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The Demand For Farm Output

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  • Dunn, James E.
  • Heien, Dale

Abstract

This paper treats the demand for farm output as part of an interrelated factor demand system. The farm level outputs are meat, poultry, dairy, fruits and vegetables and other food. The processing and distribution inputs are labor, packaging, transportation and all other. Input demands are modeled using a restricted translog cost function which is conditional on capital stock in the processing sector. The results show that: each category of farm output demand is inelastic; capital stock is an important determinant of the demand for farm output; there is no substitution among various farm outputs and little substitution between outputs and other inputs; there is moderate substitution among the nonfarm inputs; and, increases in nonfarm input cost have significant negative effects on farm output demand.

Suggested Citation

  • Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(1), pages 1-10, July.
    • Handle: RePEc:ags:wjagec:32517
    DOI: 10.22004/ag.econ.32517
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    References listed on IDEAS

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    1. Dale M. Heien, 1982. "The Structure of Food Demand: Interrelatedness and Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 213-221.
    2. Robert G. Chambers, 1982. "Duality, the Output Effect, and Applied Comparative Statics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(1), pages 152-156.
    3. George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936, December.
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    Cited by:

    1. Gempesaw, Conrado M., II & Dunn, Jerry W., 1987. "The Impact Of Higher Prices Of Nonfarm-Inputs To Food Processing And Distribution On Food Prices And Quantities," Journal of Food Distribution Research, Food Distribution Research Society, vol. 18(2), pages 1-13, September.
    2. Kivanda, Lena & Fox, Glenn, 1993. "Falsification and the Practice of Agricultural Production Economists: A Methodological Assessment," Department of Agricultural Economics and Business 258724, University of Guelph.
    3. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, vol. 43(2), pages 248-256, May.
    4. Brester, Gary W. & Marsh, John M., 2001. "The Effects Of U.S. Meat Packing And Livestock Production Technologies On Marketing Margins And Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    5. Moore, Michael R. & Negri, Donald H., 1990. "The Bureau of Reclamation, Water, and Agriculture: Irrigation Water Conservation in the American West," 1990 Annual meeting, August 5-8, Vancouver, Canada 271012, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    7. Moore, Michael R. & Negri, Donald H., 1992. "A Multicrop Production Model Of Irrigated Agriculture, Applied To Water Allocation Policy Of The Bureau Of Reclamation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-15, July.
    8. Marsh, John M. & Brester, Gary W., 1999. "Technological Change In The U.S. Beef And Pork Sectors: Impacts On Farm-Wholesale Marketing Margins And Livestock Prices," Research Discussion Papers 29242, Montana State University, Department of Agricultural Economics and Economics, Trade Research Center.
    9. Gempesaw, Conrado M., II & Reisner, G.C. & Wobus, P.J., 1987. "A Farm To Retail Sectoral Analysis Of The Northeast Food Industry," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(2), pages 1-14, October.
    10. Capps, Oral, Jr., 1992. "Research Issues Facing The Food Distribution Sector: A Look Ahead," Journal of Food Distribution Research, Food Distribution Research Society, vol. 23(2), pages 1-20, June.

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    Keywords

    Demand and Price Analysis;

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