IDEAS home Printed from https://ideas.repec.org/p/ags/sraubu/23814.html
   My bibliography  Save this paper

Effect Of Risk Perspective On Fertilizer Choice By Sharecroppers

Author

Listed:
  • Paudel, Krishna P.
  • Lohr, Luanne
  • Martin, Neil R., Jr.

Abstract

Peanut and corn are two major crops in the tri-state area of the Southeast US, an area encompassing North Florida, Southwest Georgia, and Southeast Alabama. Sharecroppers in this region apply higher amount of input in crop production than the average farmers. We analyzed the behavior of sharecroppers in this region with regard to their fertilizer application decisions. Two hypotheses were formulated and tested based on sharecroppers' fertilizer application decisions: one assuming that sharecroppers are risk averse farmers and the other assuming that sharecroppers are regret minimizers. Our results show that a sharecropper uses different fertilizer treatments when minimizing risk depending on risk perspective and desired income. Sharecroppers who apply more fertilizer to obtain a desired level of income are regret minimizers where as sharecroppers who apply relatively low fertilizer are risk minimizer. At the same desired level of income, a regret minimizer farmer would apply a higher amount of fertilizer than the risk averse farmers. Our analysis revealed that sharecroppers in the Southeast US are regret minimizers as they apply a higher amount of fertilizer than an average farmer on the major crops grown in the region. The result of this study also confirms the result of a previous study in the region which reported that sharecroppers in the region are over capitalized and apply more fertilizer than average farmers.

Suggested Citation

  • Paudel, Krishna P. & Lohr, Luanne & Martin, Neil R., Jr., 2000. "Effect Of Risk Perspective On Fertilizer Choice By Sharecroppers," Series Reports 23814, Auburn University, Department of Agricultural Economics and Rural Sociology.
  • Handle: RePEc:ags:sraubu:23814
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/23814
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Douglas W. Allen & Dean Lueck, 1993. "Transaction Costs and the Design of Cropshare Contracts," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 78-100, Spring.
    2. P. B. R. Hazell, 1971. "A Linear Alternative to Quadratic and Semivariance Programming for Farm Planning under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(1), pages 53-62.
    3. Daniel Arce, 1995. "Social norms and core outcomes in a sharecropping economy," Journal of Economics, Springer, vol. 61(2), pages 175-183, June.
    4. Baron, Donald, 1982. "The Effects of Tenancy and Risk on Cropping Patterns: A Mathematical Programming Analysis," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
    5. Tek-Ann Chew, 1993. "The Transactional Framework of Sharecropping: Further Implications," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 41(2), pages 209-221, July.
    6. Otsuka, Keijiro & Hayami, Yujiro, 1988. "Theories of Share Tenancy: A Critical Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 37(1), pages 31-68, October.
    7. B. Curtis Eaves, 1971. "On Quadratic Programming," Management Science, INFORMS, vol. 17(11), pages 698-711, July.
    8. Paudel, Krishna P. & Lohr, Luanne & Martin, Neil R., 1998. "Optimal input cost sharing for tenants: Implications for negotiating efficiency," Agricultural Systems, Elsevier, vol. 57(1), pages 1-11, May.
    9. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Contractual Structure in Agriculture," American Economic Review, American Economic Association, vol. 75(3), pages 352-367, June.
    10. Braverman, Avishay & Stiglitz, Joseph E., 1986. "Landlords, tenants and technological innovations," Journal of Development Economics, Elsevier, vol. 23(2), pages 313-332, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Crawford, Eric W. & Jayne, Thomas S. & Kelly, Valerie A., 2005. "Alternative Approaches for Promoting Fertilizer Use in Africa, with Particular Reference to the Role of Fertilizer Subsidies," Staff Papers 11557, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:sraubu:23814. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/daaubus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.