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U.S. Agricultural Production Capacity

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  • Chung J. Yeh
  • C. Leroy Quance
  • Luther G. Tweeten

Abstract

This study examines production capacity based on measures of farmers' and consumers' behavioral responses to alternative assumed prices. Impacts of inflation on capacity are also examined. A conceptual framework is outlined, analyzed, and applied to alternative scenarios of projected supply-demand conditions to 1985. Results indicated that long-range U.S. farm production capacity is unlikely to be challenged by 1985. Farmers have substantial capacity to respond to challenges posed by unfavorable weather or other disturbances at home and abroad. Because demands are expected to remain less than supply potential, unutilized supply capacity is expected to remain high.

Suggested Citation

  • Chung J. Yeh & C. Leroy Quance & Luther G. Tweeten, 1977. "U.S. Agricultural Production Capacity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(1), pages 37-48.
    • Handle: RePEc:oup:ajagec:v:59:y:1977:i:1:p:37-48.
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    File URL: http://hdl.handle.net/10.2307/1239607
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    Cited by:

    1. Dvoskin, Dan, 1988. "Excess Capacity in U.S. Agriculture: An Economic Approach to Measurement," Agricultural Economic Reports 308036, United States Department of Agriculture, Economic Research Service.

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