Estimating an Ex Ante Cost Function for Belgian Arable Crop Farms

Kristiana Hansen, Alexandre Baudry, Rembert De Blander (), Bruno Henry de Frahan and Philippe Polome ()

No 49477, 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin from Agricultural and Applied Economics Association

Abstract: We estimate a farm-level cost function for Belgian crop farms using FADN data over the study period 1996-2006. We rely on an estimation of farmers' expected yields at the time cropping decisions are made rather than actual yields observed in the FADN data. The use of an ex ante cost function improves the cost function estimation. We subsequently suggest how our cost function can be used in simulations to analyze farmer response to changes in output price risk.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 23
Date: 2009
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea09:49477

DOI: 10.22004/ag.econ.49477

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