Submitted to: Agronomy Society of America, Crop Science Society of America, Soil Science Society of America Meeting
Publication Type: Abstract only
Publication Acceptance Date: 10/20/2003
Publication Date: 11/20/2003
Citation: Halloran, J.M., Griffin, T.S., Honeycutt, C.W. 2003. An economic analysis of rotation crop selections and participation in federal income support programs in the northeast potato cropping system. Agronomy Society of America, Crop Science Society of America, Soil Science Society of America Meeting. Interpretive Summary:
Technical Abstract: The Farm Security and Rural Investment Act of 2002 (2002 Farm Act) has modified the provisions concerning price and income support for commodity growers as well as expanded the list of commodities now qualifying. Concurrently, potato producers in the northeast have expended their use of program crops as a rotation in potato cropping systems. The changes in the 2002 Farm Act and cropping practices could impact the economic viability of these crops and the entire potato cropping system. An economic simulation model, incorporating stochastic elements, was developed and run to analyze the effects of the 2002 Farm Act on whole-farm profitability and income risk. The results show that through a combination of price and income supports the economic risk facing potato producers in the northeast significantly decreases relative to non-participation in these programs. The impact on overall farm profitability is mixed: with profitability depending on production costs, support levels, and market prices.