DYNAMIC REGIONAL ANALYSIS OF THE CALIFORNIA ALFALFA MARKET WITH GOVERNMENT POLICY IMPACTS

Kazim Konyar · Keith C. Knapp

13 citations0/0 files storedRePEc: Research Papers in Economics

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Agricultural economics and policies Economics of Agriculture and Food Markets Agricultural Economics and Policy

Abstract

Alfalfa's heavy reliance on irrigation water and its role as an alternate to program crops makes it susceptible to changes in government farm policies. This article presents a dynamic spatial equilibrium model of the California alfalfa market. The model is used to forecast alfalfa acreage, prices paid and received, and transportation flows for the short run and the long run under the base year conditions. The base year results then are compared to a situation of changing demand due to reductions in federal water subsidies and the implementation of a cotton acreage-reduction program.

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References

1983Supply, Demand, and Technology in a Multiproduct Industry: Texas Field Crops 1939The Theory and Measurement of Demand 1987Dynamic Equilibrium in Markets for Perennial Crops

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