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Adoption Of Double-Cropping Soybeans And Wheat

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Author Info

  • Shapiro, Barry Ira
  • Brorsen, B. Wade
  • Doster, D. Howard

Abstract

Double-cropping of soybeans and wheat is often promoted by extension personnel. This paper seeks to explain how the decision to adopt double-cropping is made, using a Tobit regression model. Tobit makes use of more of the information in the data set than do logit or probit and explains not only the decision to double-crop but also the rate of adoption. The paper considers factors such as profit and risk perceptions and risk which have not been included in the past models used to explain adoption of technology. The results show that risk perception is important. Contrary to the findings of some other adoption studies, this decision is not influenced by human capital factors. The farmers who double-crop are more highly leveraged and appear to do so both to achieve higher income and as part of a risk diversification strategy. This is consistent with the importance of the location factor, measured as the average number of growing degree days at the farm's location. Growing degree days is a proxy for the actual distribution of returns from double-cropping and is the main factor explaining this decision. Extensive adoption of double-cropping in cooler regions of the Midwest must await technological advances that can increase the profitability of double-cropping by reducing the growing season for wheat and/or beans.

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File URL: http://purl.umn.edu/29630
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Bibliographic Info

Article provided by Southern Agricultural Economics Association in its journal Southern Journal of Agricultural Economics.

Volume (Year): 24 (1992)
Issue (Month): 02 (December)
Pages:

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Handle: RePEc:ags:sojoae:29630

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Web page: http://www.saea.org/jaae/jaae.htm
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Related research

Keywords: Crop Production/Industries;

References

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  1. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
  2. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
  3. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  4. Marra, Michele C. & Carlson, Gerald A., 1987. "The Role Of Farm Size And Resource Constraints In The Choice Between Risky Technologies," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(02), December.
  5. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
  6. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
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Citations

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Cited by:
  1. Duke, Jason C. & Epplin, Francis M. & Vitale, Jeffrey D. & Peeper, Thomas F., 2009. "Canola-Wheat Rotation versus Continuous Wheat for the Southern Plains," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46620, Southern Agricultural Economics Association.
  2. Duke, Jason C. & Epplin, Francis M. & Vitale, Jeffrey D. & Peel, Derrell S., 2011. "Forage plus Grain Wheat versus Grain-Only Wheat," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers.
  3. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
  4. Rico García-Amado, Luis & Ruiz Pérez, Manuel & Dahringer, Guillaume & Reyes Escutia, Felipe & Barrasa García, Sara & Contreras Mejía, Elsa, 2013. "From wild harvesting to agroforest cultivation: A Chamaedorea palm case study from Chiapas, Mexico," Forest Policy and Economics, Elsevier, vol. 28(C), pages 44-51.
  5. Bacic, Ivan Luiz Zilli & Bregt, Arnold K. & Rossiter, David G., 2006. "A participatory approach for integrating risk assessment into rural decision-making: A case study in Santa Catarina, Brazil," Agricultural Systems, Elsevier, vol. 87(2), pages 229-244, February.
  6. Vergara, Oscar & Coble, Keith H. & Hudson, Darren & Knight, Thomas O. & Patrick, George F. & Baquet, Alan E., 2005. "Target Markets for Grain and Cotton Marketing Consultants and Market Information Systems," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
  7. Maart, Syster Christin & Musshoff, Oliver & Ewald, Jorn, 2012. "Ermittlung Der Individuellen Risikoeinstellung: Vergleich Verschiedener Methoden Und Personengruppen," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137384, German Association of Agricultural Economists (GEWISOLA).
  8. Pannell, David J., 1999. "Uncertainty and Adoption of Sustainable Farming Systems," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 124511, Australian Agricultural and Resource Economics Society.
  9. Ahouissoussi, Nicolas B.C. & McIntosh, Christopher S. & Wetzstein, Michael E., 1995. "Rational Expectations Estimation Of Georgia Soybean Acreage Response," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(02), December.
  10. Yigezu A. Yigezu & John H. Sanders, 2008. "Introducing New Technologies And Marketing Strategies For Households With Malnutrition: An Ethiopian Case Study," Working Papers 08-05, Purdue University, College of Agriculture, Department of Agricultural Economics.
  11. Dhakal, Bhubaneswor & Bigsby, Hugh R. & Cullen, Ross, 2008. "Determinants of Forestry Investment and Extent of Forestry Expansion by Smallholders in New Zealand," Review of Applied Economics, Review of Applied Economics, vol. 4(1-2).

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