The Effect of Energy Policy Act (EPA-2005) on Agricultural Land Allocation Dynamics in the United States

The goal in this study is to test whether 2005 Energy Policy Act (EPA 2005) introduces a statistically significant structural change in the farm land allocation dynamics among the top five principle crops in the United States. The five crops are: corn, wheat, soy beans, hay, and cotton. The first objective is to estimate the acreage response to the own and other crops’ relative price changes before and after the policy. The second objective is to evaluate the magnitudes of the differences in the before and after EPA 2005. The paper also plots the state-wide data on acreage changes before and after 2005