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Understanding the Economic Factors Influencing Farm Policy Preferences

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  • Keith H. Coble
  • Thomas O. Knight
  • George F. Patrick
  • Alan E. Baquet

Abstract

A survey conducted in Mississippi, Texas, Indiana, and Nebraska elicited producers' preferences for various farm policy changes. This permitted examination of the diversity of preferences that single-state studies have not allowed. Five policy choices, including deficiency payments, loan programs, crop insurance, export programs, and disaster payments were examined. Logit model results predicting producer preferences for each of the five dichotomous policy choices are reported. Explanatory variables based on expected utility theory such as risk aversion, price and yield variability, and price-yield correlation are significant in various models.

Suggested Citation

  • Keith H. Coble & Thomas O. Knight & George F. Patrick & Alan E. Baquet, 2002. "Understanding the Economic Factors Influencing Farm Policy Preferences," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(2), pages 309-321.
    • Handle: RePEc:oup:revage:v:24:y:2002:i:2:p:309-321.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00021
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    1. Peter F. Orazem & Daniel M. Otto & Mark A. Edelman, 1989. "An Analysis of Farmers' Agricultural Policy Preferences," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 837-846.
    2. David A. Hennessy & Bruce A. Babcock & Dermot J. Hayes, 1997. "Budgetary and Producer Welfare Effects of Revenue Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1024-1034.
    3. Mark A. Edelman & Paul Lasley, 1988. "An Analysis of the Agricultural and Trade Policy Preferences of Iowa Farm Operators," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 10(2), pages 243-254.
    4. F.G. Scrimgeour & E.C. Pasour, 1996. "A Public Choice Perspective on Agricultural Policy Reform: Implications of the New Zealand Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 257-267.
    5. David A. Hennessy & Bruce A. Babcock & Dermot J. Hayes, 1997. "Budgetary and Producer Welfare Effects of Revenue Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1024-1034.
    6. Andrew P. Barkley & Barry L. Flinchbaugh, 1990. "Farm Operator Opinion and Agricultural Policy; Kansas Survey Results," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 12(2), pages 223-239.
    7. Edelman, Mark & Lasley, Paul, 1988. "An Analysis of Agricultural and Trade Policy Preferences of Iowa Farm Operators," Staff General Research Papers Archive 11041, Iowa State University, Department of Economics.
    8. Kastens, Terry L. & Goodwin, Barry K., 1994. "An Analysis of farmers' Policy Attitudes and Preferences for Free Trade," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 497-505, December.
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    Cited by:

    1. Barham, E. Hart Bise & Robinson, John R.C. & Richardson, James W. & Rister, M. Edward, 2011. "Mitigating Cotton Revenue Risk Through Irrigation, Insurance, and Hedging," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(4), pages 1-12, November.
    2. Allan W. Gray & Michael D. Boehlje & Brent A. Gloy & Stephen P. Slinsky, 2004. "How U.S. Farm Programs and Crop Revenue Insurance Affect Returns to Farm Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 238-253.
    3. Heo, Seong-Yoon & Kim, Sanghyo & Zulauf, Carl & Lee, Kye-Im, 2016. "Satisfaction with Food Policies for Consumer: A Case Study of South Korea," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236145, Agricultural and Applied Economics Association.
    4. Jason Loughrey & Fiona Thorne & Thia Hennessy, 2016. "A Microsimulation Model for Risk in Irish Tillage Farming," International Journal of Microsimulation, International Microsimulation Association, vol. 9(2), pages 41-76.
    5. Peterson, Hikaru Hanawa & Tomek, William G., 2001. "Income-Enhancing And Risk-Reducing Properties Of Marketing Practices," 2001 Annual meeting, August 5-8, Chicago, IL 20613, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Peterson, Hikaru Hanawa & Tomek, William G., 2001. "Income Enhancing and Risk Management Properties of Marketing Practices," Working Papers 127653, Cornell University, Department of Applied Economics and Management.
    7. Gray, Allan W. & Boehlje, Michael & Gloy, Brent A. & Slinsky, Stephen P., 2002. "Government Program Payment Mechanisms, Crop Revenue Coverage Insurance, and the Return to Farm Land," 2002 Regional Committee NC-221, October 7-8, 2002, Denver, Colorado 132370, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.

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