Hostname: page-component-cd9895bd7-jn8rn Total loading time: 0 Render date: 2024-12-27T07:45:07.735Z Has data issue: false hasContentIssue false
  • English
  • Français

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
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Baker, A., and Zahniser, S.. “Ethanol Reshapes the Corn Market.” Amber Waves, Vol. 4, Issue 2, 2006.Google Scholar
Elobeid, A., Tokgoz, S., Hayes, D.D., Babcock, B.A., and Hart, C.E.. “The Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A Preliminary Assessment.” Card Briefing Paper 06-BP 49, Center for Rural Development. Ames, IA: Iowa State University, November 2006.Google Scholar
FAPRI U.S. and World Agricultural Outlook 2007. F APRI Staff Report 07-FSR 1. Food and Agricultural Policy Research Institute, Iowa State University-University of Columbia, Ames, Iowa, January 2007. Available online at http://www.fapri.iastate.edu/Outlook2007/.Google Scholar
Ginder, R.G. “Potential Infrastructure Constraints on Ethanol Production in Iowa.” Iowa State University, University Extension, November 2006. Available online at: http://www.extension.iastate.edu/ag/ginderpresent.indd.pdf.Google Scholar
Green, W.H. Econometric Analysis, 5th ed. Upper Saddle River, NJ: Prentice Hall, 2003.Google Scholar
Peel, D.S. “An Overview of the Impacts of increased Corn Demand for Ethanol.” Fact Sheet: Livestock Marketing Information Center. Department of Agricultural Economics, Oklahoma State University, February 2007.Google Scholar
Schoonover, H., and Muller, M.. “Staying Home: How Ethanol Will Change U.S. Corn Exports.” Minneapolis, MN: Institute for Agriculture and Trade Policy, December 2006.Google Scholar
USDA. “USDA Agricultural Projections to 2017.” Long-Term Projections Report OCE-2008-1, Office of the Chief Economist. World Agricultural Outlook Board, Washington, DC, February 2008.Google Scholar
Westcott, P.C. “Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust?” ERS, USDA, Washington, DC, May 2007.Google Scholar