Farmers' Response to the Reserve: An Analysis of Economic and Structural Factors

William H. Meyers, Robert W. Jolly and Mary E. Ryan

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: Firm-level decision models and farm survey data are examined to identify the major factors which influence participation and redemption decisions and to rationalize the different patterns,of response among farms. The major factors identified as important to the farmer's decisions are alternative marketing or feeding opportunities, storage costs, risk-bearing ability, cash flow requirements, price expectations and reserve program provisions. The survey results show the differing responses of farmers to be related to many of these factors. Larger, specialized cash-grain farms were more likely to participate than smaller, diversified farms. Among participants the largest cash-grain farms were most likely to continue holding reserve grain after the release.

Date: 1981-02-01
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