Profit‐Maximizing Land‐Use Revisited: The Testable Implications of Non‐joint Crop Production Under Land Constraint

This article derives new implications for the land allocation and production decisions of profit‐maximizing farm‐firms where production of different crops is non‐joint but subject to a constraint on the total land area. These implications are observable and thus subject to empirical scrutiny. An estimable model of crop production, land allocation, and input‐use decisions is derived that permits joint production and enables the implications of non‐joint but land‐constrained production to be tested. This may improve econometric estimates of cross‐price elasticities of supply by linking models of land use and production decisions, and allowing non‐jointness to be imposed where appropriate.