The Dynamics of Flex

Chad Hart and Darnell Smith

No 285629, 1981-1999 Conference Archive from NCR-134/ NCCC-134 Applied Commodity Price Analysis, Forecasting, and Market Risk Management

Abstract: As debate begins on the 1995 Farm Bill. One of the leading proposals for future farm policy is the expansion of the flex provision. This move would further limit the number of acres eligible for deficiency payments and increase the farmer's ability to respond to market and weather conditions. But how has the current flex provision affected agriculture? This paper examines how flex has been applied in different regions of the country and for different crops. The major producing regions of program crops often retain most of the flex acreage in the base crop while other regions use the flex acreage to shift to other crops or to idle the land. An economeric specification is put forth to investigate the impacts of market, weather, and farm program factors on flex usage. Responses to these factors vary across regions and across crops. Thus, flex has had vastly different regional impacts. Implications for the proposed expansion of flex are then discussed.

Keywords: Marketing (search for similar items in EconPapers)
Date: 1995-04
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nc8191:285629

DOI: 10.22004/ag.econ.285629

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