In this paper we consider factors that affect both crop prices and yields in
order to examine supply responses of major crops in the Southeast. Due to
the variable nature of crop production in the Southeast, previous studies
that ignore price and yield risk may fail to capture one of the salient
features of the region's agriculture. Our results indicate supply elasticity
values for corn, cotton, and soybeans of approximately 0.670, 0.506, and
0.195, respectively. Compared with the results of studies in other regions,
corn and cotton acres respond more to price changes and soybean acres
respond less to price changes.