Abstract
Changes in crop production activities resulting from farm programs and policies alter the demand for inputs. This article discusses a statistical method by which regional input responses may be analyzed before aggregate impacts on farm production and income are forecast. Researchers and decision makers may anticipate projected changes in input markets based on the observed regional deviations of input use levels from national average quantities as explained by crop location and distribution effects. An example of pesticide use changes after implementing a conservation reserve program illustrates the value of incorporating regional variation factors into the analysis of impacts on agricultural input industries.
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