IDEAS home Printed from https://ideas.repec.org/p/ags/waeafa/35717.html
   My bibliography  Save this paper

The Importance Of Using Farm Level Risk Estimates In Crp Enrollment Decisions

Author

Listed:
  • Bechtel, Amos I.
  • Young, Douglas L.

Abstract

Easily accessible county data produced frontiers which substantially underestimated the reduction in risk by enrolling in the CRP. Furthermore, the county yield data portrayed an unattainable level of utility for a moderately risk averse farmer. Farm level data predicted CRP enrollment similar to actual enrollment in the study region.

Suggested Citation

  • Bechtel, Amos I. & Young, Douglas L., 1999. "The Importance Of Using Farm Level Risk Estimates In Crp Enrollment Decisions," 1999 Annual Meeting, July 11-14, 1999, Fargo, ND 35717, Western Agricultural Economics Association.
    • Handle: RePEc:ags:waeafa:35717
    DOI: 10.22004/ag.econ.35717
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/35717/files/sp99be01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.35717?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
    ---><---

    References listed on IDEAS

    as
    1. Rawlins, Richard B. & Bernardo, Daniel J., 1991. "Incorporating Uncertainty in the Analysis of Optimal Beef-Forage Production Systems," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(1), pages 213-225, July.
    2. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty: Reply," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 664-665.
    3. Bryan Schurle & Bernard L. Erven, 1979. "Sensitivity of Efficient Frontiers Developed for Farm Enterprise Choice Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 506-511.
    4. Walker, Melvin E. & Lin, Kuang-hsing T., 1978. "Price, Yield, and Gross Revenue Variability for Selected Georgia Crops," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 10(1), pages 71-75, July.
    5. Calum G. Turvey & H. C. Driver & Timothy G. Baker, 1988. "Systematic and Nonsystematic Risk in Farm Portfolio Selection," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(4), pages 831-836.
    6. L. M. Eisgruber & L. S. Schuman, 1963. "The Usefulness of Aggregated Data in the Analysis of Farm Income Variability and Resource Allocation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 45(3), pages 587-591.
    7. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    8. Lars Brink & Bruce McCarl, 1978. "The Tradeoff between Expected Return and Risk Among Cornbelt Farmers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 259-263.
    9. Rawlins, Richard B. & Bernardo, Daniel J., 1991. "Incorporating Uncertainty In The Analysis Of Optimal Beef-Forage Production Systems," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(1), pages 1-13, July.
    10. Walker, Melvin E., Jr. & Lin, Kuang-Hsing Terence, 1978. "Price, Yield, And Gross Revenue Variability For Selected Georgia Crops," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(1), pages 1-5, July.
    11. Debrah, Siegfried & Hall, Harry H., 1989. "Data aggregation and farm risk analysis," Agricultural Systems, Elsevier, vol. 31(3), pages 239-245.
    12. Mapp, Harry P. & Hardin, Michael L. & Walker, Odell L. & Persaud, Tillak, 1979. "Analysis Of Risk Management Strategies For Agricultural Producers," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Harry P. Mapp & Michael L. Hardin & Odell L. Walker & Tillak Persaud, 1979. "Analysis of Risk Management Strategies for Agricultural Producers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 1071-1077.
    14. Tesfaye Gebremeskel & C. Richard Shumway, 1979. "Farm Planning and Calf Marketing Strategies for Risk Management: An Application of Linear Programming and Statistical Decision Theory," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(2), pages 363-370.
    15. K. J. Thomson & P. B. R. Hazell, 1972. "Reliability of Using the Mean Absolute Deviation to Derive Efficient E,V Farm Plans," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 54(3), pages 503-506.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Popp, Michael P. & Rudstrom, Margaretha & Manning, Patrick M., 2004. "Spatial Yield Risk Issues: Comparing Yield Risk Across Region, Crop And Aggregation Method," 2004 Annual meeting, August 1-4, Denver, CO 19979, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Finger, Robert, 2012. "Biases in Farm-Level Yield Risk Analysis due to Data Aggregation," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 61(1).
    3. Margot Rudstrom & Michael Popp & Patrick Manning & Edward Gbur, 2002. "Data Aggregation Issues for Crop Yield Risk Analysis," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 50(2), pages 185-200, July.
    4. Finger, Robert, 2012. "Biases in Farm-Level Yield Risk Analysis due to Data Aggregation," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 61(01), pages 1-14, February.
    5. Leif Erec Heimfarth & Oliver Musshoff, 2011. "Weather index‐based insurances for farmers in the North China Plain," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(2), pages 218-239, August.
    6. Michael Popp & Margot Rudstrom & Patrick Manning, 2005. "Spatial Yield Risk Across Region, Crop and Aggregation Method," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2‐3), pages 103-115, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van Zyl, J. & Groenewald, J. A., 1986. "A Comparison Of Certain Decision-Making Techniques Under Risk - An Empirical Investigation Of Maize Cultivar Selection," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 25(1), February.
    2. Osaki, Mauro & Batalha, Mário Otavio, 2014. "Optimization model of agricultural production system in grain farms under risk, in Sorriso, Brazil," Agricultural Systems, Elsevier, vol. 127(C), pages 178-188.
    3. Teague, Paul W. & Lee, John G., 1988. "Risk Efficient Perennial Crop Selection: A Motad Approach To Citrus Production," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 20(2), pages 1-8, December.
    4. Hatch, L. Upton & Atwood, Joseph A. & Segar, James, 1989. "An Application Of Safety-First Probability Limits In A Discrete Stochastic Farm Management Programming Model," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-8, July.
    5. Ford, Beth Pride & Musser, Wesley N., 1995. "A Comparison Of Nominal And Real Historical Risk Measures," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(2), pages 1-17, December.
    6. Adams, Richard M. & Menkhaus, Dale J. & Woolery, Bruce A., 1980. "Alternative Parameter Specification In E, V Analysis: Implications For Farm Level Decision Making," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(1), pages 1-8, July.
    7. Hisham S. El-Osta, 2018. "Strategies to Manage Risk and their Role in Impacting Economic Performance among Farm Households," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 49-64, March.
    8. Mumey, G.A. & Bauer, L. & Boyda, A., 1988. "An Estimate of Risk and Returns From Cropping Alternatives," Project Report Series 232065, University of Alberta, Department of Resource Economics and Environmental Sociology.
    9. Boisvert, Richard N., 1985. "The Role Of Alternative Risk Programming Models In Empirical Research," Regional Research Projects > 1985: S-180 Annual Meeting, March 24-27, 1985, Charleston, South Carolina 271793, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    10. Young, Douglas & Lin, William & Pope, Rulon & Robison, Lindon & Selley, Roger, 1979. "Risk Preferences Of Agricultual Producers:Their Measurement And Use," Risk Management in Agriculture: Behavioral, Managerial, and Policy Issues, January 25-26, 1979, San Francisco, California 271459, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    11. Hammida, Mustapha & Eidman, Vernon R., 1991. "Livestock And Poultry Production Risk In The United States," Staff Papers 14016, University of Minnesota, Department of Applied Economics.
    12. Louhichi, Kamel & Flichman, Guillermo & Blanco Fonseca, Maria, 2009. "A generic template for FSSIM," Reports 57463, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    13. Shurley, W. Donald & Patrick, George F., 1981. "Farm Planning, Risk Aversion, And The Returns To On-Farm Storage Facilities," 1981 Annual Meeting, July 26-29, Clemson, South Carolina 279457, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Anderson, Jock R., 1975. "Programming For Efficient Planning Against Non-Normal Risk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 1-14, August.
    15. Walker, Odell L. & Nelson, A. Gene, 1980. "Dealing With Risks In The Management Agricultural Firms: An Extension/Teaching Viewpoint," Risk Analysis in Agriculture: Research and Educational Developments, January 16-18, 1980, Tucson, Arizona 271561, Regional Research Projects > W-149: An Economic Evaluation of Managing Market Risks in Agriculture.
    16. Helmers, Glenn A. & Atwood, Joseph & Langemeier, Michael R. & Johnson, Bruce B., 1985. "Sub-Optimal Analysis of Organic Farming in a Multiobjective Setting," 1985 Annual Meeting, August 4-7, Ames, Iowa 278522, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Petrick, Martin & Ditges, C. Markus, 2000. "Risk In Agriculture As Impediment To Rural Lending - The Case Of North-Western Kazakhstan," IAMO Discussion Papers 14939, Institute of Agricultural Development in Transition Economies (IAMO).
    18. Vieth, Gary R. & Suppapanya, Pramote, 1996. "An Evaluation Of Selected Decision Models: A Case Of Crop Choice In Northern Thailand," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 28(2), pages 1-11, December.
    19. Cong, Rong-Gang & Hedlund, Katarina & Andersson, Hans & Brady, Mark, 2014. "Managing soil natural capital: An effective strategy for mitigating future agricultural risks," MPRA Paper 112155, University Library of Munich, Germany.
    20. Mapp, Harry P. & Hardin, Michael L. & Walker, Odell L. & Persaud, Tillak, 1979. "Analysis Of Risk Management Strategies For Agricultural Producers," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278205, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    More about this item

    Keywords

    Farm Management; Risk and Uncertainty;

    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:waeafa:35717. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/waeaaea.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.