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Effects of Decoupling on the Average and the Variability of Output AgEcon
Serra, Teresa; Zilberman, David; Goodwin, Barry K.; Featherstone, Allen M..
Previous research has ignored the influence of inputs on output risk when assessing the effects of decoupled income-support payments on production decisions. This paper studies the impacts of agricultural policy decoupling on output variability and mean by explicitly considering the influence of agricultural input use on the stochastic component of production. We develop a theoretical framework that studies production responses of agricultural producers to apparently decoupled payments. Results show that, under DARA preferences, government transfers will have the effect of increasing production risk. Inferences on the effects of payments on output mean are also made. In our empirical application we use farm-level data collected in Kansas to illustrate the...
Tipo: Conference Paper or Presentation Palavras-chave: Decoupling; Output risk; Risk preferences; Just-Pope production function; Demand and Price Analysis; Q12; Q18.
Ano: 2005 URL: http://purl.umn.edu/24601
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RISK EFFECTS OF ALTERNATIVE WINTER COVER CROP, TILLAGE, AND NITROGEN FERTILIZATION SYSTEMS IN COTTON PRODUCTION AgEcon
Larson, James A.; Jaenicke, Edward C.; Roberts, Roland K.; Tyler, Donald D..
A Just-Pope model was developed to assess tillage, nitrogen, weather, and pest effects on risk for cotton grown after alternative winter cover crops. Yield risk for cotton after hairy vetch was less than for cotton with no winter cover when no nitrogen fertilizer was used to supplement the vetch nitrogen. However, because cotton after vetch has a higher production cost, farmers growing conventionally tilled cotton may be slow to adapt because risk-return tradeoffs may be unacceptable under risk neutrality and risk aversion. For risk-averse farmers who have already adopted no tillage, cotton grown after hairy vetch is risk efficient.
Tipo: Journal Article Palavras-chave: Cover crops; Just-Pope production function; Risk; Tillage; Crop Production/Industries.
Ano: 2001 URL: http://purl.umn.edu/15458
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