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Estimating The Value Of The 0/92 Reduced Planting Alternatives Of The 1985 Farm Bill For Farm Program Paticipants

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  • Thompson, Troy N.
  • Knight, Thomas O.
  • Boren, Billy D.
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    Abstract

    The 50/92 and 0/92 reduced planting alternatives of the 1985 farm bill allow farm program participants more flexibility in making production decisions. Specifically, these provisions relax the incentive to produce inherent in earlier commodity programs that linked deficiency payments directly to harvested acreage. This study examined the value of this additional decision flexibility for crop producers in the Blacklands of Central Texas. The results suggest that the reduced planting alternatives would not be used by, and have no value for risk neutral producers, but have substantial value for risk averse producers who would reduce planted acreage in years when yield expectations are low.

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    File URL: http://purl.umn.edu/30010
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    Bibliographic Info

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

    Volume (Year): 22 (1990)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:sojoae:30010

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    Web page: http://www.saea.org/jaae/jaae.htm
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    Keywords: Agricultural and Food Policy;

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    1. Derek R. Byerlee & Jock R. Anderson, 1969. "Value Of Predictors Of Uncontrolled Factors In Response Functions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 13(2), pages 118-127, December.
    2. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
    3. Love, Ross O. & Robison, Lindon J., 1984. "An Empirical Analysis Of The Intertemporal Stability Of Risk Preference," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(01), July.
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