PRODUCTION RISK REVISITED IN A STOCHASTIC FRONTIER FRAMEWORK: EVALUATING NOISE AND INEFFICIENCY IN COVER CROP SYSTEMS

This paper investigates both risk and technical inefficiency in a general stochastic frontier framework that is consistent with the Just-Pope framework. After applying the model to two separate cash crop-cover crop systems, the more general stochastic frontier model is found to reorder the noisiness of alternative cover crop regimes.Crop Production/Industries, Risk and Uncertainty,

FARMERS' PERCEPTIONS OF SPATIAL YIELD VARIABILITY AS INFLUENCED BY PRECISION FARMING INFORMATION GATHERING TECHNOLOGIES

This study evaluated how farmers' perceptions of spatial yield variability are influenced by precision technologies. Farmer estimates from a mail survey were regressed on use of alternative information technologies and personal characteristics. Results indicate that farmers who adopted yield monitors with GPS for cotton perceived significantly higher spatial yield variability.Research and Development/Tech Change/Emerging Technologies,

COTTON CULTIVAR, PLANTING, IRRIGATING, AND HARVESTING DECISIONS UNDER RISK

Producers in southwest Oklahoma lack adequate information about optimal planting decisions for cotton. This study uses a cotton growth simulation model to evaluate alternative cultivar, planting date, irrigation, and harvest choices. Effects of using information about soil moisture at reproduction and revenue loss at harvest in making cultivar and planting data decisions are evaluated. Using soil temperature information to plant at an early date produced high net revenue some years, but reduced mean net revenue and increased risk. Producers maximizing expected net revenue should plant a short-season cultivar in late May and use soil moisture information to schedule irrigation at reproduction.Crop Production/Industries,

ECONOMIC EVALUATION OF INCOME PROTECTION CHOICES FOR WEST TENNESSEE CORN PRODUCERS

Farmers need information about the expected value and variability of net revenues for alternative crop insurance and futures hedging strategies to manage risk. Specifically, the model will determine which risk management strategies are most desirable under various levels of risk aversion. The unstable futures basis relation in the data used in the simulation model contributed to increased variability of net revenues. In general, none of the crop insurance or hedging strategies markedly reduced variability of net revenue and relative riskiness when compared with the cash strategy. Revenue Assurance strategies were the most effective at setting a floor on net revenues. As a result, Revenue Assurance products may perform well for extremely risk averse producers.Marketing, Risk and Uncertainty,

Risk and Return for Bioenergy Crops under Alternative Contracting Arrangements

This study evaluated the potential to supply biomass feedstocks under alternative contract arrangements for a northwest Tennessee 2,400 acre grain farm. The four potential types of contracts analyzed in this study offer different levels of biomass price, yield, and production cost risk sharing between the representative farm and the processor.Farm Management, Resource /Energy Economics and Policy,

Effects of Herbicide-Resistant Technology Fees on the Plant Population Decision for Cotton Production

This study evaluated effects on cotton net revenues of four herbicide-resistant technology policies used since 1996 by Monsanto. Results indicate that farmers may have an incentive to switch from narrow-row to wide-row cotton and to use a lower plant density when the technology fee is tied to the seeding rate.Farm Management,

The Variable-Rate Decision for Multiple Inputs with Multiple Management Zones

Research has evaluated the relative profitability of variable-rate versus uniform-rate application of a single input in fields with multiple management zones. This paper addresses the variable-rate decision for multiple inputs. The decision-making framework is evaluated for nitrogen and water applied to irrigated cotton in fields with three management zones.Crop Production/Industries,

OPTIMAL PLANT POPULATION FOR ULTRA-NARROW-ROW COTTON PRODUCTION AS INFLUENCED BY LINT AND TRANSGENIC SEED PRICES

Farmers are concerned about the high costs of transgenic seed and technology fees associated with the large plant population densities recommended for ultra-narrow row cotton. This study evaluated the effects of alternative plant population density decision criteria on net revenues under different lint price and transgenic seed cost scenarios. Results indicate that farmers may be able to maximize profits by seeding for a target plant population density of approximately 15.5 plants m-2.Crop Production/Industries,

Estimating Production Risk and Inefficiency Simultaneously: An Application to Cotton Cropping Systems

By using a stochastic frontier framework, the mutual effect of input use on production risk and inefficiency is investigated. Disentangling this mutual effect proves important for empirical reasons, at least when applied to west Tennessee cotton systems grown after various cover crops. The most striking result is that the stochastic frontier model, when compared with a typical Just-Pope model, reorders the relative riskiness of cover-crop regimes associated with the cotton systems.cotton, inefficiency, Just-Pope, production risk, stochastic production frontier, Production Economics,

MODELING FARM AND OFF-FARM ECONOMIC LINKAGES TO ANALYZE THE IMPACTS OF AN AREA-WIDE INSECT MANAGEMENT PROGRAM ON A REGIONAL ECONOMY

This study evaluated the impacts of the boll weevil eradication program at the farm level and on the west Tennessee region. Budgets, an acreage response model, and an input-output model were used to evaluate direct and indirect program impacts. The program generates small but positive economic benefits for the region.Crop Production/Industries,