Hostname: page-component-cd9895bd7-lnqnp Total loading time: 0 Render date: 2024-12-28T14:55:17.419Z Has data issue: false hasContentIssue false
  • English
  • Français

Commodity Policy, Price Incentives, and the Growth in Per-Acre Yields

Published online by Cambridge University Press:  28 April 2015

William E. Foster  and
Bruce A. Babcock
William E. Foster
Affiliation:
North Carolina State University, Raleigh, North Carolina
Bruce A. Babcock
Affiliation:
Iowa State University, Ames, Iowa
Get access Rights & Permissions [Opens in a new window]

Abstract

We estimate the influence of policy-induced price changes and of technology supply on North Carolina flue-cured tobacco yields. The decline in land rent and effective output price that accompanied a 1965 policy change from acreage allotments to poundage quotas caused a 12 percent decrease in yields. Farmer yields were more responsive to yield-increasing technologies under acreage allotments than under poundage quotas. Annual yield growth was 0.5 percent under poundage quotas and 4.32 percent under acreage allotments. The growth rate decline is attributable to changes in relative prices and to a slowdown in the supply of available technologies.

Keywords

commodity policyendogenous yield growthflue-cured tobaccotechnical change
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 25 , Issue 1 , July 1993 , pp. 253 - 265
Copyright
Copyright © Southern Agricultural Economics Association 1993

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Babcock, B. A. and Foster, W. E.. “Economie Rents under Supply Controls and Marketable Quota.” Amer. J. Agr. Econ. 74(1992):630–37.CrossRefGoogle Scholar
Babcock, B. A. and Foster, W. E.. “Measuring the Potential Contribution of Plant Breeding to Crop Yields: Flue-Cured Tobacco, 1954 - 1987.” Amer. J. Agr. Econ. 73(1991):850–59.CrossRefGoogle Scholar
Ball, V. E. “Modeling Supply Response in a Multiproduct Framework.” Amer. J. Agr. Econ. 70(1988):813–25.CrossRefGoogle Scholar
Beck, A. C. “The Social Cost on Production Control in the Australian Egg Industry.” Rev. of Mktg. and Agr. Econ. 42(1974):240–56.Google Scholar
Bordeaux, A. F., Hoover, D. M., and Toussaint, W. D.. “The Lease and Transfer Program for Flue-Cured Tobacco 1962-1963.” A. E. Information Series 129. Department of Economics, North Carolina State University, September, 1966.Google Scholar
Bowman, D. T., Wernsman, E. A., Gorbin, T. C., and Tart, A. G.. “Contribution of genetics and production technology to long-term yield and quality gains in flue-cured tobacco. Tob. Sci. 28(1984):30–35.Google Scholar
Davies, S.The Diffusion of Process Innovation. Cambridge University Press, Cambridge, New York. 1976.Google Scholar
Department of Crop Science, North Carolina State University. “Measured Crop Performance: Tobacco.” Research Reports various years.Google Scholar
Foster, W. E. and Babcock, B. A.. The Effects of Government Programs on Flue-Cured Tobacco Yields.” Tob. Sci. 34(1990):4–8.Google Scholar
Griliches, Z. “Hybrid Corn: An Exploration in the Economics of Technical Change.” Econometrica 25(1957):501–22.CrossRefGoogle Scholar
Grise, V. N. and Griffin, K. F.. “The U.S. Tobacco Industry.” U.S.D.A., E.R.S., Agrie. Econ. Rep. 589. 1988.Google Scholar
Hoag, D. L., Babcock, B. A. and Foster, W. E.. “Field-Level Measurements of Land Productivity and Program Slippage.” Amer. J. Agr. Econ. 75(1993): 181–89.CrossRefGoogle Scholar
Hoover, D. M. “Lease and Transfer of Flue-Cured Tobacco Marketing Quota among Farms for the 1966 and 1967 Crop Year: Preliminary Report. “ Economics Information Report No. 6. Department of Economics, North Carolina State University, December, 1967.Google Scholar
Houck, J. P. and Ryan, M. E.. “Supply Analysis for Corn in the United States: The Impact of Changing Government Programs.” Amer. J. Agr. Econ. 54(1972): 184–91.CrossRefGoogle Scholar
Johnson, P. R.The Economics of the Tobacco Industry. New York: Praeger, 1984.Google Scholar
Kim, T. K., Hayes, D. J., and Hallam, A.. “Technology Adoption Under Price Uncertainty.” J. Dev. Econ. 38(1992):245–53.CrossRefGoogle Scholar
Lee, D. R. and Helmberger, P. G.. “Estimating Supply Response in the Presence of Farm Programs.” Amer. Agr J. Econ. 67(1985): 193–203.CrossRefGoogle Scholar
Love, H. A. and Foster, W. E.. “Commodity Program Slippage Rates for Corn and Wheat.” W. Agr J. Econ. 15(1990):272–81.Google Scholar
Mansfield, E. “Technical Change and the Rate of Imitation.” Econometrica 29( 1961 ):741 -66.CrossRefGoogle Scholar
Miller, T. and Tolley, G.. “Technology Adoption and Agricultural Price Policy.” Amer. Agr J. Econ. 70(1989):847–57.CrossRefGoogle Scholar
Moschini, G. “Modeling the Supply Response of Supply-Managed Industries: A Review of Issues: Can. J. Agr. Econ. 37(1989):379–92.CrossRefGoogle Scholar
North Carolina Department of Agriculture. North Carolina Agricultural Statistics. Various issues, 1955-1988.Google Scholar
Pugh, C. R. and Hoover, D. M.. “Lease Rates in North Carolina Counties under the Program for Flue-Cured Tobacco.” Presented at the 29th Tobacco Workers Conference, Lexington, Kentucky, January, 1981.Google Scholar
Rausser, G. C., Zilberman, D., and Just, R. E.. “The Distributional Effects of Land Controls in Agriculture.” W. J. Agr. Econ. 9(1984):215–32.Google Scholar
Seagraves, J. A. “Capitalized Values of Tobacco Allotments and the Rate of Return to Allotment Owners.” Amer. J. Agr. Econ. 51(1969):320–34.CrossRefGoogle Scholar
Tegene, A., Huffman, W. E., and Miranowski, J. A.. “Dynamic Corn Supply Functions: A Model with Explicit Optimization.” Amer. J. Agr. Econ. 70(1988): 103–11.CrossRefGoogle Scholar
Toussaint, W. D. “North Carolina Agent Estimates of Tobacco Lease Rates, 1982-88.” Unpublished mimeo.Google Scholar
United States Department of Agriculture, Economics Research Service (a). “Current Developments in Farm Real Estate.” Various years.Google Scholar
United States Department of Agriculture, Economics Research Service (b). “Farm Real Estate Market Developments, Outlook and Situation Report.” Various years.Google Scholar
United States Department of Agriculture. Agricultural Statistics. Various years.Google Scholar
Weisgerber, P. “Productivity of Diverted Crop Land.” U. S. Department of Agriculture, Economics Research Service, ERS-398. April, 1969.Google Scholar