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.
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.
4th Annual UMR-DNR Conference on Energy (1977: Oct. 11-13, Rolla, MO)
Article - Conference proceedings
Economics, Agriculture And Energy
© 1977 University of Missouri--Rolla, All rights reserved.
13 Oct 1977