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The Effects of Increasing Flex Acres on Farm Planning and Profitability

Published online by Cambridge University Press:  15 September 2016

Patricia A. Duffy  and
C. Robert Taylor
Patricia A. Duffy
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, Alabama
C. Robert Taylor
Affiliation:
Department of Agricultural Economics and Rural Sociology, Auburn University, Alabama
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Abstract

Dynamic programming techniques were used to evaluate the effects of alternative levels of normal flex acreage requirements on a Midwestern corn-soybean farm and a Southeastern cotton farm. Results indicate that increasing normal flex acres from the current level of 15 percent to 35 percent would provide inducement for farmers in both regions to plant more soybeans. In general, the cotton farm incurs considerably higher expected losses from the change. Thus, there are unequal regional consequences of such a policy change.

Type
Agricultural, Resource, and Environmental Policies in the 1990s
Information
Agricultural and Resource Economics Review , Volume 23 , Issue 1 , April 1994 , pp. 47 - 57
Copyright
Copyright © 1994 Northeastern Agricultural and Resource Economics Association 

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