Risk attitudes and premiums of U.S. corn and soybean producers: an empirical investigation |
| |
Authors: | Michael J. Livingston Ashok K. Mishra |
| |
Affiliation: | 1. U.S. Department of Agriculture, Economic Research Service, 1400 Independence Ave. SW, Mailstop 1800, Washington, DC, 20520-1800, USA 2. Department of Agricultural Economics and Agribusiness, Louisiana State University AgCenter, 211 Martin D. Woodin Hall, Baton Rouge, LA, 70803, USA
|
| |
Abstract: | The 2000 Agricultural Risk Protection Act and 2002 Farm Security and Rural Investment Act reduced price and yield risks faced by many U.S. crop producers to low levels. We use a non-structural methodology extended for application to pseudo panels and national survey data to examine the risk attitudes of U.S. corn and soybean producers to test whether, and examine how, risk attitudes varied during the 1996–2001 and 2002–2008 periods by revenue category. We cannot reject the hypothesis of risk neutrality for the entire population, and for each revenue category, for the former period, but can reject risk neutrality, in favor of risk tolerance, for the entire population and for the larger revenue categories for the latter period. Estimated risk premiums for the latter period suggest that U.S. corn and soybean farmers who earn more require larger payments to remain indifferent between receiving their expected income with certainty and receiving an uncertain income from farming and government programs. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|