A combination of experimental and simulation procedures identify important factors in an Illinois cash grain farmerÂ’s machinery investment decisions. In an experiment setting, a panel of farmers based investment decisions on their own expectations, farm situations, and varying policy...

Factors affecting a lenderÂ’s decision to grant farmers operating credit in North Dakota are quantified in an intertemporal loan profitability model using stochastic dynamic programming. Experimental data obtained from a panel of lenders demonstrates the sensitivity of an optimal policy to...