A Reexamination of the U.S. Export Demand for Soybeans and Soybean Products

Abstract

This paper addresses the question of whether the export demand for soybeans and soybean products changed structurally over the 1950 to 1992 period as the U.S. agricultural sector became more integrated with the rest of the world economy. The results suggest that export demands were stable for soybeans, soybean meal and soybean oil over the sample period. Moreover, it is possible to infer conclusively that the long-run soybean and soybean product export price elasticities were in the elastic range. The implications include that for each one percent reduction in the price of soybeans, soybean meal and/or soybean oil brought about through a government program, exports increased by more than one percent, leading to a reduction in the variability of soybean and soybean product priced and sales and an increase in the net farm income of soybean producers.