Effects of the GM Controversy on Iowa Corn-Soybean Farmers' Acreage Allocation Decisions
نویسندگان
چکیده
Prior to the 2000 planting season, some industry obsemers predicted acreage of genetically modified crops would decline dramatically. However, actual 2000 plantings presented a puzzle. Farmers reduced their acreage of genetically modified corn, but concurrently increased their acreage of genetically modified soybeans. We demonstrate that it may be theoretically optimal for risk-averse farmers to reduce their corn acreage but not their soybean acreage. However, past experience, attitudes, and farm size explained planting decisions to a larger degree than did risk preferences.
منابع مشابه
Economic Behavior Under Uncertainty : A Joint Analysis of Risk Preferences and Technology
A method is developed to estimate jointly risk preferences and technology under general conditions. The approach is illustrated in an application to the analysis of U.S. corn-soybean acreage decisions over time. The results provide useful information on the nature of farmers' risk preferences and on the influence of price risk and production risk on acreage allocation and fanners' welfare.
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