Analysis of the Soybean-to-Corn Price Ratio and its Impact on Farmers' Planting Decision-Making in Indiana

David Ubilava

No 6783, 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas from Southern Agricultural Economics Association

Abstract: In Indiana agricultural land is used mostly for corn and soybean harvesting. Rotated corn is a common practice, but in recent years, essentially due to the "ethanol boom" and increased profitability of corn production, many farmers have switched to continuous corn. Corn price increase affects the soybean-to-corn (STC) ratio, however, it is hypothesized that over time market effects will be felt, and return the ratio to its stable range. The threshold autoregressive model is used to analyze the monthly time series of STC ratio in Indiana. Results suggest that exogenous shocks will not have permanent effect on the STC price ratio, but will require, however, a reasonably long time to die out.

Keywords: Crop Production/Industries; Farm Management (search for similar items in EconPapers)
Pages: 9
Date: 2008
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saeaed:6783

DOI: 10.22004/ag.econ.6783

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