This paper explores the U.S. agricultural production systems, focusing on the interactions between the crop and livestock sectors. The estimation results of the differential input demand system suggest that the demand for hired labor, self-employed labor, intermediate goods, capital, and land...

In this article we propose a theoretical model for analyzing capital requirement in agricultural production and define excess capital thereupon. We develop a two-step method that allows endogenous regressors in the maximum likelihood estimation. The two-step procedure is also capably of...

Agricultural production in greenhouses is an important user of energy and can lead to greenhouse gas emissions. This study uses Data Envelopment Analysis to compute input-based technical efficiency measures and energy efficiency of Michigan greenhouse growers. A two-limit Tobit model is used to...

Using a volatility spillover model, we find evidence of significant spillovers from crude oil prices to corn cash and futures prices, and that these spillover effects are time‐varying. Results reveal that corn markets have become much more connected to crude oil markets after the introduction...

Purpose – The purpose of this paper is to provide a unified theoretical framework that explains farm capital structure choice. Design/methodology/approach – The framework accommodates different credit access scenarios and heterogeneous risk profiles of borrowers. It recognizes that the costs...

This article has presented a farmer decision making model of participation in the Conservation Reserve Program (CRP) under the current rising bio-fuel production. The decision is specified as an optimal stopping problem and farming return is assumed following stochastic process with the...

In this paper we specify and estimate producers’ risk preference using farm data. We allow heterogeneous risk preference across individuals and propose a specification to model the heterogeneity. We base farmers’ decision making on a utility maximization framework and incorporate both market...