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Not All Thin Markets Are Alike: The Case of Organic and Non‐genetically Engineered Corn and Soybeans

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  • Sharon Raszap Skorbiansky
  • Michael K Adjemian

Abstract

We use time series methods to explore the relationship between prices for two different niche versions of feed corn and soybeans, and their conventional counterparts. Whereas organic versions are linearly cointegrated, and their premia are high and stable, non‐GE products – which are nonlinearly cointegrated – exhibit narrower premia that are subject to collapse. Because organics are also non‐GE, these differences point to the value of a well‐recognised and enforced USDA organic label and/or the importance consumers place on the non‐GE attributes of organic products.

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  • Sharon Raszap Skorbiansky & Michael K Adjemian, 2021. "Not All Thin Markets Are Alike: The Case of Organic and Non‐genetically Engineered Corn and Soybeans," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 117-133, February.
    • Handle: RePEc:bla:jageco:v:72:y:2021:i:1:p:117-133
    DOI: 10.1111/1477-9552.12393
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    Cited by:

    1. Hadachek, Jeffrey & Saitone, Tina L. & Sexton, Richard J. & Raszap Skorbiansky, Sharon & Thornsbury, Suzanne & Effland, Anne, 2022. "Organic Feed Grains and Livestock: Factors That Influence Outcomes in Thinly Traded Markets," USDA Miscellaneous 319355, United States Department of Agriculture.
    2. Skorbiansky, Sharon Raszap & Saavoss, Monica & Camp, Kevin M., 2022. "The Economics of Plant-Based Milk," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322496, Agricultural and Applied Economics Association.
    3. Sharon Raszap Skorbiansky & Monica Saavoss & Hayden Stewart, 2022. "Cow's milk still leads in the United States: The case of cow's, almond, and soy milk," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 204-214, March.
    4. Hadachek, Jeffrey & Saitone, Tina L & Sexton, Richard J & Skorbiansky, Sharon Raszap & Thornsbury, Suzanne & Effland, Anne, 2022. "Organic Feed Grains and Livestock: Factors That Influence Outcomes in Thinly Traded Markets," Economic Research Report 327179, United States Department of Agriculture, Economic Research Service.

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