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| Bhaskar, Arathi; Beghin, John C.. |
| In the context of the U.S farm policy, this paper analyzes the effect that expectations about base updating in future policies have on a farmer’s acreage decision in the presence of price, yield and policy uncertainty. We consider a risk neutral farmer producing a single crop whose income consists of market revenue and government payments. We consider two policy regimes. Decisions made in the current policy regime are linked to government payments in the future policy regime through the possibility of a base update in the future regime. There is policy uncertainty about the possibility of a base update being allowed in the future. We combine stochastic dynamic programming with present value calculations to link current acreage decisions to future program... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Agricultural Finance. |
| Ano: 2007 |
URL: http://purl.umn.edu/7350 |
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| Bhaskar, Arathi; Beghin, John C.. |
| In the context of the U.S farm policy, this paper analyzes the effect that expectations about base updating in future policies have on a farmer’s acreage decision in the presence of price, yield and policy uncertainty. We consider a risk neutral farmer producing a single crop whose income consists of market revenue and government payments. We consider two policy regimes. Decisions made in the current policy regime are linked to government payments in the future policy regime through the possibility of a base update in the future regime. There is policy uncertainty about the possibility of a base update being allowed in the future. We combine stochastic dynamic programming with present value calculations to link current acreage decisions to future program... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Agricultural and Food Policy; Agricultural Finance. |
| Ano: 2008 |
URL: http://purl.umn.edu/6339 |
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