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Impacts of Expanded Ethanol Production on Southern Agriculture

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  • Susanto, Dwi
  • Rosson, C. Parr, III
  • Hudson, Darren

Abstract

This study analyzes the potential impacts of expanded ethanol production on southern agriculture. Results of regression analysis suggest that acreage planted for field crops (corn, cotton, soybeans, and wheat) is inelastic with respect to relative prices. The results provide statistical evidence of potential significant acreage shifts favoring corn over cotton, soybeans, and wheat. Simulations indicate that higher corn prices will increase corn acreage, but the South continues to be a deficit corn region. U.S. corn production is capable of supplying domestic demand for ethanol, feed for livestock and poultry, and other uses, while maintaining exports at more than 2 billion bushels annually.

Suggested Citation

  • Susanto, Dwi & Rosson, C. Parr, III & Hudson, Darren, 2008. "Impacts of Expanded Ethanol Production on Southern Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(2), pages 1-12, August.
    • Handle: RePEc:ags:joaaec:47200
    DOI: 10.22004/ag.econ.47200
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    File URL: https://ageconsearch.umn.edu/record/47200/files/jaae-40-02-581.pdf
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    1. Amani Elobeid & Simla Tokgoz & Dermot J. Hayes & Bruce A. Babcock & Chad E. Hart, 2006. "Long-Run Impact of Corn-Based Ethanol on the Grain, Oilseed, and Livestock Sectors: A Preliminary Assessment, The," Center for Agricultural and Rural Development (CARD) Publications 06-bp49, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. Baker, Allen & Zahniser, Steven, 2007. "Ethanol Reshapes the Corn Market," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6, May.
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    Cited by:

    1. Serra, Teresa, 2011. "Volatility spillovers between food and energy markets: A semiparametric approach," Energy Economics, Elsevier, vol. 33(6), pages 1155-1164.

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    More about this item

    Keywords

    Agribusiness; Environmental Economics and Policy; Production Economics; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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