EFFECTS ON A CORN-SOYBEAN FARM OF UNCERTAINTY ABOUT THE FUTURE OF FARM PROGRAMS

Authors
DUFFY PA TAYLOR CR
Citation
Pa. Duffy et Cr. Taylor, EFFECTS ON A CORN-SOYBEAN FARM OF UNCERTAINTY ABOUT THE FUTURE OF FARM PROGRAMS, American journal of agricultural economics, 76(1), 1994, pp. 141-152
Citations number
15
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
Journal title
American journal of agricultural economics → ACNP
ISSN journal
00029092
Volume
76
Issue
1
Year of publication
1994
Pages
141 - 152
Database
ISI
SICI code
0002-9092(1994)76:1<141:EOACFO>2.0.ZU;2-Q
Abstract
Dynamic programming techniques are used to evaluate effects of uncerta inty about continuation of farm programs on planting decisions during the last year of the 1990 Farm Bill. Results indicate farm-level decis ions are affected by uncertainty only when the farmer's subjective pro bability of the continuation of farm programs is very low. The optimal value functions in different versions of the model can also be used t o estimate the implicit value of base acreage.