Modeling Government Program Participation Decisions at the Farm Level

Gregory Perry, Bruce McCarl, M. Edward Rister and James Richardson ()

American Journal of Agricultural Economics, 1989, vol. 71, issue 4, 1011-1020

Abstract: Changes in the U.S. farm economy during the 1980s have caused many farmers to give careful consideration to participation in the government farm program. Analytical techniques to identify optimal participation and resulting crop mix strategies at a whole-farm level can aid farmers faced with these decisions. This paper presents a mathematical programming approach adaptable to farm-level decision analysis. An empirical example involving a Texas farm suggests that resource levels, base acreage endowments, limited cross compliance, and returns outside the program can influence participation decisions.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:71:y:1989:i:4:p:1011-1020.

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