Did StarLink Reduce Import Demand for Corn?

Abstract

This study estimates the impact of reduced demand for U.S. corn during the 2000/01 marketing year caused by the StarLink-contamination event in the year 2000. A partial equilibrium model is constructed that separates both the domestic and foreign demand functions for corn into food and non-food demand curves. The complexities arising from the Loan Deficiency Payment (LDP) Program are also incorporated. The empirical results indicate that the reduction in Japanese corn demand alone would have reduced the average price received by U.S. corn producers in 2000/01 by between U.S. 4.17¢ to U.S. 5.18¢ per bushel if LDP payments did not partially offset the market impact. However, after adjusting for LDP payments, the average price received by U.S. corn producers dropped by only between U.S. $0.50¢ and U.S. 0.83¢ per bushel over the 2000/01 marketing year. This translates into a loss in revenue of between U.S. $48 and U.S. $78 million.

Impact of the Chinese embargo against MIR162 corn on Canadian corn producers

“…For example, a regression discontinuity analysis similar to that developed by Hahn, Todd, and Van der Klaauw (2001) was estimated, using daily, weekly, and/or monthly Chatham/Kent corn price quotes, but did not generate consistent results. A supply and demand system along the lines of Schmitz et al (2004Schmitz et al ( , 2005 was also considered, but unlike Japan, Chinese import allocation decisions are highly influenced by its state trading activities (Schmitz & Gray, 2000) and this type of analysis would involve modeling the complexities of the interface between agricultural policy and trade (e.g., Schmitz & Schmitz, 2012;Schmitz, Schmitz, & Dumas, 1997). Finally, a system-wide import demand system approach was explored, which would generate estimates of income and cross-price elasticities of Chinese import demand for different types of feed by country of origin (e.g., Schmitz & Seale, 2002).…”

Three essays on the potential economic impacts of biotech crops in the presence of asynchronous regulatory approval

“…Link rice 601 and 604, and Event 32 corn. In some of these instances trade disruptions have followed (Schmitz et al, 2004(Schmitz et al, , 2005Carter and Smith, 2005; More recently, concerns about trade disruptions from unapproved GM crops have increased as the GM crop pipeline moving towards or awaiting regulatory approval has expanded while the speed of regulatory approvals across different countries has become less synchronized (Krueger and Buanec 2008;EC DG AGRI, 2007;Backus et al,2008).…”

“…A handful of empirical studies have tackled this issue in the context of specific market disruptions from specific unapproved GM crop in some market. Schmitz et al, (2004Schmitz et al, ( , 2005…”