Price impacts on the wheat land use in wheat-sheep zone

Nan Wang, Richard Culas, Sosheel Godfrey, Krishna Timsina

Research output: Other contribution to conferenceAbstractpeer-review


As the primary producers of agricultural products, farmers’ decisions affect grain output, sown area, and land use. This paper uses the Nerlove Model to estimate the supply response of wheat in the wheat-sheep zone for the period 2000-2020 and discusses the response degree of the wheat area to the price and other factors. The results indicated that the current sown area of wheat is greatly affected by the previous sown area, which may be because the sown area of wheat is not easy to adjust in the short term due to resource conditions, production habits and fixed input in the early stage. In addition, the price of wheat in the previous period also had a positive impact on the sown area, but the impact was not significant, and the short-term price elasticity was small; the long-term price elasticity was more significant than the short-term, which implies, when the market price of wheat fluctuates, farmers usually cannot adjust the sown area of wheat in a short period according to the market price signal to adapt to the changes in market supply and demand.


ConferenceAustralasian Agricultural and Resource Economics Annual Conference 2023
Abbreviated titleRevitalising the food system
Country/TerritoryNew Zealand
OtherThe 2023 annual conference is being organised by the New Zealand Branch. We are returning to the usual in-person interactive format, but there will be opportunities to join the conference online for those not able to travel. We expect participants to join us from throughout the world at the fantastic new University of Canterbury Students Union building. Our focus will be on providing the best interactive experience possible, with opportunities to mingle and interact with other participants both in person and online.
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