Crop Acreage Responses?

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Crop acreage responses are related to economic factors as well as climate variables. Every state has productivity differences due to climate variables like temperature and precipitation, as well as economic variables like input prices of and of crop output. Some states have a comparative advantage over other states in growing crops. This heterogeneity of climate makes some states good at producing crops that influence areas of planted crop acreage and yields. The literature suggested that climate has an influence on cropping area and cropping intensity (Toshichika and Ramankutty, 2015). Output prices have an influence on farmers’ decision-making process in allocating land and higher output prices related to price volatility (Gilbert and…show more content…
The results also show that due to crop price changes it causes a decline in crop acreage. Crop acreage elasticity helps with decision-making regarding farmers’ expectation of demand for crops and inputs (Haile et al. 2014). This study also mentions that inelastic supply causes an increase in crop prices, which have an impact on crop demand as well (Haile et al. 2014). It also mentions that an increase of output prices acts as a signal for farmers to increase cropland acreage (Haile et al. 2014). Soybean crop acres planted vary more as compared with other crops. Moreover, global corn acreage planted increases in exchange with soybean acreage (Haile et al. 2014). Output price acts differently with national-level crop acreage decisions than that of global-level crop acreage decisions. National-level harvesting and planting times are inelastic as compared with global harvesting and planting times throughout the year, which can adjust the supply of crops with changing prices (Haile et al. 2014). Our research tried to learn how climate and geographical variations, along with an economic variable, could impact multiple crop acreage decisions among farmers in North Dakota, South Dakota, and Minnesota. We are focusing on six crops: corn, soybeans, barley, wheat, canola, and sunflowers. We know that due to geographical variations, some
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