The Dynamics of Farm Land Allocation - Short and Long Run Reactions in Long Micro Panel

Soren Arnberg and Lars Hansen

No 9978, 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This study develops a dynamic multi-output model of farmers' crop allocation decisions that allows estimation of both short-run and long-run adjustments to a wide array of economic incentives. The method can be used to inform decision makers on a number of issues including agricultural policy reform and environmental regulation. The model allows estimation of dynamic effects relating to price expectations adjustment, investment lags, and crop rotation constraints. Estimation is based on micro-panel data from Danish farmers that includes acreage, output, and variable input utilization at the crop level. Results indicate that there are substantial differences between the short- and long-run land allocation behavior of Danish farmers and that there are substantial differences in the time lags associated with different crops. Since similar farming conditions are found in northern Europe and parts of the USA and Canada this result may have more general interest.

Keywords: Land; Economics/Use (search for similar items in EconPapers)
Pages: 26
Date: 2007
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Related works:
Working Paper: The Dynamics of Farm Land Allocation – Short and Long Run Reactions in a Long Micro Panel (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea07:9978

DOI: 10.22004/ag.econ.9978

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