The economic value of farm program base.
A study finds that high levels of a cotton farm's initial base acreage endowment can be worth a substantial premium over low levels. Base acreage is the amount of acreage planted and “considered planted” for agricultural subsidy purposes. A representative commercial-size cotton farm was devised wi...
| Published in: | Land Economics Vol. 70; pp. 318 - 330 |
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| Main Authors: | , , |
| Format: | Article |
| Published: |
University of Wisconsin Press
August 1994
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512497565&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512497565 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00237639 LAE jtl: Land Economics issn: 00237639 maglogo: N pubinfo: dt: August 1994 vid: 70 pid: 249 pub: University of Wisconsin Press artinfo: ui: 512497565 10.2307/3146532 ppf: 318 ppct: 12 formats: tig: atl: The economic value of farm program base. aug: au: Duffy, Patricia A. Taylor, C. Robert Cain, Danny L. su: Valuation of farms Externalities Prices Cotton trade Finance Dynamic programming Integer programming Agricultural price supports United States sug: subj: United States Valuation of farms Externalities Prices Cotton trade Finance Dynamic programming Integer programming Agricultural price supports keyword: Hedonic price theory ab: A study finds that high levels of a cotton farm's initial base acreage endowment can be worth a substantial premium over low levels. Base acreage is the amount of acreage planted and “considered planted” for agricultural subsidy purposes. A representative commercial-size cotton farm was devised with data from the Northwest Alabama Farm Analysis Association and the Alabama Cooperative Extension Service. Mixed integer programming and dynamic programming analyses show that, over a five-year planning horizon, a farmer optimally spends more years out of the subsidy program when initial base endowment is low. With more initial base available and changes in annual planting decisions, the asset value of the initial base “jumps” upward. In the presence of price variability, the base's asset value falls relative to asset value under price certainty, but the pattern of rising asset value holds. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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