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Northeast Soybean Acreage Response Using Expected Net Returns

Published online by Cambridge University Press:  10 May 2017

Cecil W. Davison  and
Brad Crowder
Cecil W. Davison
Affiliation:
Commodity Economics Division, Economic Research Service, U.S. Department of Agriculture
Brad Crowder
Affiliation:
Bureau of Reclamation, U.S. Department of Interior
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Abstract

Expected prices and expected net returns from cropping activities are used to estimate soybean acreage response in the Northeast. Futures prices and lagged cash prices constitute proxies for price expectations. Expected net returns appear as good or better than expected prices for estimating acreage response. Short-run and long-run elasticities of soybean acreage with respect to expected net returns from soybeans are estimated as 0.5 and 1.6 for the northeast region. Soybean acreage appears less responsive to changes in expected net returns than to expected changes in prices.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 20 , Issue 1 , April 1991 , pp. 33 - 41
Copyright
Copyright © 1991 Northeastern Agricultural and Resource Economics Association 

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Footnotes

The authors thank Nathan Childs, Joseph Glauber, Stephanie Mercier, Loren Tauer, and two anonymous NJARE reviewers for helpful comments and suggestions, and James Langley for commodity and program data.

The views expressed are the authors’ and do not necessarily represent those of the Economic Research Service or the U.S. Department of Agriculture.

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