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Effects of Changes in U.S. Agricultural Production on Demand for Farm Inputs

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  • Shoemaker, Robbin

Abstract

The economic concept of constant returns to scale (CRS) may be too restrictive to give an accurate description of the agricultural sector. CRS assumes that a change in the level of agricultural production yields an equivalent change in the level of all inputs (such as farm machinery, labor, energy, land). The model used here, however, demonstrates that demand varies more for some farm inputs than others with changes in farm output, input prices, and technology, and that this effect can he calculated. The model uses a decomposition technique to show the effects of each of those changes individually on farm inputs.

Suggested Citation

  • Shoemaker, Robbin, 1986. "Effects of Changes in U.S. Agricultural Production on Demand for Farm Inputs," Technical Bulletins 157024, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerstb:157024
    DOI: 10.22004/ag.econ.157024
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    References listed on IDEAS

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    Cited by:

    1. Thomas W. Hertel & Marinos E. Tsigas, 1988. "Tax Policy and U.S. Agriculture: A General Equilibrium Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(2), pages 289-302.
    2. Stan G. Daberkow & Katherine H. Reichelderfer, 1988. "Low-Input Agriculture: Trends, Goals, and Prospects for Input Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(5), pages 1159-1166.
    3. Kuo S. Huang, 1991. "Factor Demands in the U.S. Food-Manufacturing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 615-620.
    4. Hertel, Thomas W. & Preckel, Paul V. & Huang, Wen-Yuan, 1989. "The CARD Linear Programming Model of U.S. Agriculture," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 41(02), pages 1-4.
    5. Rendleman, C. Matthew, 1993. "Estimation of Aggregate U.S. Demands for Fertilizer, Pesticides, and Other Inputs: A Model for Policy Analysis," Technical Bulletins 157035, United States Department of Agriculture, Economic Research Service.
    6. Atwood, Jay Dee & Hallam, Arne, 1990. "Farm Structure And Stewardship Of The Environment," 1990 Conference, January 6-9, Albuquerque, New Mexico 260176, Regional Research Committe NC-181: Determinants of Farm Size and Structure.

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    Keywords

    Agribusiness; Demand and Price Analysis;

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