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How Sensitive are Crop Yields to Price Changes and Farm Programs?

Published online by Cambridge University Press:  28 April 2015

Jung-Sup Choi  and
Peter G. Helmberger
Jung-Sup Choi
Affiliation:
Korea Rural Economic Institute
Peter G. Helmberger
Affiliation:
University of Wisconsin Madison
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Abstract

A two-stage approach is used to estimate sensitivity of corn, wheat, and soybean yields to changes in prices and land idled. Estimated elasticity of demand for fertilizer per acre with respect to expected output price equals 0.47, 0.10, and 0.82 for corn, wheat, and soybeans. Upper estimates of the elasticity of yield with respect to fertilizer equals +0.58, +0.29, and +0.16 for corn, wheat, and soybeans. Yields are found to be quite insensitive to price changes. Fertilizer demands and yields are insensitive to land idled under farm programs.

Keywords

cornfarm programsfertilizer demandssoybeanswheatyields
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 25 , Issue 1 , July 1993 , pp. 237 - 244
Copyright
Copyright © Southern Agricultural Economics Association 1993

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