Program and Nonprogram Wheat Acreage Responses to Prices and Risk

• Main Authors: Mark A. Krause, Jung-Hee Lee, Won W. Koo
• Format: Article
• Language: English
• Published: Western Agricultural Economics Association 1995-07-01
• Series: Journal of Agricultural and Resource Economics
• Subjects: censored regression; government programs; wheat acreage
• Online Access: https://ageconsearch.umn.edu/record/30930

Wheat acreage responses to expected wheat price and price risk are reversed for program and nonprogram-planted acreage in the northern plains, central plains, southern plains, and U.S. Expected wheat price has a strong negative effect on program-complying wheat acreage. Government support prices have a positive effect on program-complying and program-planted acreage. Price risk has a positive effect on program-complying wheat acreage and a negative effect on nonprogram-planted acreage. Estimated price elasticities are higher than in studies where risk was ignored.