Acreage Decisions Under Risk: The Case of Corn and Soybeans

Jean-Paul Chavas () and Matthew Holt

No 271540, 1990 Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk Meeting, January 28-31, 1990, Sanibel Island, Florida from Regional Research Projects > S-232: Quantifying Long Run Agricultural Risks and Evaluating Farmer Responses to Risk

Abstract: An acreage supply response model is developed under expected utility maximization. The resulting framework is used to specify and estimate a system of risk-responsive acreage equations for corn and soybeans in the U.S. Particular attention is given to the truncation effects of government price supports on the distribution of corn and soybean prices. Also, a wealth variable is included in the acreage equations. The empirical results indicate that risk and wealth variables play an important role in cornsoybean acreage decisions. The analysis also shows that cross-commodity risk reduction is important in acreage allocation decisions.

Keywords: Crop Production/Industries; Land Economics/Use; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 23
Date: 1990-04
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Citations: View citations in EconPapers (226)

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Journal Article: Acreage Decisions Under Risk: The Case of Corn and Soybeans (1990)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:rrsr90:271540

DOI: 10.22004/ag.econ.271540

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