CROP BASIS PATTERNS IN THE PRESENCE OF SPATIAL COMPETITION AND GOVERNMENT INTERVENTION

This study analyzes the effect of the Loan Deficiency Payment (LDP) program, established under the Federal Agriculture Improvement Reform (FAIR) act of 1996, on corn and soybean basis pattern patterns in Missouri. Additionally, spatial competition is incorporated into the basis models. Using weekly corn and soybean basis pattern data from 1993 through 2001 for multiple locations in Missouri, and incorporating a variable for when the LDP is in effect, empirical models examining factors affecting corn and soybean basis pattern patterns are estimated. Results indicate that the presence of the LDP program has a significant economic impact on soybean basis. Furthermore, spatial competition strengthens corn basis.


Issue Date:
2002
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/26043
Total Pages:
34
Series Statement:
Agricultural Economics Working Paper No. 2002-07




 Record created 2017-04-01, last modified 2017-08-24

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