The writing essay before watching the video

EconS 101.04 Writing Assignment #1 Fall 2014 Due via NetTutor by Tuesday, September 23, 2014 11:00 pm

The vast majority of corn and soybeans produced in the United States is grown in the Midwestern states including: Nebraska, Iowa, Illinois, Indiana, and Ohio. In 2012, this region experienced severe drought during the growing season. Some of the issues and consequences associated with the drought are discussed in a video of an interview with agricultural economist, Dr. Bruce Babcock (see: http://www.colbertnation.com/the-colbert-report-videos/416886/july-24-2012/u-s--agriculture--- drought-disaster---bruce-babcock). This year (2014), crop production conditions are much more favorable. Corn production is expected to be the highest on record, and this follows record production the year before as well. Soybean production is expected to increase from last year as well (see:� US Department of Agriculture Crop Production Report published September 11, 2014 http://usda.mannlib.cornell.edu/usda/current/CropProd/CropProd-09-11-2014.pdf).

1. Based on information contained in the US Department of Agriculture Crop Production Report and the interview of Dr. Bruce Babcock, discuss the likely effects the improved growing conditions will have on the corn and soybean markets. Specifically, based on your knowledge of supply and demand models, discuss the effects improved growing conditions will have on corn and soybean equilibrium quantities and prices.

2. In 2012, there were proposals to temporarily remove the mandatory use of ethanol in gasoline (Renewable Fuels Standard). The video discusses some of the issues (http://www.colbertnation.com/the-colbert-report- videos/416886/july-24-2012/u-s--agriculture---drought-disaster---bruce-babcock). Based on your knowledge of supply and demand models and the import role expectations of future events play in determining current supply and demand, explain how speculation about removal of the mandatory use of ethanol in gasoline might have affected the corn market. Explain how the ethanol market might have been impacted.

Hint: It may be useful to graph these scenarios before writing your answer. Please do not include your graph in your submission, but describe the results in your written analysis. Imagine you are preparing your analysis for a local news report where the audience is not likely to be familiar with supply and demand analysis (models).

Grading Rubric Your report must not exceed one typed page with one-inch margins and 12-point font. Please include your name, instructor’s name (Dr. Love), course and section number 4 (i.e. EconS 101.04), and writing assignment (assignment 1) on the top of your assignment. Your essay will be assessed as either “Meets Expectations” or “Needs Improvement.” If your essay needs improvement, you will be given feedback from NetTutor to help you revise it. You can then re-submit the essay to NetTutor for another try, but you only get one second chance. If you take materials or quotes from sources, you must provide citations/references in a standard citation/reference format. Here are the criteria your essay will be judged against:

Criterion Needs Improvement Meets Expectations Writing The writing is difficult to follow

and/or poorly organized. Transition sentences are absent or ineffective. Typos and/or grammatical errors distract the reader. Source material citations/references needed, but are missing or incorrect .

Ideas are well-organized. Transition sentences effectively connect one idea to the next. The essay is free of typos and grammatical errors. Sources properly cited and referenced.

Application of economic analysis

Identification of the effects of improved growing conditions and speculation about proposed ethanol policy change on supply and/or demand are incorrect or unclear. Discussions of price and or quantity effects are incorrect or unclear. The analysis of expectations about possible biofuel policy change is incorrect or unclear.

Identifications of supply effects are correct and clearly indicated. Discussions of likely price effects are correct and clearly indicated. Discussion and explanation of the biofuels policy proposed change demonstrates coherent economic thought.