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Discovery, The Student Journal of Dale Bumpers College of Agricultural, Food and Life Sciences
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An Acreage Response Model For Arkansas Rice Farms, J. Grant Ballard, Michael R. Thomsen
An Acreage Response Model For Arkansas Rice Farms, J. Grant Ballard, Michael R. Thomsen
Discovery, The Student Journal of Dale Bumpers College of Agricultural, Food and Life Sciences
In recent years, market forces have signaled a strong demand for rice as well as other Arkansas crops. However, high fuel, fertilizer, and chemical costs have negatively impacted farm income, and these input costs are widely known to impact planting decisions of farmers. The goal of this study is to develop and estimate an acreage response model for rice. The model is used to compute acreage response elasticities and provides insight into roles that input costs and crop prices play in acreage decisions made by producers. Economic theory predicts that prices for important inputs such as fuels and fertilizers as …