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The Value of Planting Flexibility Provisions in the 1990 Farm Bill to Three Representative Texas Farms

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  • Chien, Ming-Che
  • Leatham, David J.

Abstract

The 1990 Farm Bill reduces deficiency payments but also provides more planting flexibility for program participants. In this study, a mean-standard deviation analysis is used to analyze the impacts of planting flexibility provisions on crop selection decisions, farm returns, and farm risk. Results show that gains from the added planting flexibility do not offset the mandatory loss in the deficiency payments for program participants. Planting flexibility will lead to an increase in corn and wheat planted in the Northern Plains and an increase in cotton planted in the Rolling Plains and Coastal Bend, Texas.

Suggested Citation

  • Chien, Ming-Che & Leatham, David J., 1994. "The Value of Planting Flexibility Provisions in the 1990 Farm Bill to Three Representative Texas Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(1), pages 148-157, July.
    • Handle: RePEc:cup:jagaec:v:26:y:1994:i:01:p:148-157_01
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    1. Richardson, James W. & Smith, Edward G. & Sechrist, Daniel R. & Knutson, Ronald D., 1990. "Farm Level Impacts of Flexibility," Working Papers 258043, Texas A&M University, Agricultural and Food Policy Center.
    2. Perry, Gregory M. & Rister, M. Edward & Richardson, James W. & Bessler, David A., 1989. "Incorporating Government Program Provisions Into A Mean-Variance Framework," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(2), pages 1-11, December.
    3. McCarl, Bruce A. & Bessler, David A., 1989. "Estimating An Upper Bound On The Pratt Risk A Version Coefficient When The Utility Function Is Unknown," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-8, April.
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    6. Tsiang, S C, 1972. "The Rationale of the Mean-Standard Deviation Analysis, Skewness Preference, and the Demand for Money," American Economic Review, American Economic Association, vol. 62(3), pages 354-371, June.
    7. Gregory M. Perry & Bruce A. McCarl & M. Edward Rister & James W. Richardson, 1989. "Modeling Government Program Participation Decisions at the Farm Level," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 1011-1020.
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    1. Wu, Shunxiang & Walker, David J. & Brusven, Merlyn A., 1997. "Economic And Environmental Impacts Of Planting Flexibility And Conservation 1990 Farm Bills For Future Farm Legislation," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(2), pages 1-13, October.
    2. Raulston, J. & Klose, Steven & Outlaw, Joe & Richardson, James, 2007. "The Impact of Increased Planting Flexibility on Planting Decisions Across Texas," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2007, pages 1-10.

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