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Impacts of Expanded Ethanol Production on Southern Agriculture

Published online by Cambridge University Press:  26 January 2015

Dwi Susanto ,
C. Parr Rosson  and
Darren Hudson
Dwi Susanto
Affiliation:
Department of Agricultural Economics, Texas AgriLIFE Research and AgriLIFE Extension, Texas A&M University, College Station, TX
C. Parr Rosson
Affiliation:
Department of Agricultural Economics, Texas AgriLIFE Research and AgriLIFE Extension, Texas A&M University, College Station, TX
Darren Hudson
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, MS
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Abstract

This study analyzes the potential impacts of expanded ethanol production on southern agriculture. Results of regression analysis suggest that acreage planted for field crops (corn, cotton, soybeans, and wheat) is inelastic with respect to relative prices. The results provide statistical evidence of potential significant acreage shifts favoring corn over cotton, soybeans, and wheat. Simulations indicate that higher corn prices will increase corn acreage, but the South continues to be a deficit corn region. U.S. corn production is capable of supplying domestic demand for ethanol, feed for livestock and poultry, and other uses, while maintaining exports at more than 2 billion bushels annually.

Keywords

acreage shiftscorn exportsethanol productionsouthern agricultureQ11Q42
Type
Invited Paper Sessions
Information
Journal of Agricultural and Applied Economics , Volume 40 , Issue 2 , August 2008 , pp. 581 - 592
Copyright
Copyright © Southern Agricultural Economics Association 2008

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