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Land Allocation Among The Main Crops In Argentina: Estimation Of Price And Land Elasticities

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  • Arancibia, Rodrigo García
  • Guiguet, Edith Depetris
  • Rossini, Gustavo
  • Coronel, Mariano
Abstract
In the past twenty years, there have been significant changes in land allocation among the main crops in Argentina. The aim of this paper was to analyze how those changes responded to variations in their relative prices in the short-term and quantify their responses. Additionally, it focused on understanding how the hectares devoted to a particular crop responded to changes in the total planted area. For this purpose a system of land allocation equations was estimated for the period 1980-2014. The results showed that the area planted with corn, soybean, sunflower and wheat responded to their own prices, being inelastic in all cases. A statistically significant and negative cross-price elasticity was observed for sunflower and corn. The other cross-price elasticities showed substitution for land use but they were not statistically significant. The land elasticities revealed to be elastic for wheat and inelastic for corn, soybean and sunflowers, while not significant for sorghum

Suggested Citation

  • Arancibia, Rodrigo García & Guiguet, Edith Depetris & Rossini, Gustavo & Coronel, Mariano, 2016. "Land Allocation Among The Main Crops In Argentina: Estimation Of Price And Land Elasticities," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(3), pages 1-13, July.
    • Handle: RePEc:ags:ijfaec:244387
    DOI: 10.22004/ag.econ.244387
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    References listed on IDEAS

    as
    1. Vorotnikova, Ekaterina & Asci, Serhat & Seale, James, 2014. "Effect of Relative Price Changes of Top Principle Crops on Farm Land Allocation in Post-Soviet Russia: Do Prices Matter?," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170681, Agricultural and Applied Economics Association.
    2. Vorotnikova, Ekaterina & Seale, James L. Jr., 2013. "Effects of Relative Price Changes on the Land Allocation Dynamics among Top Staple Crops in the U.S. before and after the Energy Policy Act of 2005," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150455, Agricultural and Applied Economics Association.
    3. Theil, Henri, 1979. "A differential approach to input-output analysis," Economics Letters, Elsevier, vol. 3(4), pages 381-385.
    4. Vorotnikova, Ekaterina & Asci, Serhat & Seale, James L., Jr., 2013. "Effect of Relative Price Changes of Top Principle Crops on U.S. Farm Land Allocation," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143099, Southern Agricultural Economics Association.
    5. Seale, James L. & Vorotnikova, Ekaterina & Asci, Serhat, 2014. "An empirical input allocation model for the multiproduct firm," Economics Letters, Elsevier, vol. 124(3), pages 367-369.
    6. Vorotnikova, Ekaterina & Seale, James, 2014. "Land Allocation Dynamics in China among Five Top Staple Crops: Corn, Soybeans, Wheat, Rice, and Cotton from 1985-2009," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162539, Southern Agricultural Economics Association.
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