Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-10T10:54:24.311Z Has data issue: false hasContentIssue false
  • English
  • Français

Analyzing Tenure Arrangements and Crop Rotations Using Farm Simulation and Probit Analysis

Published online by Cambridge University Press:  05 September 2016

Gregory M. Perry ,
M. Edward Rister ,
James W. Richardson  and
Warren R. Grant
Gregory M. Perry
Affiliation:
Department of Agricultural and Resource Economics, Oregon State University
M. Edward Rister
Affiliation:
Department of Agricultural Economics, Texas A & M University
James W. Richardson
Affiliation:
Department of Agricultural Economics, Texas A & M University
Warren R. Grant
Affiliation:
Economic Research Service, USDA
Get access Rights & Permissions [Opens in a new window]

Abstract

Whole farm simulation analysis and econometric techniques are employed in an analysis of crop rotations and tenure arrangement strategies. The FLIPSIM model is used to analyze a representative Texas Upper Gulf Coast rice and soybean farm. Probit analysis is then used to determine the impact of net cash farm income, land tenure, and crop rotation on probability of survival. Results suggest that, although the simulation model is useful in providing information on the effect at the farm level of following the different strategies, probit results provide greater understanding into the returns and risk inherent to each strategy.

Keywords

simulationsurvivalprobitriskrotationtenure
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 2 , December 1986 , pp. 165 - 174
Copyright
Copyright © Southern Agricultural Economics Association 1986

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Amemiya, Takeshi. “Qualitative Response Models: A Survey.” J. Econ. Lit., 19,4(1981):1,483–1,536.Google Scholar
Anderson, Jock R., Dillon, John L., and Hardaker, Brian. Agricultural Decision Analysis. Ames, Iowa: The Iowa State University Press. 1977.Google Scholar
Apland, Jeffrey, Barnes, Robert N., and Justus, Fred. “The Farm Lease: An Analysis of Owner-Tenant and Landlord Preferences Under Risk.” Amer. J. Agr. Econ., 66,3(1984):376–384.CrossRefGoogle Scholar
Bessler, David A. “Quantitative Techniques. Discussion.” Paper presented at American Agricultural Economics Association/Farm Foundation Seminar; Ames, Iowa; August 7, 1985.Google Scholar
Boldt, Kelby. Liberty County Extension Agent; Liberty, Texas. Personal Interview; November, 1983.Google Scholar
Brandao, Elizabeth, McCarl, Bruce A., and Schuh, G. Edward. “Predicting the Impact of New Cropping Practices upon Subsistence Farming: A Farm Level Analysis in Brazil.” West. J. Agr. Econ., 9,2(1984):329–341.Google Scholar
Candler, W. and Cartwright, W.. “Estimation of Performance Functions for Budgeting and Simulation Studies.” Amer. J. Agr. Econ., 51,1(1969):159–168.CrossRefGoogle Scholar
Cheung, Steven N. S. The Theory of Share Tenancy. Chicago: University of Chicago Press, 1969.Google Scholar
Diarra, Amadou, Smith, Roy J. Jr., and Talbert, Ronald E.. “Interference of Red Rice (Oryza sativa) with Rice (O. sativa).” Weed Science, 33(1985):644–649.CrossRefGoogle Scholar
Dishman, William Sr., Jefferson County Rice Producer and Board Member, Texas Rice Research Foundation. Personal Interview; June, 1985.Google Scholar
Freund, R. J..“The Introduction of Risk into a Programming Model.” Econometrica, 24,3(1956):253–264.CrossRefGoogle Scholar
Geoffrion, Arthur M. “The Purpose of Mathematical Programming is Insight, Not Numbers.” Interfaces, 7,1(1976):81–92.CrossRefGoogle Scholar
Grant, Warren R., Beach, John, and Lin, William. Factors Affecting Supply, Demand, and Prices of U. S. Rice. USDA, ERS, National Economics Division Report No. AGES840803; October, 1984.Google Scholar
Griffin, Ronald C, Perry, Gregory M., and McCauley, Gary N.. Water Use and Management in the Texas Rice Belt Region. Texas Agricultural Experiment Station, MP-1559; June, 1984.Google Scholar
Hadar, J. and Russell, W. R.. “Rules for Ordering Uncertain Prospects.” Amer. Econ. Rev., 59,1(1969):25–34.Google Scholar
Hanushek, Eric A. and Jackson, John E.. Statistical Methods for Social Scientist. New York: Academic Press, 1977.Google Scholar
Heady, Earl O. “Simplified Presentation and Logical Aspects of Linear Programming Technique.” J. Farm Econ., 36,5(1954):1,035–1,048.CrossRefGoogle Scholar
Hoskin, Roger L. An Economic Analysis of Alternative Saginaw Valley Crop Rotations— An Application of Stochastic Dominance Theory. Unpublished Ph.D. dissertation, Michigan State University, 1981.Google Scholar
Jeffrey, Barry. Liberty County Rice Producer, Chairman of the Board, Liberty State Bank. Personal Interview; November, 1983.Google Scholar
Johnson, L. M..“Crop Rotation Economics in Western Canada Using Form Budgeting Criteria.” Can. J. Farm. Econ., 14,6(1979):20–28.Google Scholar
Lin, William, Johnson, James, and Calvin, Linda. Farm Commodity Programs: Who Participates and Who Benefits? USDA, ERS, Agr. Econ. Rep. No. 474; September, 1981.Google Scholar
Mullins, Troy, Grant, Warren R., and Krenz, Ronald D.. Rice Production Practices and Costs in Major U. S. Rice Areas, 1979. Arkansas Agr. Exp. Sta. Bull. No. 851, University of Arkansas; March, 1981.Google Scholar
Musser, Wesley N., Alexander, Vickie J., Tew, Bernard V., and Smittle, Doyle A.. “A Mathematical Programming Model for Vegetable Rotations.” So. J. Agr. Econ., 17,1(1985):169–176.Google Scholar
Pederson, Glenn D. “Strategies for Managing Risk Under Long-Term Farmland Leases.” Paper presented at the AAEA Annual Meetings, Iowa State University; Ames, Iowa; August, 1985.Google Scholar
Penson, John B. Jr., Hughes, Dean W., and Robert Romain, F. J.. An Overview of COMGEM: A Macroeconomic Model Emphasizing Agriculture DIR 84-1, SP-12; Department of Agricultural Economics, Texas A&M University; College Station, Texas;December, 1984.Google Scholar
Perry, Gregory M., Rister, M. Edward, Richardson, James W., Grant, Warren R., and Sij, John W. Jr.. The Impact of Tenure Arrangements and Crop Rotations on Upper Gulf Coast Rice Farms. Texas Agricultural Experiment Station, B-1530, 1986.Google Scholar
Richardson, James W. and Nixon, Clair J.. Description of FLIPSIM V: A General Firm Level Policy Simulations Model. Texas Agricultural Experiment Station, B-1528, 1986.Google Scholar
Sij, John. Soil and Crop Scientist, Texas Agricultural Experiment Station; Beaumont, Texas; Personal Interview; November, 1983.Google Scholar
Sutinen, J. G..“The Rational Choice of Share Leasing and Implications for Efficiency.” Amer. J. Agr. Econ., 57,4(1975):613–621.CrossRefGoogle Scholar
Turner, Fred. Soil and Crop Scientist, Texas Agricultural Experiment Station; Beaumont, Texas; Personal Interview; November, 1983.Google Scholar