Participation in the Corn Program: The Farm Owner/Operator Decision
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2118
Socioeconomic characteristics, profitability considerations, and opinion regarding agriculture programs are analyzed relative to the decisions of Ohio farm operators to (1) establish a corn acreage base on owned land and (2) set corn acres aside in 1991. Probabilities of establishing a base acreage and setting land aside increase as corn acres, specialization in crops, and debt-asset ratio increase. These findings suggest that farms with these characteristics will be most affected by downsizing the com program. Operators who establish a base acreage are associated with lower expected yield and higher chemical expenses, suggesting participants may be less economically efficient than nonparticipants.