AN EXAMINATION OF THE EFFECTS OF PRICE SUPPORTS AND FEDERAL CROP INSURANCE UPON THE ECONOMIC-GROWTH, CAPITAL STRUCTURE, AND FINANCIAL SURVIVAL OF WHEAT GROWERS IN THE NORTHERN HIGH-PLAINS

This study examines the effects of both farm price support programs an d federally subsidized crop insurance programs upon the profitability, capital structure, and financial survival rates of High Plains wheat producers. The alternative farm programs are analyzed in an intertempo ral dynamic setting. Results indicate that the producer's first respon se to risk is to restrict the use of debt. Price support programs and crop insurance are substitutes in reducing producer risk. The availabi lity of crop insurance in a setting with price supports allows produce rs to service higher levels of debt with no increase in risk.