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

Опубликовано на портале: 28-04-2005
Journal of Agricultural and Applied Economics. 1998.  Vol. 30. No. 1. P. 35-46. 
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 feed grain, wheat, and oilseed operations.

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