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Modeling Government Program Participation Decisions at the Farm Level
Author(s) -
Perry Gregory M.,
McCarl Bruce A.,
Rister M. Edward,
Richardson James W.
Publication year - 1989
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1242677
Subject(s) - government (linguistics) , resource (disambiguation) , business , agricultural economics , economics , public economics , computer science , computer network , philosophy , linguistics
Changes in the U.S. farm economy during the 1980s have caused many farmers to give careful consideration to participation in the government farm program. Analytical techniques to identify optimal participation and resulting crop mix strategies at a whole‐farm level can aid farmers faced with these decisions. This paper presents a mathematical programming approach adaptable to farm‐level decision analysis. An empirical example involving a Texas farm suggests that resource levels, base acreage endowments, limited cross compliance, and returns outside the program can influence participation decisions.