Impacts of Expanded Ethanol Production on Southern Agriculture

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.

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Journal Article
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Journal of Agricultural and Applied Economics, 40, 2
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JEL Codes:
Q11; Q42

 Record created 2017-04-01, last modified 2020-10-28

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