agricultural income risk and acreage decision in china: analysis of the alternative relationship between soybean&corn
qingsen mao
dept. of agricultural and resource economics, the university of tokyo
abstract: after china’s admission into the wto, chinese farmers’ incomes are considered flexible. utilizing the data from 11 provinces in 1986-2002, this paper analyses the effect of agricultural income risk on farmers’acreage decisions through the estimation of soybean farmers supply response, taking the mixed cropping of soybean and corn as an example since the cropping system is popular in china. chinese farmers are found to behave rationally, but respond
modestly to the agricultural income risk in their acreage decision although the agricultural incomes from soybean and
corn are risky and the risk is mainly brought by price uncertainty.
key words: income risk, acreage decision, cropping system, supply response
qingsen mao
dept. of agricultural and resource economics, the university of tokyo
abstract: after china’s admission into the wto, chinese farmers’ incomes are considered flexible. utilizing the data from 11 provinces in 1986-2002, this paper analyses the effect of agricultural income risk on farmers’acreage decisions through the estimation of soybean farmers supply response, taking the mixed cropping of soybean and corn as an example since the cropping system is popular in china. chinese farmers are found to behave rationally, but respond
modestly to the agricultural income risk in their acreage decision although the agricultural incomes from soybean and
corn are risky and the risk is mainly brought by price uncertainty.
key words: income risk, acreage decision, cropping system, supply response