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Corn Prices, the Fuel Shortage and Optimal Corn Harvesting Strategies*

Published online by Cambridge University Press:  28 April 2015

Ronald Raikes
Affiliation:
Iowa State University
Duane G. Harris
Affiliation:
Iowa State University

Extract

The unprecedented demand for United States feed grains has boosted corn prices to record levels. If corn prices continue at these record levels, corn production practices and the demand for corn production inputs likely will be affected. One of the corn production practices that may be affected is harvesting. And because of the increased use of field shelling and artificial drying, changes in corn-harvesting practices may have an impact on the demand for propane fuel used in corn drying. Future supplies of propane, however, may be limited, or higher priced, or both. The analysis reported in this paper is an attempt to estimate the impact of higher corn and propane prices on harvesting strategies, on the quantity of propane demanded, and on other related variables. The results of the analysis suggest that, given higher corn prices, the amount of propane demanded for corn drying will increase dramatically, even with much higher propane prices.

Type
Research Article
Copyright
Copyright © Southern Agricultural Economics Association 1974

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Footnotes

*

Iowa Agriculture and Home Economics Experiment Station Journal paper No. J-7683. Project No. 1874.

References

[1] Hill, Lowell D.Economic Determinants of the Farm and Elevator Trends in the Volume of Corn Artificially Dried.American Journal of Agricultural Economics, 52: 555, Nov. 1970.CrossRefGoogle Scholar
[2] Iowa Cooperative Extension Service, “Prices of Iowa Farm Products 1930-1972.Economics Information Series: 176, May 1973.Google Scholar
[3] Mikes, Richard J., Fletcher, Lehman B., and Futrell, Gene A.. Iowa's Grain Elevator Industry: Factors Affecting Its Organization and Structural Adjustment. Iowa Agricultural and Home Economics Experiment Station Research Bulletin 576, 1973.Google Scholar
[4] U.S. Dept. of Agriculture, Statistical Reporting Service, Agricultural Prices, Dec. 1972.Google Scholar
[5] Winterboer, Ronald. Background Information for use with Crop-Opt System FM 1627. Iowa Cooperative Extension Service FM 1628, 11 pp., Dec. 1972.Google Scholar