Spatial Production Concentration, Demand Uncertainty, and Multiple Markets
研究美国主要大田作物生产在地理上集中于少数产区的原因,分析终端市场分布和需求不确定性如何影响农户的种植面积分配,以及运输成本上升和可用耕地变化带来的均衡效应。
The geographic concentration of production of main field crops in several growing regions is a distinctive feature of U.S. agriculture. Among many possible reasons for spatial concentration, I study here the effects of the distribution of end users and terminal markets on acreage allocation. The presence of multiple terminal markets in a growing area may allow for a more flexible marketing plan, along with introducing more idiosyncratic demand uncertainty associated with each consumption point. To take better advantage of future marketing opportunities, growers, depending on their location relative to terminal markets, may adjust the crop mix produced on the farm. I characterize the types of environments that lead to a spatial production concentration of a commodity in a growing area. I also analyze the equilibrium effects of an increase in transportation costs and a shift in acreage available for planting on spatial acreage allocation.