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

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.


Issue Date:
Jul 30 1989
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/270502
Language:
English
Total Pages:
26




 Record created 2018-04-03, last modified 2018-04-03

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