The Effect of Grain Prices on the U.S. Catfish Industry: Implications of U.S. Ethanol Production

This study estimates the relationship between catfish feed prices (per-unit cost) and relevant economic factors such as the price of farm-raised catfish, farm inputs, and feed ingredients, which include com, soybean meal, cottonseed meal and wheat middling. Given changes in these economic factors it was assumed that the responsiveness of feed cost not instantaneous, and a partial-adjustment model was used in estimation. Results show that a one-percent increase in com prices will cause a 0.062-percent increase in catfish feed cost in the short run and a 0.16-percent increase in the long run. A one-percent increase in soybean meal prices results in a 0.125 percent and 0.322 percent increase in catfish feed cost in the short run and long run, respectively.