Effects of the Conservation Reserve Program on Elevator Merchandising Margins in Oklahoma

Brian Adam, Seung Jee Hong and Michael R. Dicks

Journal of Agricultural and Applied Economics, 2004, vol. 36, issue 1, 83-96

Abstract: The Conservation Reserve Program (CRP) takes cropland out of production for 10 years, reducing grain supplies available to elevators. Results suggest that the program has negatively impacted elevator merchandising margins, but that elevators adjusted rather quickly to CRP changes, making most of the adjustment within 1 year. The reduction in margins reflects an element of pressure on agribusinesses that has not been measured in previous studies.

Date: 2004
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