Work

Machinery Investment Decisions: a Simulated Analysis for Cash Grain Farms

Year: 1988

Type: article

Abstract: A combination of experimental and simulation procedures identify important factors in an Illinois cash grain farmer's machinery investment decisions. In an experiment setting, a panel of farmers based investment decisions on their own expectations, farm situations, and varying policy scenarios. In general, the results show investment levels statistically related to the tenure and leverage of operators, the economic conditions they faced, and the age of existing machinery. Alternative public policies of lower commodity price supports, tax reform, and interest rate subsidies influenced the timing of purchases but did not alter total investment amounts.

Source: RePEc: Research Papers in Economics

DOI: 10.22004/ag.econ.32105

Authors: Gustafson, Cole R., Barry, Peter J., Sonka, Steven T.

Language: English

Topic: Agricultural economics and policies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

SDGs: Zero hunger, Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

Funders: U.S. Department of Agriculture, University of Illinois at Urbana-Champaign, Economic Research Service

OpenAlex ID: W2102224699