MACHINERY INVESTMENT DECISIONS: A SIMULATED ANALYSIS FOR CASH GRAIN FARMS

Cole Gustafson, Peter J. Barry and Steven T. Sonka

Western Journal of Agricultural Economics, 1988, vol. 13, issue 2, 10

Abstract: A combination of experimental and simulation procedures identify important factors in an Illinois cash grain farmer's machinery investment decisions. In an experiment setting, a panel of farmers based investment decisions on their own expectations, farm situations, and varying policy scenarios. In general, the results show investment levels statistically related to the tenure and leverage of operators, the economic conditions they faced, and the age of existing machinery. Alternative public policies of lower commodity price supports, tax reform, and interest rate subsidies influenced the timing of purchases but did not alter total investment amounts.

Keywords: Crop Production/Industries; Farm Management (search for similar items in EconPapers)
Date: 1988
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://ageconsearch.umn.edu/record/32105/files/13020244.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32105

DOI: 10.22004/ag.econ.32105

Access Statistics for this article

More articles in Western Journal of Agricultural Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().