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Understanding the Economic Factors Influencing Farm Policy Preferences

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A survey conducted in Mississippi, Texas, Indiana, and Nebraska elicited producers' preferences for various farm policy changes. This permitted examination of the diversity of preferences that single-state studies have not allowed. Five policy choices, including deficiency payments, loan programs, crop insurance, export programs, and disaster payments were examined. Logit model results predicting producer preferences for each of the five dichotomous policy choices are reported. Explanatory variables based on expected utility theory such as risk aversion, price and yield variability, and price–yield correlation are significant in various models.
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Document Type: Research Article

Affiliations: 1: Department of Agricultural Economics at Mississippi State University, 2: Department of Agricultural Economics at Texas A&M University, 3: Department of Agricultural Economics at Purdue University, 4: South Central Research and Extension Center for the University of Nebraska

Publication date: December 1, 2002

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