The Policy Implications of Corn and Soybean·Supply Response to Risk

Joyce A. Hall and B Brorsen

No 270502, 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Risk responsive corn and soybean acreage response models are estimated for the Corn Belt states (1970-1986). The elasticities with respect to risk are used in a stochastic simulation model along with previous estimates for land price. Alternate program scenarios are simulated with and without allowing risk to affect acreage response and land price. The econometric estimates show acreage to be significantly responsive to price risk. The simulations show the effect of risk on supply response to have a quantifiable impact on the level and variation of producer revenues and land prices.

Keywords: Agricultural and Food Policy; Crop Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 26
Date: 1989-07-30
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea89:270502

DOI: 10.22004/ag.econ.270502

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