Seasonal variability and a farmer's supply response to protein premiums and discounts

Robert Fraser

Australian Journal of Agricultural and Resource Economics, 1998, vol. 42, issue 01, 9

Abstract: This article extends the analysis of the impact of a system of protein premiums and discounts to that on a farmer’s planned production. Despite an unambiguously negative impact on expected profits of equally likely premiums and discounts, supply response to the introduction of such a system is shown to depend on the level of seasonal variability faced by the farmer. In particular, farmers in regions which are more seasonally unreliable are likely to feature a negative supply response, whereas those in regions which are more seasonally reliable are likely to feature a positive supply response. Consequently, it is suggested that, overall, protein payments for wheat may have encouraged a shift of wheat‐growing activity away from more seasonally unreliable areas.

Keywords: Farm; Management (search for similar items in EconPapers)
Date: 1998
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Seasonal variability and a farmer's supply response to protein permiums and discounts (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:117220

DOI: 10.22004/ag.econ.117220

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