Abstract

ROMERO PADILLA, Arely; HERNANDEZ JUAREZ, Martín; LEON MERINO, Aurelio  and  SANGERMAN-JARQUIN, Dora Ma.. Impact on the Mexican corn market in absence of biofuel production policies in the United States of America. Rev. Mex. Cienc. Agríc [online]. 2015, vol.6, n.5, pp.1023-1033. ISSN 2007-0934.

With global energy crisis, companies and government of the United States have been concerned about the search for alternative energy sources. From 2000 has been manifesting an accelerated growth of biofuels production from corn. This has a direct impact on export volumes, to countries with shortage, like Mexico. This article discusses the impact that would have in the Mexican corn market if biofuel production policies in the United States were eliminated. A regression model is used to estimate the price elasticity of supply and demand of corn in two scenarios, based on oil price. By using projected data (FAPRI, 2012), the model results show that during the period 2011-2022, the reduction in the price of corn in the United States, caused by the removal oftheir biofuel production policies affects significantly the Mexican corn market, and the impact is greater on a stage with low oil price (US $50 per barrel). Because the legislation of biofuel production in the US has had and has influence on the price of corn that Mexico imports from the United States, it is important to address public policy actions to increase the productivity of small and medium corn producers to strengthen domestic production and achieve greater self-supply and a reduction of imports from this cereal.

Keywords : agricultural policies; agricultural prices; biofuels; corn market.

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