Supply Response under Risk: Implications for Counter-Cyclical Payments' Production Impact
AbstractThis study investigates the role of risk in farmers' acreage decisions for major field crops in the North Central region by revisiting an earlier study by Chavas and Holt. The empirical model is forward-looking and reflects better variable measurement. We test the effects of wealth and revenue risk on supply response. Estimated results are also used to examine the production impact of counter-cyclical payments (CCPs). We find that the effects of risk on supply response are not strong. An increase in initial wealth would lead to greater crop acreage, consistent with decreasing absolute risk aversion. The effect of CCPs on production appears to be negligible. Copyright 2007, Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.
Volume (Year): 29 (2007)
Issue (Month): 1 ()
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: (414) 918-3190
Fax: 01865 267 985
Web page: http://www.aaea.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Femenia, Fabienne & Gohin, Alexandre & Carpentier, Alain, 2008.
"The decoupling of farm programs: Revisiting the wealth effect,"
108th Seminar, February 8-9, 2008, Warsaw, Poland
48107, European Association of Agricultural Economists.
- Fabienne Femenia & Alexandre Gohin & Alain Carpentier, 2010. "The Decoupling of Farm Programs: Revisiting the Wealth Effect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(3), pages 836-848.
- Catherine Hausman, 2012. "Biofuels and Land Use Change: Sugarcane and Soybean Acreage Response in Brazil," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(2), pages 163-187, February.
- Burdine, Kenneth H. & Maynard, Leigh J., 2012. "Risk Reduction of LGM-Dairy and its Potential Impact on Production," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124180, Agricultural and Applied Economics Association.
- Lin, William W. & Lucier, Gary, 2008. "Effects of Marketing Loans on U.S. Dry Peas and Lentils: Supply Response and World Trade," Economic Research Report 56454, United States Department of Agriculture, Economic Research Service.
- Boussios, David & Barkley, Andrew P., 2012. "Kansas Grain Supply Response to Economic and Biophysical Factors, 1977-2007," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124385, Agricultural and Applied Economics Association.
- Lee, Young-Jae & Kennedy, P. Lynn, 2013. "The Role Of Uncertainty In The Agricultural Output Market In Acreage Allocation Decisions," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142130, Southern Agricultural Economics Association.
- Liang, Yan & Miller, J. Corey & Harri, Ardian & Coble, Keith H., 2011. "Crop Supply Response under Risk: Impacts of Emerging Issues on Southeastern U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(02), May.
- Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "Inter-and intra-annual global crop acreage response to prices and price risk," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149695, Agricultural and Applied Economics Association.
- Bakhshi, Samira & Kerr, William A., 2009. "Is There Supply Distortion In The Green Box? An Acreage Response Approach," Working Papers 51093, Canadian Agricultural Trade Policy Research Network.
- Smith, Rachel K. & Duffy, Patricia A. & Novak, James L. & Wilson, Norbert L.W., 2009. "Supply Response of Crops in the Southeast," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46756, Southern Agricultural Economics Association.
- Haile, Mekbib G. & Kalkuhl, Matthias & von Braun, Joachim, 2013. "Short-term global crop acreage response to international food prices and implications of volatility," Discussion Papers 145308, University of Bonn, Center for Development Research (ZEF).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.