Degree Type

Thesis

Date of Award

2010

Degree Name

Master of Science

Department

Economics

First Advisor

John A. Miranowski

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.

Copyright Owner

Lin Yang

Language

en

Date Available

2012-04-30

File Format

application/pdf

File Size

75 pages

Included in

Economics Commons

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