Abstract
Objective: To analyze the effects of a greater geographic dispersion of municipalities that produce and consume certified corn seed in the State of Mexico.Design/Methodology/Approach: A solution for the spatial equilibrium model applied to the certified seed market in the State of Mexico was reached in 2019.Results: The results indicate that a greater geographical dispersion of producing and consuming municipalities would reduce production costs by 0.8% and increase income, distribution costs, and profits by 0.1, 3.0, and 1.3%, respectively, as compared to the data observed in the studied year.Study Limitations/Implications: The positive effects observed in this study suggest that a greater geographical dispersion would benefit regions whose municipalities have a high potential to produce certified seed.Conclusions: In addition to having a moderate effect on profits, the greater geographic dispersion would benefit corn producers, who would have a greater access to certified seed. As a result, both the seed use rate in the region and the yield level per hectare would increase.
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