at harvest time to livestock and poultry producers. Previously, field corn 

 was produced largely for consumption on the farm. Corn has recently become a 

 valuable cash crop in Northwest Florida. Cash receipts were $5.9 million in 

 1978 or $3.0 million in real dollars (1967 = 100), an increase of about 115% 

 from 1960 to 1978. According to the Florida Crop and Livestock Reporting 

 Service, Field and Crop Summary (1978), Northwest Florida produced about 98.6 

 million bu of field corn in 1978, about 14.6% of the State's production. Corn 

 production among counties in order of volume are Santa Rosa, Escambia, Oka- 

 loosa, Walton, and Bay. Northwest Florida farmers increased production by 

 138% in 1960-78 yet the total land planted increased only 16%. Increased pro- 

 ductivity was caused largely by better fertilizer practices, irrigation, new 

 earlier maturing hybirds, and the use of insecticides. 



The real cost of producing an acre of corn in Northwest Florida declined 

 2.8% in 1975-78. Although real costs for equipment, insecticides, and herbi- 

 cides rose sharply (up to 176%), the real cost of seeds and fertilizers 

 declined. Considering that the real price of corn has not fallen and real 

 costs have, farmers now are better off than before. This advantage is even 

 further amplified considering that the cost of producing an acre of corn has 

 fallen, but the yield per acre has risen. The average yield per acre in 

 Northwest Florida was 2,000 lb whereas the State average was 1,577 lb. 



The real price of corn remained fairly stable from 1954 to 1978 because 

 the demand for corn was partly derived from the demand of other products that 

 use corn as part of the input. Field corn is largely used as livestock and 

 poultry feed. The demand for corn is not only a function of its price but 

 also the price of other feeds, and the demand for beef, poultry, and pork. 

 Like most other feed grains and agricultural products, the demand for corn is 

 inelastic with respect to price. If the price of corn falls by 1% the demand 

 for corn will increase by less than 1%. The real price of corn has remained 

 stable indicating that demand and supply are growing at about the same rate. 

 The increase in demand for corn is attributed to a rise in consumer income 

 (inducing consumers to purchase more beef) and a rise in population. This 

 stable price indicates an abundance of corn according to the assumptions of 

 the Barnett-Morse scarcity hypothesis. 



Cattle and Calves 



In cash value, the cattle industry in Florida in 1978 ranked second to 

 oranges and fifth among the counties of Northwest Florida ($5.7 million in 

 1978, or 2.9 million in real dollars; 1967 = 100). The 1978 regional count 

 was 17,805 beef cattle, about 1.5% of the State total. This count is conser- 

 vative because Bay and Gulf County figures were excluded to avoid disclosure 

 of individual forms. Northwest Florida probably produces about 1.75% of the 

 State's beef cattle. Okaloosa County currently is the major producer of beef 

 cattle. Annual production increased slightly in 1954-78, but began to decline 

 recently because land values were rising. 



The real value of cattle and calves received by farmers rose in 1954-79 

 from $6.00 a lb in 1955 to $10 a lb in 1978, which suggests a scarcity of 

 supply. The total revenue has increased because the percentage change in 

 demand is less than the percentage change in price. Real prices at the retail 

 level increased less than 1% annually in 1954-78. This rise in prices was 

 caused by a demand that grew faster than supply. The growth in demand 



121 



