This paper analyzes the optimal behavior of farmers in the presence of direct payments and uncertainty. With the help of an empirical analysis for Switzerland, it confirms previously obtained theoretical results and determines the magnitude of the theoretically predicted effects. The results...

A dynamic economic model of soil erosion is presented where the intensity of use of inputs and the choice of crops, each one associated with distinct erosion rates, allow the farmer to control soil losses. The results show that it is predominately optimal to approach the singular path/steady...