Southern Farmers' Exposure to Income Risk Under the 1996 Farm Bill

Journal of Agriculture and Applied Economics, Vol. 30, No. 1, July 1998

Posted: 8 Jun 1998

See all articles by Ronald D. Knutson

Ronald D. Knutson

Texas A&M University - Department of Agricultural Economics

Edward G. Smith

Texas A&M University - Department of Agricultural Economics

David P. Anderson

Texas A&M University - Department of Agricultural Economics

James W. Richardson

Texas A&M University - Department of Agricultural Economics

Abstract

This paper investigates the farm-level impacts of the 1996 farm bill on the South. Focus group perceptions of risk sources, observed acreage changes, and the farm-level impact of increased price risk are evaluated. Focus group respondents ranked price and yield as the two most important sources of risk, and diversification was ranked highly as a risk-management tool. Limited data suggest that acreage shifts among crops are occurring in the South, presumably aided by the 1996 farm bill. Higher probabilities of cash flow deficits are estimated for cotton and rice relative to feedgrain, wheat, and oilseed operations.

JEL Classification: Q12, Q18

Suggested Citation

Knutson, Ronald D. and Smith, Edward G. and Anderson, David P. and Richardson, James W., Southern Farmers' Exposure to Income Risk Under the 1996 Farm Bill. Journal of Agriculture and Applied Economics, Vol. 30, No. 1, July 1998, Available at SSRN: https://ssrn.com/abstract=94428

Ronald D. Knutson (Contact Author)

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843-4218
United States
409-845-5913 (Phone)
409-845-3140 (Fax)

Edward G. Smith

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843-4218
United States
409-845-1751 (Phone)

David P. Anderson

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843-4218
United States
409-845-6322 (Phone)

James W. Richardson

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843-4218
United States
409-845-5913 (Phone)

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