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An analysis of apple supply response

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  • Devadoss, Stephen
  • Luckstead, Jeff

Abstract

An empirical analysis of apple supply response is undertaken by modeling new plantings, removals, and yield. The important determinants of plantings are apple profits, cherry profits, weather, and lagged investment. These variables are highly significant, underscoring their importance in determining new planting decisions. In the removals equation, expected short-run revenues of apples and peaches were the important determinants, and the signs of the estimated coefficients for these variables are consistent with a priori expectations. For the yield equation, price and weather variables are significant, highlighting their relevance in determining apple yield.

Suggested Citation

  • Devadoss, Stephen & Luckstead, Jeff, 2010. "An analysis of apple supply response," International Journal of Production Economics, Elsevier, vol. 124(1), pages 265-271, March.
    • Handle: RePEc:eee:proeco:v:124:y:2010:i:1:p:265-271
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    Cited by:

    1. Brady, Michael P. & Marsh, Thomas L., 2013. "Do Changes in Orchard Supply Occur at the Intensive or Extensive Margin of the Landowner?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150452, Agricultural and Applied Economics Association.
    2. Zhao, Xin & Brady, Michael P. & Tozer, Peter R., 2015. "Do Farmers Really Plant Apples for Their Income and Cherries for Their Retirement? The Effects of Risk, Scope and Scale on Orchard Land Allocation," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205663, Agricultural and Applied Economics Association.
    3. Tozer, Peter R. & Marsh, Thomas L., 2018. "Dynamic regional model of the US apple industry: Consequences of supply or demand shocks due to pest or disease outbreaks and control," Agricultural Systems, Elsevier, vol. 164(C), pages 252-263.
    4. Luckstead, Jeff & Devadoss, Stephen, . "Optimal Timing of Removal and Planting of Perennial Crops in Anticipation of a New Cultivar," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 49(3).
    5. Jonathon Siegle & Gregory Astill & Zoë Plakias & Daniel Tregeagle, 2024. "Estimating perennial crop supply response: A methodology literature review," Agricultural Economics, International Association of Agricultural Economists, vol. 55(2), pages 159-180, March.

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