Discuss the likely effects the drought will have on the corn and soybean markets

In June of 2017, north-central South Dakota saw a damaging frost on their corn. Around 75% of the winter wheat in the drought-stricken areas of South Dakota has been baled or sprayed out. Similarly, in the year 2012 the vast majority of corn and soybeans producing regions in the United States experienced severe drought during the growing season. Some of the effects of the drought on corn and soybean production are detailed in the cover page summary of a US Department of Agriculture Crop Production Report published August 10, 2012 (see below). In addition, a video of an interview with an agricultural economist, Dr. Bruce Babcock, discusses some issues that are a consequence of the drought (see: http://www.cc.com/video-clips/x2crx4/the-colbert-report-u-s–agriculture— drought-disaster—bruce-babcock ). 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 drought will have on the corn and soybean markets. Specifically, based on your knowledge of supply and demand models, discuss the effects the drought will have on corn and soybean equilibrium quantities and prices. 2. There are proposals to temporarily remove the mandatory use of ethanol in gasoline (Renewable Fuels Standard). The video discusses some of the issues also. Based on your knowledge of supply and demand models, explain how temporary removal of the mandatory use of ethanol in gasoline would affect the corn market, given the US Department of Agriculture production forecast? Explain how other related markets might also be 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 Times News Roman font single spaced. Please include your name, instructor’s name (Anika Islam), course and section number 3 (i.e. EconS 101.03), 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: are the criteria your essay will be judged against: