IDEAS home Printed from https://ideas.repec.org/p/ags/saea12/119772.html
   My bibliography  Save this paper

Analysis of Commodity Program Adjustments for U.S. Rice in Stochastic Framework

Author

Listed:
  • Chavez, Eddie C.
  • Wailes, Eric J.

Abstract

Potential adjustments in U.S. commodity program for rice are evaluated in this paper using stochastic analysis in a global modeling framework. Corresponding threshold and loss-compensatory increases in target price and loan rates are determined with assumed outright and gradual elimination of direct payments. Results show that if direct payments (DP) are eliminated in 2012, a 23% increase in both the target price (TP) and loan rate (LR) triggers counter-cyclical payments (CCP) 80% of the time; and it will take an increase of 48% in TP and LR to generate CCP enough to compensate for the loss in total DP. If DP is gradually removed over 5 years, the trigger and compensatory increases in TP and LR are 41% and 46%, respectively. Furthermore, if DP is eliminated outright and TP maintained, an increase of 71% in LR triggers loan deficiency payments (LDP) 75% of the time; and it will take an increase of 130% in LR to generate enough LDP to recoup the total loss in DP. Under gradual removal of DP, the trigger and compensatory increases in LR are 71% and 92%, respectively.

Suggested Citation

  • Chavez, Eddie C. & Wailes, Eric J., 2012. "Analysis of Commodity Program Adjustments for U.S. Rice in Stochastic Framework," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119772, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea12:119772
    DOI: 10.22004/ag.econ.119772
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/119772/files/Final%20Paper_SAEA%202012_Commodity%20Prog%20Adj%20for%20US%20Rice%20in%20Stochastic%20Framework%20_chavez%20and%20wailes.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.119772?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Agricultural and Food Policy; Crop Production/Industries;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:saea12:119772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/saeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.