Abstract
Since the early 1970s world fossil fuel energy prices have risen dramatically. Assuming there is no significant breakthrough in en- ergy technology, the world will see further increases in energy prices. These changes will likely lead to economic adjustments in U. S. agriculture. A firm level linear programming model is used to evaluate what some of these adjustments could be on a Missouri grain farm. To obtain expected energy price affects on production mixes, energy prices are changed parametrically. Potential crop adjustments are from corn to single-crop soybeans to wheat as energy prices increase. Fertilization adjustments are from chemical to organic. Fuel consumption was inelastic with respect to price. Overall energy utilization was most responsive at two price levels—a fourth above 1975 and three times 1975.
Recommended Citation
Chavas, Jean-Paul and Kliebenstein, James B., "An Overview of Potential Impacts of Changing Petroleum Energy Prices on Grain Farms" (1977). UMR-MEC Conference on Energy / UMR-DNR Conference on Energy. 335, pp. 663-672.
https://scholarsmine.mst.edu/umr-mec/335
Meeting Name
4th Annual UMR-DNR Conference on Energy (1977: Oct. 11-13, Rolla, MO)
Document Type
Article - Conference proceedings
Session
Economics, Agriculture And Energy
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 1977 University of Missouri--Rolla, All rights reserved.
Publication Date
13 Oct 1977
Included in
Economics Commons, Energy Policy Commons, Environmental Policy Commons, Petroleum Engineering Commons
