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Assessment of the Effect of the Policy Environment on Farm Decision-Making: Aggregate Acreage Response in the Canadian Prairies Under the Western Grains Stabilization Program

Author

Listed:
  • Lerohl, Mel
  • Novak, Frank
  • Miranda, Mario J.

Abstract

An aggregate acreage supply model for the Canadian prairie provinces is estimated under the assumption that farmers base acreage allocation decisions on the rational ex-ante expectationa and variance of net per hectare revenue. In order to account directly for the effects of government intervention during the period of estimation, a structural model of the Western Grains Stabilization Program is incorporated into the estimation framework. Results indicate that the revenue enhancement and revenue stabilization effects of the program both contributed nearly equally to modest increases in cropped acreage between 1976 and 1990.

Suggested Citation

  • Lerohl, Mel & Novak, Frank & Miranda, Mario J., 1992. "Assessment of the Effect of the Policy Environment on Farm Decision-Making: Aggregate Acreage Response in the Canadian Prairies Under the Western Grains Stabilization Program," Project Report Series 232354, University of Alberta, Department of Resource Economics and Environmental Sociology.
    • Handle: RePEc:ags:ualbpr:232354
    DOI: 10.22004/ag.econ.232354
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    File URL: https://ageconsearch.umn.edu/record/232354/files/ualberta-projectreports-92-08.pdf
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    References listed on IDEAS

    as
    1. John Spriggs & Brian W. Gould & Robert M. Koroluk, 1988. "Separate Crop Accounts for the Western Grain Stabilization Program," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(3), pages 443-457, November.
    2. K. K. Meilke & Alfons Weersink, 1990. "The Impact of Support Programs on Crop Area Response," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 871-885, December.
    3. Barry T. Coyle & Lars BrinK, 1990. "The Trade Distortion Effects of Stabilization Programs in Western Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 38(4), pages 861-870, December.
    Full references (including those not matched with items on IDEAS)

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