CROP BASIS PATTERNS IN THE PRESENCE OF SPATIAL COMPETITION AND GOVERNMENT INTERVENTION

Joe Parcell ()

No 26043, Working Papers from University of Missouri Columbia, Department of Agricultural Economics

Abstract: This study analyzes the effect of the Loan Deficiency Payment (LDP) program, established under the Federal Agriculture Improvement Reform (FAIR) act of 1996, on corn and soybean basis pattern patterns in Missouri. Additionally, spatial competition is incorporated into the basis models. Using weekly corn and soybean basis pattern data from 1993 through 2001 for multiple locations in Missouri, and incorporating a variable for when the LDP is in effect, empirical models examining factors affecting corn and soybean basis pattern patterns are estimated. Results indicate that the presence of the LDP program has a significant economic impact on soybean basis. Furthermore, spatial competition strengthens corn basis.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Marketing (search for similar items in EconPapers)
Pages: 34
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ags:umcowp:26043

DOI: 10.22004/ag.econ.26043

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