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Technology choice under changing peanut policies

  • T. Jeffrey Price
  • Marshall C. Lamb
  • Michael E. Wetzstein
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    The effect of marketing quotas and price supports on technology adoption are examined for peanut production in the southeastern United States using a real options model of investment with output price and yield uncertainty. The optimal choice of peanut production technology (dryland versus irrigated) in the southeast is shown to depend on price supports and how they change. The manner in which price supports change will have an effect on the choice and rates of abandonment or adoption of production technologies. Copyright 2005 International Association of Agricultural Economics.

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    Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

    Volume (Year): 33 (2005)
    Issue (Month): 1 (07)
    Pages: 11-19

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    Handle: RePEc:bla:agecon:v:33:y:2005:i:1:p:11-19
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