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Are Government Programs Influencing Input Intensity?

Author

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  • James W. Mjelde
  • M. Edward Rister
  • Ronald C. Griffin
  • Lawrence A. Lippke

Abstract

Optimal variable input levels for farm program crops are examined. Calculus-derived inferences are contrasted for participating and nonparticipating producers. The effects of unfreezing farm program yields are also examined. An empirical extension of the methodology is presented using dynamic programming as a means of capturing the stochastic elements of the issue. Slightly higher optimal variable input levels per acre are identified for the participating and the unfrozenyield scenarios, over the nonparticipating scenarios. Factors affecting differences in optimal input use include expected net harvest price, curvature of the production function, input, cost, and the discount rate.

Suggested Citation

  • James W. Mjelde & M. Edward Rister & Ronald C. Griffin & Lawrence A. Lippke, 1992. "Are Government Programs Influencing Input Intensity?," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 14(2), pages 227-239.
    • Handle: RePEc:oup:revage:v:14:y:1992:i:2:p:227-239.
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    File URL: http://hdl.handle.net/10.2307/1349502
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    Cited by:

    1. Roman Keeney & Thomas W. Hertel, 2008. "U.S. Market Potential For Dried Distillers Grain With Solubles," Working Papers 08-13, Purdue University, College of Agriculture, Department of Agricultural Economics.
    2. Lin, Biing-Hwan & Padgitt, Merritt & Bull, Len & Delvo, Herman & Shank, David & Taylor, Harold, 1995. "Pesticide and Fertilizer Use and Trends in U.S. Agriculture," Agricultural Economic Reports 308423, United States Department of Agriculture, Economic Research Service.

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