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Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture

Published online by Cambridge University Press:  26 January 2015

Yan Liang
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, Mississippi
J. Corey Miller
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, Mississippi
Ardian Harri
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, Mississippi
Keith H. Coble
Affiliation:
Department of Agricultural Economics, Mississippi State University, Mississippi State, Mississippi
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Abstract

In this paper we consider factors that affect both crop prices and yields in order to examine supply responses of major crops in the Southeast. Due to the variable nature of crop production in the Southeast, previous studies that ignore price and yield risk may fail to capture one of the salient features of the region's agriculture. Our results indicate supply elasticity values for corn, cotton, and soybeans of approximately 0.670, 0.506, and 0.195, respectively. Compared with the results of studies in other regions, corn and cotton acres respond more to price changes and soybean acres respond less to price changes.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 2011

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