PRODUCER'S PREFERENCE FOR A COTTON FARMER OWNED RESERVE: AN APPLICATION OF SIMULATION AND STOCHASTIC DOMINANCE

The benefits to a typical High Plains cotton farmer from a cotton farmer owned reserve were estimated using a firm-level, income tax and farm policy simulation model. Eighteen farm programs were simulated including twelve variations of a farmer owned reserve using different entry prices and trigger prices. The after-tax net present value distributions for the different farm programs were compared using stochastic dominance. The results indicate that risk averse cotton producers should prefer the 1977 farm program to either a cotton farmer owned reserve or the farm program proposed by Secretary of Agriculture Block.


Issue Date:
1982-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32421
Published in:
Western Journal of Agricultural Economics, Volume 07, Number 1
Page range:
123-132
Total Pages:
10




 Record created 2017-04-01, last modified 2017-08-24

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