Land Quality and Producer Participation in U.S. Commodity Programs

H.G. Brooks, Satheesh V. Aradhyula and S.R. Johnson

Review of Agricultural Economics, 1992, vol. 14, issue 1, 105-115

Abstract: The importance of heterogeneity of land attributes in the decisions of profit-maximizing producers regarding participation in the U.S. voluntary agricultural commodity programs is investigated. The objective is to more specifically determine the incidence and responses to incentives in U.S. commodity programs. Acorn program participation rate equation is estimated using county-level data for Iowa. Results support the hypothesis that heterogeneity of land quality is an important factor explaining the rate of program participation. In addition to helping explain slippage effects, the results show that set-aside acres have had only limited effects on output.

Date: 1992
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