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Analysis of Demand and Supply for some U.S. Crops through Tatonnement Modeling

By Raymond J. Schatzer, Burton C. English and Earl O. Heady

Abstract

During the last decade, two concerns have been raised about the future of U.S. crop production. These concerns are: A) Will the United States have enough land available in the future that is suitable for crop production? and b) What will future crop yields be? Future U.S. crop production is highly dependent upon both these issues. The real problem may not be the quantity of future crop production, but rather the price of the quantity that is available. The development of a model to answer this question is one of the objectives of this study. The other objective is the projection of prices and quantities for barley, corn, oats, sorghum, soybeans, and wheat for the year 2000 under alternative yield and land availability assumptions.

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