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Modeling Government Program Participation Decisions at the Farm Level

Author

Listed:
  • Gregory M. Perry
  • Bruce A. McCarl
  • M. Edward Rister
  • James W. Richardson

Abstract

Changes in the U.S. farm economy during the 1980s have caused many farmers to give careful consideration to participation in the government farm program. Analytical techniques to identify optimal participation and resulting crop mix strategies at a whole-farm level can aid farmers faced with these decisions. This paper presents a mathematical programming approach adaptable to farm-level decision analysis. An empirical example involving a Texas farm suggests that resource levels, base acreage endowments, limited cross compliance, and returns outside the program can influence participation decisions.

Suggested Citation

  • Gregory M. Perry & Bruce A. McCarl & M. Edward Rister & James W. Richardson, 1989. "Modeling Government Program Participation Decisions at the Farm Level," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1011-1020.
    • Handle: RePEc:oup:ajagec:v:71:y:1989:i:4:p:1011-1020.
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    File URL: http://hdl.handle.net/10.2307/1242677
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    Citations

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    Cited by:

    1. Önal, Hayri & Monke, James D., 1996. "Incorporating the 1990 Farm Bill into Farm-Level Decision Models: An Application to Cotton Farms: Comment," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(1), pages 211-213, July.
    2. Paul Gallagher & Mark Dikeman & John Fritz & Eric Wailes & Wayne Gauthier & Hosein Shapouri, 2003. "Supply and Social Cost Estimates for Biomass from Crop Residues in the United States," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(4), pages 335-358, April.
    3. Brooks, Harvey G., 1990. "Three studies in economics," ISU General Staff Papers 1990010108000010481, Iowa State University, Department of Economics.
    4. Kilkenny, Maureen, 1991. "The "30-30-30 Proposal": CGE Simulation of Unilateral Compliance by the USA to Partial Trade Liberalization," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271354, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Chien, Ming-Che & Leatham, David J., 1994. "The Value Of Planting Flexibility Provisions In The 1990 Farm Bill To Three Representative Texas Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(1), pages 1-10, July.
    6. Ahumada, Omar & Villalobos, J. Rene, 2009. "Application of planning models in the agri-food supply chain: A review," European Journal of Operational Research, Elsevier, vol. 196(1), pages 1-20, July.
    7. Duffy, Patricia A. & Cain, Danny L. & Young, George J., 1993. "Incorporating The 1990 Farm Bill Into Farm-Level Decision Models: An Application To Cotton Farms," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 25(2), pages 1-15, December.
    8. Gallagher, Paul W. & Dikeman, Mark & Fritz, John & Wailes, Eric J. & Gauthier, Wayne M. & Shapouri, Hosein, 2003. "Biomass From Crop Residues: Cost And Supply Estimates," Agricultural Economic Reports 34063, United States Department of Agriculture, Economic Research Service.
    9. Parveen Setia & Bengt Hyberg & Daniel Ugarte & Daryll Ray, 1997. "Planting flexibility: Implications for agricultural sustainability," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(3), pages 299-311, August.
    10. McLean-Meyinsse, Patricia E. & Hui, Jianguo & Joseph, Randolph, Jr., 1994. "An Empirical Analysis Of Louisiana Small Farmers' Involvement In The Conservation Reserve Program," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-7, December.
    11. Gallagher, Paul W. & Dikeman, Mark & Fritz, John & Wailes, Eric & Gauthier, Wayne & Shapouri, Hosein, 2003. "Supply and Social Cost Estimates for Biomass from Crop Residues in the United States," ISU General Staff Papers 200304010800001493, Iowa State University, Department of Economics.
    12. Poon, Kenneth, 2013. "Risky Business: Factors Affecting Participation Rate of AgriStability," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150978, Agricultural and Applied Economics Association.
    13. Painter, Kathleen M. & Young, Douglas L., 1994. "Environmental And Economic Impacts Of Agricultural Policy Reform: An Interregional Comparison," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(2), pages 1-12, December.

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