An Analysis of the 1964 Wheat Option

Max Moszer

American Journal of Agricultural Economics, 1969, vol. 51, issue 1, 100-118

Abstract: Wheat farmers operate in a quasi free market in which guaranteed price minima are available upon satisfaction of governmental imposed preconditions. A method is developed with which farmers can evaluate the profitability of available alternatives. In general, there must be sufficient land so that the acreage of wheat relative to the allotment exceeds the ratio of the loan rate to the expected free market price. These break even criteria can be used by policy planners to evaluate proposed programs and to determine their efficacy before their implementation. Ideally, programs should be structured so that the most profitable alternative for the farmer is also the one that will achieve the policy goal. An analysis of statewide aggregate data confirms the theoretical conclusion, based on this methodology, that full participation without additional voluntary diversion was the most profitable alternative open to the wheat farmer in 1964.

Date: 1969
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.2307/1238309 (application/pdf)
Access to full text is restricted to subscribers.

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:oup:ajagec:v:51:y:1969:i:1:p:100-118.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().