The Impact of a Sorghum-Based Ethanol Plant on Local Sorghum Basis and Cotton Acreage: A Spatial Approach

Bing Liu, Darren Hudson, Jamie Bologna Pavlik and Michael Farmer

Journal of Agribusiness, 2018, vol. 36, issue 01

Abstract: This study examines the impacts of a sorghum-based ethanol plant established in a major cotton-producing area on local sorghum basis and cotton acreage distribution using county-level panel data from 2002 to 2014. Spatial econometric models are employed to account for any spatial dependence. Our results support the conclusion that sorghum basis and cotton acreage within a county depends on characteristics of its neighbors. Specifically, the findings indicate that the sorghum basis increased by 1.5 cents per bushel in the short run resulting from hosting a 40-million-gallon ethanol plant, and a short-run increase by 0.2% in cotton acres over all counties.

Keywords: Agribusiness; Crop Production/Industries (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/302475/files/BingEthanolCotton.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:302475

DOI: 10.22004/ag.econ.302475

Access Statistics for this article

More articles in Journal of Agribusiness from Agricultural Economics Association of Georgia Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search (aesearch@umn.edu).