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Effects of the Conservation Reserve Program on Elevator Merchandising Margins in Oklahoma

Published online by Cambridge University Press:  28 April 2015

Brian D. Adam ,
Seung Jee Hong  and
Michael R. Dicks
Brian D. Adam
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, OK
Seung Jee Hong
Affiliation:
Department of Agricultural Economics, Oklahoma State University, and economist, Korea Rural Economics Institute
Michael R. Dicks
Affiliation:
Department of Agricultural Economics, Oklahoma State University, Stillwater, OK
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Abstract

The Conservation Reserve Program (CRP) takes cropland out of production for 10 years, reducing grain supplies available to elevators. Results suggest that the program has negatively impacted elevator merchandising margins, but that elevators adjusted rather quickly to CRP changes, making most of the adjustment within 1 year. The reduction in margins reflects an element of pressure on agribusinesses that has not been measured in previous studies.

Keywords

agribusinessConservation Reserve Programcountry elevatorsland retirement programsmerchandising marginsQ1Q2D4L1
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 83 - 96
Copyright
Copyright © Southern Agricultural Economics Association 2004

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