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American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) >
2008 Annual Meeting, July 27-29, 2008, Orlando, Florida >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/6197
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| Title: | A Revenue-Based Alternative to the Counter-Cyclical Payment Program |
| Authors: | Cooper, Joseph |
| Authors (Email): | Cooper, Joseph (jcooper@ers.usda.gov) |
| Keywords: | Domestic support
counter-cyclical payments
revenue
price
corn
yield
pairs bootstrap
kernel density
semi-nonparametric
combinatorial optimization |
| Issue Date: | 2008 |
| Series/Report no.: | Selected Paper
468816 |
| Abstract: | This paper develops a stochastic model for comparing payments to U.S. corn producers of a revenue-based counter-cyclical payment (R-CCP) that is offered as an alternative in the 2007 House "Farm Bill" (H.R. 2419) to the current price-based CCP (P-CCP). We minimize the potential for miss-specification bias in the model by using nonparametric and semi-nonparametric approaches as specification checks in the model. Using this model, the paper examines the sensitivity of the density function for payments to changes in expected price levels. A mean-variance utility function approach is used to assess producer preferences for choice of CCP program alternative. The results show that as risk reduction instruments at the farm level, there appears to be little effective difference between the P-CCP and the R-CCP. At the national level, however, the R-CCP has the potential for increasing Federal budgetary exposure relative to the P-CCP when expected prices are low. |
| URI: | http://purl.umn.edu/6197 |
| Institution/Association: | American Agricultural Economics Association>2008 Annual Meeting, July 27-29, 2008, Orlando, Florida |
| Total Pages: | 32 |
| Collections: | 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida
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| 468816.pdf | | 264Kb | PDF | View/Open |
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