Acreage allocation in the presence of various commodity and conservation programs: The case of conservation reserve program and crop production in the Midwest
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The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).
History
The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.
Dates of Existence
1898–present
Historical Names
- Department of Economic Science (1898–1910)
- Department of Economics and Political Science (1910-1913)
- Department of Applied Economics and Social Science (1913–1924)
- Department of Economics, History and Sociology (1924–1931)
- Department of Economics and Sociology (1931–1967)
Related Units
- College of Agricultural and Life Sciences (parent college)
- College of Liberal Arts and Sciences (parent college)
- College of Business (parent college)
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Abstract
A multinomial fractional logit model is developed in this article to examine the effects of various market variables, commodity and conservation program payments and county physical attributes on crop acreage allocation and CRP enrollment simultaneously in the Midwest region of the United States. Nine states and eleven years county level panel data are employed to estimate the acreage allocation among corn, soybeans, wheat, hay, and CRP participation simultaneously. The estimation results suggest that crop profits, CRP rental payment, and physical characteristics of cropland together determine the acreage allocation among alternative crops and CRP. Crop profits have significant, negative impacts on CRP enrollment, while current year CRP rental rate plays only a limited role. Total commodity program payment received in a county is positively related with program crop acreage and negatively related with non-program crop and CRP acreage. No statistical evidence is found that EQIP has an adverse impact on CRP participation.