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Constructing Farm Level Yield Densities from Aggregated Data: Analysis and Comparison of Approaches

  • Cooper, Joseph C.
  • Langemeier, Michael R.
  • Schnitkey, Gary D.
  • Zulauf, Carl R.

Yield variability can be significantly higher at the farm level than at more aggregated levels, including the county. However, due to a dearth of available farm level data, much stochastic analysis involving farm yields utilizes more aggregated yield data as a proxy for the farm level. We empirically evaluate farm-level variability using longitudinal farm level data sets available from the Kansas Farm Management Association and the Illinois Farm Business and Farm Management Association. For corn, soybeans, and wheat, we compare the farm level yield variability obtained from this data to that inferred from Federal crop insurance premiums. The farm management data exhibit lower yield variability than are implied by the crop insurance premiums.

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File URL: http://purl.umn.edu/49216
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Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49216.

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Date of creation: 23 Apr 2009
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Handle: RePEc:ags:aaea09:49216
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  1. Langemeier, Michael R., 2005. "Comparison of 2002 Census and KFMA Farms," Staff Papers 117977, Kansas State University, Department of Agricultural Economics.
  2. Keith H. Coble & Robert Dismukes, 2008. "Distributional and Risk Reduction Effects of Commodity Revenue Program Design ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 30(3), pages 543-553.
  3. Cooper, Joseph C., 2009. "Payments under the Average Crop Revenue Program: Implications for Government Costs and Producer Preferences," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(1), April.
  4. Barry K. Goodwin, 2009. "Payment Limitations and Acreage Decisions under Risk Aversion: A Simulation Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 19-41.
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