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The Role Of Farm Size And Resource Constraints In The Choice Between Risky Technologies

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  • Marra, Michele C.
  • Carlson, Gerald A.

Abstract

This paper investigates the relationship between farm size and technology adoption by applying a model recently developed by Just and Zilberman to the choices of a sample of southwestern soybean farmers. The adoption of double cropping soybeans with wheat is evaluated with an expanded model which includes availability of specialized equipment and human capital. It is found that the empirical farm size-technology adoption relationship is consistent with risk aversion and a high covariance of returns between the old and new technologies. Accounting for human and physical capital differences across farms improves the power of the hypothesis tests.

Suggested Citation

  • Marra, Michele C. & Carlson, Gerald A., 1987. "The Role Of Farm Size And Resource Constraints In The Choice Between Risky Technologies," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(2), pages 1-10, December.
    • Handle: RePEc:ags:wjagec:32233
    DOI: 10.22004/ag.econ.32233
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    References listed on IDEAS

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    1. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    2. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-328, July.
    3. Just, Richard E. & Zilberman, David, 1984. "The Role of Micro-Risk Behavior in Aggregate Relationships," Regional Research Projects >1984: S-180 Annual Meeting, March 25-28, 1984, New Orleans, Louisiana 307227, Regional Research Projects > S-180: An Economic Analysis of Risk Management Strategies for Agricultural Production Firms.
    4. Michael R. Rahm & Wallace E. Huffman, 1984. "The Adoption of Reduced Tillage: The Role of Human Capital and Other Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(4), pages 405-413.
    5. Abdulla B. Danok & Bruce A. McCarl & T. Kelley White, 1980. "Machinery Selection Modeling: Incorporation of Weather Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 700-708.
    6. repec:cor:louvrp:-80 is not listed on IDEAS
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    Cited by:

    1. Banerjee, Swagata (Ban) & Martin, Steven W. & Roberts, Roland K. & Larson, James A. & Hogan, Robert J., Jr. & Johnson, Jason L. & Paxton, Kenneth W. & Reeves, Jeanne M., 2007. "Adoption of Conservation-Tillage Practices in Cotton Production," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34842, Southern Agricultural Economics Association.
    2. Shapiro, B.I. & Brorsen, B.Wade & Doster, D. Howard, 1992. "Adoption of Double-Cropping Soybeans and Wheat," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(2), pages 33-40, December.
    3. Yang, He, 2014. "The impact of intensive farming on land tenure: Evidence from Confucius' manors (1759–1901)," China Economic Review, Elsevier, vol. 30(C), pages 279-289.
    4. Korir, Josphat Kiplang’at & Ritho, Cecilia & Irungu, Patrick & Affognon, Hippolyte, 2016. "Factors Influencing Intensity Of Adoption Of Integrated Pest Management Package And Pesticide Misuse In The Control Of Mango Fruit Fly In Embu East Sub-County, Kenya," Dissertations and Theses 271765, University of Nairobi, Department of Agricultural Economics.
    5. Ufer, Danielle J. & Ortega, David L. & Wolf, Christopher A. & McKendree, Melissa & Swanson, Janice, 2022. "Getting past the gatekeeper: Key motivations of dairy farmer intent to adopt animal health and welfare-improving biotechnology," Food Policy, Elsevier, vol. 112(C).
    6. Marra, Michele C. & Hubbell, Bryan J. & Carlson, Gerald A., 2001. "Information Quality, Technology Depreciation, And Bt Cotton Adoption In The Southeast," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.
    7. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
    8. Cynthia A. Bartel & Keri L. Jacobs & Kenneth J. Moore & D. Raj Raman, 2024. "Anticipatory Technoeconomic Evaluation of Kentucky Bluegrass-Based Perennial Groundcover Implementations in Large-Scale Midwestern US Corn Production Systems," Sustainability, MDPI, vol. 16(16), pages 1-16, August.
    9. Hubbell, Bryan J. & Marra, Michele C. & Carlson, Gerald A., 2000. "Estimating The Demand For A New Technology: Bt Cotton And Insecticide Policies In The Southeast," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26016, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    10. Korir, Josphat Kiplang'at, 2016. "Factors Influencing Intensity Of Adoption Of Integrated Pest Management Package And Pesticide Misuse In The Control Of Mango Fruit Fly In Embu East Sub-County, Kenya," Research Theses 276445, Collaborative Masters Program in Agricultural and Applied Economics.
    11. Rodgers, Aaron & Morgan, Kimberly L. & Harri, Ardian, 2017. "Technology Adoption and Risk Preferences: The Case of Machine Harvesting by Southeastern Blueberry Producers," Journal of Food Distribution Research, Food Distribution Research Society, vol. 48(2), July.
    12. Conor Keelan & Fiona Thorne & Paul Flanagan & Carol Newman & Ewen Mullins, 2008. "Adoption of GM Technology at Farm Level," Working Papers 0810, Rural Economy and Development Programme,Teagasc.
    13. Kolady, Deepthi & Lesser, William H., 2005. "Adoption of Genetically Modified Eggplant in India: An Ex Ante Analysis," 2005 Annual meeting, July 24-27, Providence, RI 19262, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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