SOUTHERN JOURNAL OF AGRICULTURAL ECONOMICS DECEMBER, 1978 THE PRICING EFFICIENCY OF CORN IN A MINOR SURPLUS PRODUCTION AREA

The U.S. grain marketing system frequently compete with Toledo elevators for corn is cited as a fairly good working example of the markets, principally in the New England perfect market concept. In general, research states. has shown that prices change as predicted, to A general theoretical model that describes account for the changes in the time, place, and the yearly pattern of competitively efficient form of the commodity. Much of the research prices in a market with supply characteristics done on grain prices over space has con- such as those described in western New York is centrated on the major grain producing states shown in Figure 1. Starting with the harvest and/or has been cast in the Judge and Wallace [1] general equilibrium framework. The author FIGURE 1. THEORETICAL FARM PRICE reports the results of an analysis of corn pric- LIMITS IN WESTERN NEW ing efficiency in a minor surplus area (western YORK New York) located in a much larger deficit area Toledo (in-hopper price) (the northeastern U.S.). " ° ^asotn co' ^ from C Toledo price (in-hopper