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Effects on a Corn‐Soybean Farm of Uncertainty about the Future of Farm Programs
Author(s) -
Duffy Patricia A.,
Taylor C. Robert
Publication year - 1994
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 - 10.2307/1243928
Subject(s) - continuation , value (mathematics) , agricultural science , agricultural engineering , sowing , agricultural economics , mathematics , economics , computer science , statistics , agronomy , environmental science , engineering , biology , programming language
Abstract Dynamic programming techniques are used to evaluate effects of uncertainty about continuation of farm programs on planting decisions during the last year of the 1990 Farm Bill. Results indicate farm‐level decisions are affected by uncertainty only when the farmer's subjective probability of the continuation of farm programs is very low. The optimal value functions in different versions of the model can also be used to estimate the implicit value of base acreage.