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Regional Acreage Response For U.S. Corn And Wheat: The Effects Of Government Programs

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  • Chembezi, Duncan M.
  • Womack, Abner W.
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    Abstract

    This paper presents findings from an analytical scheme that offers a promising alternative to traditional procedures of modeling acreage response. The scheme addresses the two-step decision process in which program and nonprogram planting decisions are modeled separately, conditional on the decision to participate. This provides a more realistic and intuitive portrayal of producersÂ’ decision making process. The model is applied at the regional level to assess the impact of farm programs on acreage response for corn in the Cornbelt and Lake States, and for wheat in the Northern Plains. The impacts of policy variable changes on participation and planted acreage are also analyzed.

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    File URL: http://purl.umn.edu/30356
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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): 01 (July)
    Pages:

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    Handle: RePEc:ags:sojoae:30356

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    Keywords: Agricultural and Food Policy;

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    1. Gordon C. Rausser & Richard E. Just, 1981. "Principles of policy modeling in agriculture," Proceedings – Rural and Agricultural Conferences, Federal Reserve Bank of Kansas City, pages 139-178.
    2. Chavas, Jean-Paul & Pope, Rulon D. & Kao, Robert S., 1983. "An Analysis Of The Role Of Futures Prices, Cash Prices And Government Programs In Acreage Response," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 8(01), July.
    3. Seale, James L., Jr. & Shonkwiler, John Scott, 1987. "Rationality, Price Risk, And Response," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
    4. Houck, James P. & Ryan, Mary E., 1972. "Supply Analysis For Corn In The United States: The Impact Of Changing Government Programs," Staff Papers 13554, University of Minnesota, Department of Applied Economics.
    5. Shideed, Kamil H. & White, Fred C., 1989. "Alternative Forms Of Price Expectations In Supply Analysis For U.S. Corn And Soybean Acreages," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(02), December.
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