Econometrica: Jul, 1964, Volume 32, Issue 3
Regional Programming of Efficient Agricultural Production Patterns
Alvin C. Egbert, Earl O. Heady
This is a study in interregional competition and the optimum spatial allocation of crop production in the United States. Efficient production patterns are specified by a linear programming model restrained by regional land resources and national demands. The models used are based on 122 producing regions and include as many as 500 restraints, including upper bounds on each crop category within regions. Production patterns are indicated to allow minimum national food costs and alternatives in livestock feed substitution. Three models are used and a set of national supply prices for crops is derived for each. The results have policy implications, in indicating the location and amount of land which should be withdrawn from production if the nation is to arrive at a long-run solution to its mammoth surplus problem and to lessen the treasury costs of farm subsidies.