Article
THE IMPACT OF BIOFUELS POLICY AND
DROUGHT ON THE U.S. GRAIN AND
LIVESTOCK MARKETS
Department of Agricultural Economics: Faculty Publications
Date of this Version
1-1-2015
Citation
Journal of Agricultural and Applied Economics, 47, 1 ( 2015): 77–103
Abstract
This article examines the impact of the 2012 drought and the biofuels mandate on the U.S. grain and livestock markets and estimates the mandate waiver required to offset the impact on the corn price. The framework used is a stochastic equilibrium displacement model that integrates the beef, pork, and poultry markets with the corn, distillers’ grain, soybean, soymeal, and ethanol markets. The corn and beef markets are found to be the most vulnerable. A mandate waiver of approximately 23% is required to fully negate the impact of the drought on corn prices. The waiver is equivalent to a 13.7% reduction in ethanol consumption.
Citation Information
Sunil P. Dhoubhadel, Azzeddine M. Azzam and Matt C. Stockton. "THE IMPACT OF BIOFUELS POLICY AND
DROUGHT ON THE U.S. GRAIN AND
LIVESTOCK MARKETS" (2015) Available at: http://works.bepress.com/sunil-dhoubhadel/1/
Copyright 2015 Southern Agricultural Economics Association
Open access
doi:10.1017/aae.2014.6