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Technology choice under changing peanut policies |
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| Authors: | T Jeffrey Price Marshall C Lamb Michael E Wetzstein |
| Institution: | Management Services Division, Virginia Department of Transportation, Richmond, VA, USA;National Peanut Research Laboratory, Dawson, GA, USA;Department of Agricultural and Applied Economics, The University of Georgia, Athens, GA 30602, USA |
| Abstract: | The effect of marketing quotas and price supports on technology adoption are examined for peanut production in the southeastern United States using a real options model of investment with output price and yield uncertainty. The optimal choice of peanut production technology (dryland versus irrigated) in the southeast is shown to depend on price supports and how they change. The manner in which price supports change will have an effect on the choice and rates of abandonment or adoption of production technologies. |
| Keywords: | Q14 Q16 Q18 |