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Soil Conservation or Commodity Programs: Trade Offs During the Transition to Dryland Crop Production

Published online by Cambridge University Press:  08 February 2017

John G. Lee ,
Ronald D. Lacewell  and
James W. Richardson
John G. Lee
Affiliation:
Department of Agricultural Economics, Purdue University
Ronald D. Lacewell
Affiliation:
Department of Agricultural Economics, Texas A&M University
James W. Richardson
Affiliation:
Department of Agricultural Economics, Texas A&M University
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Abstract

Predicted crop yields and wind erosion rates from a multi-year/multi-crop growth simulation model provided input into a multi-period recursive QP model to evaluate erosion implications during the transition to dryland crop production on the Texas Southern High Plains. Three farm-program participation options were considered in this study. Participation in an extension of the current farm program resulted in an increase in net returns and wind erosion rates above nonparticipation. Imposition of a soil loss limit without consideration of a flexible base option can significantly reduce discounted present values. Increasing risk aversion across producers affects crop mix selection which can result in lower per acre wind erosion rates for this particular region.

Keywords

farm sizeproduction costsstochastic dynamic programming
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 23 , Issue 1 , July 1991 , pp. 203 - 211
Copyright
Copyright © Southern Agricultural Economics Association 1991

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