State-Level Output Supply and Input Demand Elasticities for Agricultural Commodities

Own- and cross-price production elasticities, estimated in four major agricultural states (California, Iowa, Texas, and Florida), measure the sensitivity to price changes of as many as 25 individual crop and livestock output supplies and six input demands. While most responses were highly inelastic, a wide range of elasticities occurred across States. The range was generally greater for crop supplies than for livestock supplies or input demands. The wide range of elasticities demonstrates the need for economic analysis to focus on specific groups of producers when assessing distributional consequences of policy changes.