Death comes to us all. Life's but a walking shadow | A few days ago someone raised the question about 2014 corn acres if the 2013 price is $4. They used 2008 as an example of how fast producers could respond.
Who was that? I thought that it was an interesting question that deserved futher consideration.
Below is a chart plotting the percent change in corn acres vs the percent change in previous year's ave. price. I use the percent change because over the past forty years the absolute acres and price have changed substantially due to demand and other factors such as inflation, etc.
The question I think I am asking is how do producers respond to a change in price.
I used the average of '82 & '84 acres for '83 since '83 acres were greatly effected by weather. I didn't control for spring planting weather but we know much of the variation in acres planted is due to weather.
For what it is worth.
 (corn acreage vs price analysis-page-001.jpg)
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 corn acreage vs price analysis-page-001.jpg (57KB - 78 downloads)
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2014 corn acres vs 2013 price
