Spatial Equilibrium Effects of Agricultural Commodity Price Changes on Great Plains Agriculture, 1997Ð2017

The effects of changes in agricultural commodity prices on net farm income, land values, and the number of farm operators are quantified using a spatial equilibrium model for 798 Great Plains counties during 1997Ð2017, a period of historically large price changes. The empirical model identifies major features of the agricultural sector, including distance to market and agricultural commodity price movements. Regression results show that crop prices had significant impacts on agricultural outcomes. Volatility in net farm income and land values was greater in locations farthest from market centers for corn and soybeans, but closer to the defined sorghum market center.