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On the Inclusion of Hay in Ontario's Gross Revenue Insurance plan: A Target Semivariance Approach
Author(s) -
Skelton Catherine,
Turvey Calum G.
Publication year - 1994
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349472
Subject(s) - semivariance , revenue , inclusion (mineral) , business , economics , plan (archaeology) , hay , agricultural economics , finance , geography , chemistry , zoology , mathematics , statistics , archaeology , biology , mineralogy , spatial variability
Abstract This article examines the effects of including or excluding hay under Canada's new Gross Revenue Insurance Plan on optimal beef input (feed ration) and output decisions. Using a representative target‐semivariance model of a medium‐sized Ontario feedlot, it is shown that inclusion of hay as a program crop would have little effect on either choice of feed ration or beef production. In fact, since greater price protection/benefits accrue to program crops such as corn, corn silage, and soybeans, plantings of these crops crowd out both the growing of hay and the use of hay‐based feed rations.