply of Selected Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 38(2), pages 496-509.
    9. Steinnes, Donald N., 1980. "Aggregation, gerrymandering, and spatial econometrics," Regional Science and Urban Economics, Elsevier, vol. 10(4), pages 561-569, November.
    10. James P. Houck & Paul W. Gallagher, 1976. "The Price Responsiveness of U.S. Corn Yields," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(4_Part_1), pages 731-734.
    11. Penn, J. B. & Irwin, George D., 1971. "A Simultaneous Equation Approach to Production Response: Delta Region," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 3(1), pages 115-121, December.
    12. Winter, John R. & Whittaker, James K., 1979. "Estimation Of Wheat Acreage Response Functions For The Northwest," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(2), pages 1-6, December.
    13. Gray, Roger W. & Rutledge, David J.S., 1971. "The Economics of Commodity Futures Markets: A Survey," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 39(04), pages 1-52, December.
    14. Houck, James P., 1976. "Analyzing the Impact of Government Programs on Crop Acreage," Technical Bulletins 158119, United States Department of Agriculture, Economic Research Service.
    15. Telser, Lester G., 1967. "The Supply of Speculative Services in Wheat, Corn, and Soybeans," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 7(Supplemen), pages 1-46.
    16. B. J. Morzuch & R. D. Weaver & P. G. Helmberger, 1980. "Wheat Acreage Supply Response under Changing Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 29-37.
    17. Gallagher, Paul W., 1978. "The Effectiveness of Price Support Policy--Some Evidence for U.S. Corn Acreage Response," Staff General Research Papers Archive 12561, Iowa State University, Department of Economics.
    18. Walker, Rodney L. & Penn, J.B., 1975. "An Examination Of Major Crop Acreage Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 7(1), pages 1-7, July.
    19. Douglas Amedeo, 1969. "An Optimization Approach To The Identification Of A System Of Regions," Papers in Regional Science, Wiley Blackwell, vol. 23(1), pages 25-44, January.
    20. Lamm, R. McFall Jr., 1979. "Effects of Control on the Domestic Peanut Industry," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 31(4), pages 1-13, October.
    21. J. P. Houck & M. E. Ryan, 1972. "Supply Analysis for Corn in the United States: The Impact of Changing Government Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(2), pages 184-191.
    22. Mordecai Ezekiel, 1938. "The Cobweb Theorem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 52(2), pages 255-280.
    23. Langley, Suchada Vichitakul, 1982. "The formation of price expectations: a case study of the soybean market," ISU General Staff Papers 198201010800009358, Iowa State University, Department of Economics.
    24. Houck, James P. & Ryan, Mary E., 1972. "Supply Analysis For Corn In The United States: The Impact Of Changing Government Programs," Staff Papers 13554, University of Minnesota, Department of Applied Economics.
    25. Sharples, Jerry A. & Walker, Rodney L., 1974. "Shifts in Cropland Use in the North Central Region," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 26(4), pages 1-6, October.
    26. Richard E. Just, 1975. "Risk Response Models and Their Use in Agricultural Policy Evaluation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(5), pages 836-843.
    27. Grise, Verner N. & Shugars, Owen K., 1980. "Burley Tobacco Farming Characteristics and Potential for Change," Agricultural Economic Reports 307888, United States Department of Agriculture, Economic Research Service.
    28. Gallagher, Paul W., 1978. "The Effectiveness Of Price Support Policy--Some Evidence For U.S. Corn Acreage Response," Staff Papers 14140, University of Minnesota, Department of Applied Economics.
    29. Danin, Yigal, 1976. "A Simple Analysis Of Acreage Response To Some Agricultural Programs," Staff Papers 13889, University of Minnesota, Department of Applied Economics.
    30. Gallagher, Paul, 1978. "The Effectiveness Of Price Support Policy-Some Evidence For U.S. Corn Acreage Response," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 30(4), pages 1-7, October.
    31. James K. Whittaker & Robert L. Bancroft, 1979. "Corn Acreage Response-Function Estimation with Pooled Time-Series and Cross-Sectional Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 551-553.
    32. Walker, R. L. & Penn, J. B., 1975. "An Examination of Major Crop Acreage Response," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 7(1), pages 55-61, July.
    33. Hoffman, Robert G., 1973. "Wheat -- Regional Supply Analysis," Miscellaneous Publications 324762, United States Department of Agriculture, Economic Research Service.
    34. Just, Richard E., 1974. "Econometric Analysis of Production Decisions with Government Intervention: The Case of the California Field Crops," Monographs, University of California, Davis, Giannini Foundation, number 251950, December.
    35. Neenan, Bernard F. & Blandford, David, 1981. "Estimating the Effect of Government Programs on the Supply of Wheat in the United States," Staff Papers 183829, Cornell University, Department of Applied Economics and Management.
    36. Johnson, James & Ericksen, Milton H., 1977. "Commodity Program Provisions Under the Food and Agriculture Act of 1977," Agricultural Economic Reports 262049, United States Department of Agriculture, Economic Research Service.
    37. R. R. Officer & A. N. Halter, 1968. "Utility Analysis in a Practical Setting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 50(2), pages 257-277.
    38. Michael R. Reed & Steven K. Riggins, 1981. "A Disaggregated Analysis of Corn Acreage Response in Kentucky," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(4), pages 708-711.
    39. William Lin & G. W. Dean & C. V. Moore, 1974. "An Empirical Test of Utility vs. Profit Maximization in Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(3), pages 497-508.
    40. Ray, Daryll Eugene, 1971. "An econometric simulation model of United States agriculture with commodity submodels," ISU General Staff Papers 197101010800005575, Iowa State University, Department of Economics.
    41. Evans, Sam & Bell, Thomas M., 1978. "How Cotton Acreage, Yield, And Production Respond To Price Changes," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 30(2), pages 1-6, April.
    42. Grant, Warren R. & Leath, Mack N., 1979. "Factors Affecting Supply, Demand, and Prices of U.S. Rice," Economics Statistics and Cooperative Services (ESCS) Reports 143240, United States Department of Agriculture, Economic Research Service.
    43. Gray, Roger W., 1960. "The Characteristic Bias in Some Thin Futures Markets," Food Research Institute Studies, Stanford University, Food Research Institute, vol. 1(3), pages 1-17.
    44. Russell Lidman & D. Lee Bawden, 1974. "The Impact of Government Programs on Wheat Acreage," Land Economics, University of Wisconsin Press, vol. 50(4), pages 327-335.
    45. E. C. Pasour, 1980. "Cost of Production: A Defensible Basis for Agricultural Price Supports?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(2), pages 244-248.
    46. Miller, Thomas A., 1966. "Sufficient Conditions for Exact Aggregation in Linear Programming Models," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 18(2), pages 1-6, April.
    47. Penn, J.B. & Irwin, George D., 1971. "A Simultaneous Equation Approach To Production Response: Delta Region," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 3(1), pages 1-7, December.
    48. William Lin, 1977. "Measuring Aggregate Supply Response under Instability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(5), pages 903-907.
    49. B. S. Fisher & Carolyn Tanner, 1978. "The Formulation of Price Expectations: An Empirical Test of Theoretical Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 245-248.
    50. Ryan, Timothy J., 1977. "Supply Response To Risk: The Case Of U.S. Pinto Beans," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 2, pages 1-10, December.
    51. Richard H. Day, 1963. "On Aggregating Linear Programming Models of Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(4), pages 797-813.
    52. Lee, John E., Jr., 1966. "Exact Aggregation--A Discussion of Miller's Theorem," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 18(2), pages 1-4, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Ash, Mark S., 1984. "A supply response model for Iowa soybeans and net farm income implications," ISU General Staff Papers 1984010108000017528, Iowa State University, Department of Economics.
    2. Jeon, Jong-Pyeong, 1989. "The impacts of policy alternatives and foreign demand fluctuations on the US rice market," ISU General Staff Papers 1989010108000010204, Iowa State University, Department of Economics.
    3. Liu, Zong-Shin, 1989. "Monetary policy, exchange rate, and effects on US wheat trade and domestic market in an imperfect competition framework," ISU General Staff Papers 1989010108000010216, Iowa State University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Hsiang-Hsi, 1983. "An annual simultaneous equation econometric model of U.S. corn and soybean cash and futures markets," ISU General Staff Papers 198301010800009935, Iowa State University, Department of Economics.
    2. Shideed, Kamil H. & White, Fred C. & Brannen, Stephen J., 1987. "The Responsiveness Of U.S. Corn And Soybean Acreages To Conditional Price Expectations: An Application To The 1985 Farm Bill," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(2), pages 1-9, December.
    3. Chavas, Jean-Paul & Pope, Rulon D. & Kao, Robert S., 1983. "An Analysis Of The Role Of Futures Prices, Cash Prices And Government Programs In Acreage Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(1), pages 1-7, July.
    4. Chembezi, Duncan M. & Womack, Abner W., 1992. "Regional Acreage Response For U.S. Corn And Wheat: The Effects Of Government Programs," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(1), pages 1-12, July.
    5. Jeon, Jong-Pyeong, 1989. "The impacts of policy alternatives and foreign demand fluctuations on the US rice market," ISU General Staff Papers 1989010108000010204, Iowa State University, Department of Economics.
    6. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    7. Bailey, Kenneth W. & Womack, Abner W., 1985. "Wheat Acreage Response: A Regional Econometric Investigation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 17(2), pages 1-10, December.
    8. Tsai, Grace Yueh-Hsiang, 1989. "A dynamic model of the U.S. cotton market with rational expectations," ISU General Staff Papers 1989010108000012168, Iowa State University, Department of Economics.
    9. Bailey, Kenneth W. & Womack, Abner W., 1985. "Wheat Acreage Response: A Regional Econometric Approach," CNFAP Staff Reports 244132, Food and Agricultural Policy Research Institute (FAPRI).
    10. Duffy, Patricia A. & Richardson, James W. & Wohlgenant, Michael K., 1987. "Regional Cotton Acreage Response," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 19(1), pages 99-110, July.
    11. Koo, Won W. & Lehman, James R., 1984. "Effects of Government Programs on Corn, Soybeans, and Wheat Production in the U.S," Agricultural Economics Reports 23141, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. Holt, Matthew T., 1989. "Risk, Rational Expectations, and Price Stabilization in the U.S. Corn Market," Staff Papers 200480, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    13. Chen, Dean T. & Ito, Shoichi, 1989. "Modeling Supply Response for Rice Program Analysis: An Application of Implicit Revenue Switching Functions," Staff Reports 257924, Texas A&M University, Agricultural and Food Policy Center.
    14. John C. Quiggin, 1983. "Underwriting Agricultural Commodity Prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 27(3), pages 200-211, December.
    15. Winter, John R. & Whittaker, James K., 1979. "Estimation Of Wheat Acreage Response Functions For The Northwest," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 4(2), pages 1-6, December.
    16. Lin, Chien-Pang & Barkley, Andrew P., 1997. "Declining Commodity Program Payments and Enhanced Environmental Regulations: Impacts on Acreage Allocation in the Great Plains," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35932, Western Agricultural Economics Association.
    17. Gallagher, Paul & Green, Robert C., 1984. "A Cropland Use Model: Theory And Suggestions For Estimating Planted Acreage Response," Staff Reports 277586, United States Department of Agriculture, Economic Research Service.
    18. Tegene, Abebayehu, 1983. "A rational expectations approach to the modelling of agricultural supply: a case study of Iowa," ISU General Staff Papers 198301010800009963, Iowa State University, Department of Economics.
    19. Liu, Karen, 1981. "Multiple Crop Supply and Factor Demand Component of the World Grains, Oilseeds, and Livestock Model," Staff Reports 276718, United States Department of Agriculture, Economic Research Service.
    20. Vroomen, Harry L. & McClelland, John W., 1987. "Misspecification Of Time Series Models In U.S. Agricultural Response Analysis," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270117, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    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:isu:genstf:198301010800008678. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    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.