Supply Analysis for Corn in the United States: The Impact of Changing Government Programs
1972
Houck, J. P. | Ryan, M. E.
Acreage supply relationships for corn in the United States are analyzed for 1948–70. Emphasis is on the effect of changes in government policies because similar programs for acreage control and price support are the most likely form of future policies. A model for empirical evaluation of loan rates, support and diversion payments, and acreage restrictions is developed and tested. More than 95 percent of the variation in U.S. corn acreage during the study period can be associated with the selected policy variables. The approach suggested in this research appears to be applicable to other crops heavily influenced by government policy.
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