State-Level Agricultural Sector Policy Model: Baseline and Implications of the Dunkel Text on Agriculture for Iowa, A
Deborah L. Stephens, Daniel M. Otto, Patrick C. Westhoff
February 1992 [92-GATT 6]
Stephens, D.L., D.M. Otto, and P.C. Westhoff. 1992. "State-Level Agricultural Sector Policy Model: Baseline and Implications of the Dunkel Text on Agriculture for Iowa, A." CARD paper 92-GATT 6. Center for Agricultural and Rural Development, Iowa State University.
A better understanding of the relationship between a state's agricultural sector and the national agricultural economy increases the ability of agricultural interest groups to anticipate and understand policy developments. This paper develops and documents a state-level model of the Iowa agricultural sector. The model is used to evaluate the future performance of the Iowa agricultural economy, given a specific set of assumptions about the general economy, agricultural policies, the weather, and technology change. When the model is used to analyze the implications of the Dunkel text on agriculture, the increase in Iowa net farm income is found to be proportionally higher then the increase in U.S. net farm income, because Iowa's agricultural economy is concentrated in commodities that benefit from the Dunkel text.