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Government policy cross effects: The cotton and dairy programs' influence on alfalfa hay markets

Author

Listed:
  • Steven C. Blank

    (Extension Economists in the Department of Agricultural Economics, University of Arizona)

  • Harry W. Ayer

    (Extension Economists in the Department of Agricultural Economics, University of Arizona)

Abstract

To illustrate the magnitude of government policy impacts on nonprogram products, estimates are presented of the 1986-1987 crop year effects of both the 1986 cotton and dairy programs on the Arizona alfalfa hay market. These policy “cross effects” are calculated from simulation results of a simple econometric model. The estimated impact of $8.91 per ton represents a nine percent reduction in gross unit revenues from hay.

Suggested Citation

  • Steven C. Blank & Harry W. Ayer, 1987. "Government policy cross effects: The cotton and dairy programs' influence on alfalfa hay markets," Agribusiness, John Wiley & Sons, Ltd., vol. 3(4), pages 385-392.
    • Handle: RePEc:wly:agribz:v:3:y:1987:i:4:p:385-392
    DOI: 10.1002/1520-6297(198724)3:4<385::AID-AGR2720030404>3.0.CO;2-H
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    References listed on IDEAS

    as
    1. W. Allen Spivey & William J. Wrobleski, 1979. "Econometric Model Performance in Forecasting and Policy Assessment," Books, American Enterprise Institute, number 936540, September.
    2. Blake, Martin J. & Clevenger, Tom, 1984. "A Linked Annual And Monthly Model For Forecasting Alfalfa Hay Prices," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 9(1), pages 1-5, July.
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    Cited by:

    1. Blank, Steven C. & Orloff, Steve B. & Putnam, Daniel H., 2001. "Sequential Stochastic Production Decisions For A Perennial Crop: The Yield/Quality Tradeoff For Alfalfa Hay," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-17, July.
    2. Knapp, Keith & Konyar, Kazim, 1990. "A Dynamic Spatial Equilibrium Model of the California Alfalfa Market," Research Reports 251936, University of California, Davis, Giannini Foundation.
    3. Konyar, Kazim & Knapp, Keith C., 1990. "Dynamic Regional Analysis Of The California Alfalfa Market With Government Policy Impacts," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(1), pages 1-11, July.
    4. R. K. Skaggs & Donald L. Snyder, 1992. "A comparison of selected methods for forecasting monthly alfalfa hay prices," Agribusiness, John Wiley & Sons, Ltd., vol. 8(4), pages 309-321.
    5. Blank, Steven & Erickson, Kenneth & Hallahan, Charles, 2012. "Rising Farmland Values: An Indicator of Regional Economic Performance or a Speculative Bubble?," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2012, pages 1-11.

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