PROGRAM AND NONPROGRAM WHEAT ACREAGE RESPONSES TO PRICES AND RISK
By: Krause, Mark A.; Lee, Jung-Hee; Koo, Won W.
Krause, Mark A.; Lee, Jung-Hee; Koo, Won W., PROGRAM AND NONPROGRAM WHEAT ACREAGE RESPONSES TO PRICES AND RISK, Journal of Agricultural and Resource Economics, Volume 20, Issue 1, July 1995, Pages 96-107
Wheat acreage responses to expected wheat price and price risk are reversed for program and nonprogram-planted acreage in the northern plains, central plains, southern plains, and U.S. Expected wheat price has a strong negative effect on program-complying wheat acreage. Government support prices have a positive effect on program-complying and program-planted acreage. Price risk has a positive effect on program-complying wheat acreage and a negative effect on nonprogram-planted acreage. Estimated price elasticities are higher than in studies where risk was ignored.