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Rational Expectations Estimation of Georgia Soybean Acreage Response

Nicolas B. C. Ahouissoussi, Christopher McIntosh and Michael E. Wetzstein

Journal of Agricultural and Applied Economics, 1995, vol. 27, issue 2, 500-509

Abstract: The general method of moments procedure is used for estimating a soybean acreage response function assuming that producers hold rational expectations. Results indicate that soybean, corn, and wheat futures prices, lagged acreage, and government programs are significant factors for determining soybean plantings. Implications of the results are that crop acreage selection by Georgia producers is not very responsive to demand shocks. Thus, producers in other regions are more likely to absorb impacts from these shocks on crop acreage selection.

Date: 1995
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