Assessing the Impacts of Soil Carbon Credits and Risk on No-Till Rice Profitability

K. Bradley Watkins, Jeffrey A. Hignight and Merle M. Anders

No 45806, 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia from Southern Agricultural Economics Association

Abstract: Rice is a major cash crop in eastern Arkansas, but most rice acres are intensively cultivated and grown on rented land. No-till is an effective means of sequestering soil carbon and reducing greenhouse gas emissions, and economic incentives exist for no-till in the form of carbon credits. Studies evaluating the economic potential of carbon credits focus on producers only and do not take into consideration the landlord’s perspective. This analysis evaluates the profitability and risk efficiency of no-till management and carbon credits in Arkansas rice production from the prospective if the landlord using simulation and stochastic efficiency with respect to a function (SERF). The results indicate carbon credits may have potential to enhance preference for no-till in rice production by risk-averse landlords.

Keywords: Farm Management; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 25
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/45806/files/Watkins%202009.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:saeana:45806

DOI: 10.22004/ag.econ.45806

Access Statistics for this paper

More papers in 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia from Southern Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().