Mliltiple Crop Supply and Factor Demand Component of the World Grains, Oilseeds, and Livestock Model

This paper reviews the crop supply component of the world grains, oilseeds, and livestock (GOL) model and attempts to develop an improved conceptual framework for specifying the multiple crop supply and input demand relationships in the GOL model. As a basis for examining and revising the crop supply component, the theoretical foundations for a multiple product production system and empirical studies related to. agricultural commodity supply response were reviewed. The revised specification of the crop supply equations consists of a nonlinear equation system of area, yield and production. The major emphasis on the revision of the crop supply component is to ensure consistent acreage allocation among crop alternatives, to more realistically capture cross-price effects or substitution possibilities between alternative crops and to include policy variables to reflect the effects of government farm policies on crop supply response