Hostname: page-component-5db6c4db9b-fdz9p Total loading time: 0 Render date: 2023-03-25T12:09:44.639Z Has data issue: true Feature Flags: { "useRatesEcommerce": false } hasContentIssue true

Export Demand Elasticity Estimation for Major U.S. Crops

Published online by Cambridge University Press:  26 January 2015

Jeffrey J. Reimer
Department of Agricultural and Resource Economics, Oregon State University, Corvallis, Oregon
Xiaojuan Zheng
Department of Agricultural and Resource Economics, Oregon State University, Corvallis, Oregon
Mark J. Gehlhar
U.S. Department of the Interior, Washington, DC
Get access


Elevated prices for major U.S. commodities have renewed interest in the price sensitivity of foreign demand facing the United States. Although the elasticity of foreign demand plays an important role in discussions of U.S. farm policy, it is also a parameter that is much debated with the majority of studies in this area published over 20 years ago. We provide new estimates of the elasticity of export demand for U.S. corn, soybeans, and wheat using updated data and empirical techniques. Our estimates are useful for practical policy analysis as well as for researchers seeking to parameterize large-scale simulation models.

Research Article
Copyright © Southern Agricultural Economics Association 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)


Abbott, P.Modeling International Grain Trade with Government Controlled Markets.” American Journal of Agricultural Economics 61(1979):2231.CrossRefGoogle Scholar
Bredahl, M.E., Meyers, W.H., and Collins, K.J.The Elasticity of Foreign Demand for U.S. Agricultural Products: The Importance of the Price Transmission Elasticity.” American Journal of Agricultural Economics 61,1(1979):5863.CrossRefGoogle Scholar
Carter, C.A., and Gardiner, W.H., eds. Elasticities in International Agricultural Trade. Boulder, CO: Westview Press, 1988.Google Scholar
Chambers, R.G., and Just, R.E.Effects of Exchange Rate Changes on U.S. Agriculture: A Dynamic Analysis.” American Journal of Agricultural Economics 63,1(1981):3246.CrossRefGoogle Scholar
Conforti, P. 2004. “Price Transmission in Selected Agricultural Markets.” Commodities and Trade Policy Research Paper No. 7. Rome, Italy: Food and Agriculture Organization.Google Scholar
Devadoss, S., and Meyers, W.H.Variability in Wheat Export Demand Elasticity: Policy Implications.” Agricultural Economics 4,3-4(1990):381–94.CrossRefGoogle Scholar
FAO (Food and Agricultural Organization). 2012. PriceSTAT database. Internet site: Scholar
Gardiner, W.H.The Impact of Alcohol Fuel Production on Agricultural Markets.” Ph.D. dissertation, Purdue University, 1986.Google Scholar
Gardiner, W.H., and Dixit, P.M. 1987. Price Elasticity of Export Demand: Concepts and Estimates. Washington, DC: U.S. Department of Agriculture, ERS. Foreign Agricultural Economic Report No. 228, February.Google Scholar
Greene, W.H.Econometric Analysis. New York, NY: Prentice-Hall, 2004.Google Scholar
Johnson, P.R.The Elasticity of Foreign Demand for U.S. Agricultural Products.” American Journal of Agricultural Economics 59,4(1977):735–36.CrossRefGoogle Scholar
Johnson, S.R., Womack, A.W., Meyers, W.H., Young, R.E., and Brandt, J. 1985. “Options for the 1985 Farm Bill: An Analysis and Evaluation, “ FAPRI Report No. 1-85, Food and Ag. Policy Research Institute, University of Missouri-Columbia and Iowa State University.Google Scholar
Magee, S.P.Prices, Incomes, and Foreign Trade: A Survey of Recent Economic Studies.” International Trade and Finance: Frontiers for Research. Kenen, P.B., ed. Cambridge, UK: Cambridge University Press, 1975, pp. 175252.Google Scholar
Meyers, W.H., Devadoss, S., and Helmar, M.D.Agricultural Trade Liberalization: Cross-Commodity and Cross-Country Impacts.” Journal of Policy Modeling 9,3(1987):455–84.CrossRefGoogle Scholar
Meyers, W.H., and Helmar, M.D. 1986. “Trade Implications of the Food Security Act of 1985, “ Staff Report No. 86-SR4. Center for Agricultural and Rural Development, Iowa State University, February.Google Scholar
Miller, D.J., and Paarlberg, P.L. 2001. “An Alternative Approach to Determining the Elasticity of Excess Demand Facing the United States.” Presented at 2001 meetings of the American Agricultural Economics Association.Google Scholar
Mittal, S., and Reimer, J.J.Would Indian Farmers Benefit from Liberalization of World Cotton and Sugar Markets?Agricultural Economics 38(2008):301–12.CrossRefGoogle Scholar
Orcutt, G.H.Measurement of Price Elasticities in International Trade.” The Review of Economics and Statistics 32(1950):117–32.CrossRefGoogle Scholar
Paarlberg, P.Endogenous Policy Formation in the Imperfect World Wheat Market.” Ph.D. dissertation. Purdue University, 1983.Google Scholar
Paarlberg, P. 2009. Personal communication.Google Scholar
Reimer, J.J., and Kang, S.M.Estimation of Trade and Domestic Distortions: An Application to World Agriculture.” Journal of Productivity Analysis 34(2010):257–65.CrossRefGoogle Scholar
Reimer, J.J., and Li, M.Trade Costs and the Gains from Trade in Crop Agriculture.” American Journal of Agricultural Economics 92,4(2010):1024–39.CrossRefGoogle Scholar
Sadoulet, E., and Janvry, A. deQuantitative Development Policy Analysis. Baltimore, MD: The John Hopkins University Press, 1995.Google Scholar
Thursby, J.G., and Thursby, M.C.Elasticities in International Trade: Theoretical and Methodological Issues.” Elasticities in International Agricultural Trade. Carter, C.A. and Gardiner, W.H., eds. Boulder, CO: Westview Press, 1988, pp. 1752.Google Scholar
Tweeten, L.The Demand for U.S. Farm Output.” Food Research Institute Studies 7(1967):343–69.Google Scholar
Tweeten, L.The Elasticity of Foreign Demand for U.S. Agricultural Products: Comment.” American Journal of Agricultural Economics 59,5(1977):737–38.CrossRefGoogle Scholar
Tyers, R., and Anderson, K.Imperfect Price Transmission and Implied Trade Elasticities in a Multi-commodity World.” Elasticities in International Agricultural Trade. Carter, C.A. and Gardiner, W.H., eds. Boulder, CO: Westview Press, 1988, pp. 255–95.Google Scholar
USDA AMS (U.S. Department of Agriculture Agricultural Marketing Service). 2012. Grain and Feed Market News. Internet site: Scholar
USDA GATS (U.S. Department of Agriculture Global Agricultural Trade System). 2012. Internet site: Scholar
USDA PSD (U.S.Department of Agriculture Production, Supply, and Distribution database). 2012. Internet site: Scholar