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Analyzing Tenure Arrangements and Crop Rotations Using Farm Simulation and Probit Analysis

Published online by Cambridge University Press:  05 September 2016

Gregory M. Perry ,
M. Edward Rister ,
James W. Richardson  and
Warren R. Grant
Gregory M. Perry
Affiliation:
Department of Agricultural and Resource Economics, Oregon State University
M. Edward Rister
Affiliation:
Department of Agricultural Economics, Texas A & M University
James W. Richardson
Affiliation:
Department of Agricultural Economics, Texas A & M University
Warren R. Grant
Affiliation:
Economic Research Service, USDA
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Abstract

Whole farm simulation analysis and econometric techniques are employed in an analysis of crop rotations and tenure arrangement strategies. The FLIPSIM model is used to analyze a representative Texas Upper Gulf Coast rice and soybean farm. Probit analysis is then used to determine the impact of net cash farm income, land tenure, and crop rotation on probability of survival. Results suggest that, although the simulation model is useful in providing information on the effect at the farm level of following the different strategies, probit results provide greater understanding into the returns and risk inherent to each strategy.

Keywords

simulationsurvivalprobitriskrotationtenure
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 18 , Issue 2 , December 1986 , pp. 165 - 174
Copyright
Copyright © Southern Agricultural Economics Association 1986

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