Marginal Implicit Values of Soybean Quality Attributes

Joe Parcell () and Jewelwayne Cain

No 162463, 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas from Southern Agricultural Economics Association

Abstract: Soybean quality is becoming more important as markets realize its impact in relation to utility. Soybean meal protein level impacts animal feed efficiency and soybean seed oil content signifies the amount of oil to be used for food, fuel or industrial purposes. Because differences in quality levels exist, quantifying the impacts of these quality-price differences is essential so that the soybean industry understands the implicit-value of enhancing trait levels within a component pricing system. We examine this quality-price relationship using a hedonic price function to estimate and analyze implicit prices attributed to protein and oil contents of U.S. soybeans. We added a spatial dimension in the model by incorporating inter-state competition in soybean quality attributes. We find price premiums associated with higher levels of protein and oil content in soybeans produced within-state. There are also price discounts associated with higher levels of protein and oil content in soybeans from competing states. This indicates the importance of spatial competition in analyzing implicit values of soybean quality attributes.

Keywords: Crop Production/Industries; Demand and Price Analysis; Marketing; Production Economics (search for similar items in EconPapers)
Pages: 20
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea14:162463

DOI: 10.22004/ag.econ.162463

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