Wheat Acreage Response: Investigation a Regional Econometric Investigation

Kenneth W. Bailey and Abner W. Womack

Journal of Agricultural and Applied Economics, 1985, vol. 17, issue 2, 171-180

Abstract: An econometric model of planted wheat acreage was estimated for five distinct production regions in the United States. This structural investigation represents an update of previous published work with specific attention given to policy program variables, weather, production cost, risk, market price influences, and program participation. Estimated results indicated regional divergence in responsiveness to government program variables. The most significant divergence occurred in the Cornbelt and Southeast—soft red winter wheat areas. Results indicate that management of the wheat program from the USDA level will contain countervailing production incentives unless these regional characteristics are taken into consideration in policy directives.

Date: 1985
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