Cooper, Joseph C. and Osborn, Tim (1998): The effect of rental rates on the extension of Conservation Reserve Program contracts. Published in: American Journal of Agricultural Economics , Vol. 80, No. 1 (February 1998): pp. 184-194.
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Given that the majority of conservation reserve program (CRP) contracts on approximately 36 million acres of enrolled land expire concurrently, re-enrollment decisions by farmers and the federal government have high budgetary implications. Using a survey of over 8,000 CRP contract holders, we apply an ordered response discrete choice model to explicitly model the range in rental rates over which the representative farmer may be ambivalent to renewing the CRP contract. Given the empirical results from the ordered response model, we estimate acreage re-enrollment as a function of the rental rate and compare them to results of a binomial choice model.
|Item Type:||MPRA Paper|
|Original Title:||The effect of rental rates on the extension of Conservation Reserve Program contracts|
|Keywords:||CRP contracts; ordered probit; re-enrollment; respondent indifference|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q0 - General|
|Depositing User:||Joseph C. Cooper|
|Date Deposited:||10. Sep 2010 15:53|
|Last Modified:||14. Feb 2013 14:01|
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