Cotton Acreage Response under Uncertainty

Kasazi Shalishali and Patricia A. Duffy


 
ABSTRACT

A household decision model that includes output price and yield uncertainty was used to estimate cotton and soybean acreage response for Alabama and Georgia. The model fit the Alabama data well, resulting in own-price elasticity estimates of 0.57 for cotton and 1.04 for soybeans. The Georgia data did not yield significant own-profit effects. For both states, statistical tests led to the conclusion that producers are not risk neutral.



Reprinted from 1993 Proceedings Beltwide Cotton Conferences pp. 471 - 474
©National Cotton Council, Memphis TN

[Main TOC] | [TOC] | [TOC by Section] | [Search] | [Help]
Previous Page [Previous] [Next] Next Page
 
Document last modified Sunday, Dec 6 1998