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U.S. Agricultural Policy and Gasohol: A Policy Simulation
Author(s) -
Meekhof Ronald L.,
Tyner Wallace E.,
Holland Forrest D.
Publication year - 1980
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1240195
Subject(s) - agriculture , agricultural economics , commodity , economics , production (economics) , government (linguistics) , agricultural policy , macroeconomics , market economy , geography , archaeology , linguistics , philosophy
This research uses a stochastic simulation model to evaluate the implications of alternative gasohol programs for a large segment of the food and agricultural sector‐corn and soybean producers, consumers, and taxpayers. The impacts on corn and soybean prices, production, acreage planted, carryover stocks, exports, and commodity program expenditures are presented. The research findings indicate that alcohol production levels below 2.0 billion gallons do not result in serious dislocations in the agricultural sector. As the level of alcohol production increases and more grain is required, corn prices rise significantly, stocks fall to extremely low levels, exports decline, and government expenditures increase greatly.