Impacts of Expanded Ethanol Production on Southern Agriculture

Dwi Susanto, C. Parr Rosson and Darren Hudson ()

Journal of Agricultural and Applied Economics, 2008, vol. 40, issue 02

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 shifts; corn exports; ethanol production; southern agriculture; Agribusiness; Environmental Economics and Policy; Production Economics; Research and Development/Tech Change/Emerging Technologies; Q11; Q42 (search for similar items in EconPapers)
Date: 2008
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Persistent link: http://EconPapers.repec.org/RePEc:ags:joaaec:47200

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