THE IMPACT OF PRICE STABILIZING POLICIES ON THE RISK EFFICIENT CROP FALLOW DECISIONS OF WHEAT FARMERS IN THE BROWN SOIL ZONE OF SASKATCHEWAN/

The micro-linkages between the crop/fallow decision and price-induced risk are examined for wheat producers located on the brown soils of Sa skatchewan. Three generic price stabilization policies are defined. Ba sed on a bio-economic simulation model, the risk-efficient FLEXCROP de cision rules are selected, and their corresponding cropping patterns a re assessed for each generic price stabilization policy. Assuming no s ubsidy component within the mandatory price stabilization program: ris k lovers reduce cropped acreages by 0% to 4%, depending upon both the risk-aversion level and the stabilizing program and risk-averse produc ers increase cropped acreage from 10% to 35% over no price stabilizati on.