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The Impact of Price Support on Set-Aside Responses to an Increase in Price Uncertainty

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  • Fraser, Rob

Abstract

This paper examines the impact of increased price uncertainty on the decision to set aside croppable land. It is shown that the standard response of increased set-aside may not occur if the commodity in question is also subject to a price-support policy. In this situation, conflicting effects on the set-aside decision arise because an increase in underlying price uncertainty may increase not just the variability but also the expected level of producer prices. Copyright 1994 by Oxford University Press.

Suggested Citation

  • Fraser, Rob, 1994. "The Impact of Price Support on Set-Aside Responses to an Increase in Price Uncertainty," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 21(1), pages 131-136.
    • Handle: RePEc:oup:erevae:v:21:y:1994:i:1:p:131-36
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    Cited by:

    1. Chang, Hung-Hao & Chen, Yu-Hui, 2011. "Are participators in the land retirement program likely to grow energy crops?," Applied Energy, Elsevier, vol. 88(9), pages 3183-3188.
    2. Pannell, David J. & Malcolm, Bill & Kingwell, Ross S., 2000. "Are we risking too much? Perspectives on risk in farm modelling," Agricultural Economics, Blackwell, vol. 23(1), pages 69-78, June.
    3. Kuroda, Yoshimi & Abdullah, Naziruddin, 2003. "Impacts of Set-Aside and R&E Policies on Agricultural Productivity in Japan, 1965-97," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 5, pages 1-23.
    4. Rob Fraser, 1997. "Land Heterogeneity And The May 1992 Reform Of Cap Cereal Price Support," Journal of Agricultural Economics, Wiley Blackwell, vol. 48(1‐3), pages 65-70, January.

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