Assessing the Impacts of Soil Carbon Credits and Risk on No-Till Rice Profitability Report as inadecuate




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Rice is a major cash crop in eastern Arkansas, but most rice acres are intensively cultivated and grown on rented land. No-till is an effective means of sequestering soil carbon and reducing greenhouse gas emissions, and economic incentives exist for no-till in the form of carbon credits. Studies evaluating the economic potential of carbon credits focus on producers only and do not take into consideration the landlord’s perspective. This analysis evaluates the profitability and risk efficiency of no-till management and carbon credits in Arkansas rice production from the prospective if the landlord using simulation and stochastic efficiency with respect to a function (SERF). The results indicate carbon credits may have potential to enhance preference for no-till in rice production by risk-averse landlords.

Keywords: certainty equivalent ; landlord ; no-till ; rice ; risk premium

Subject(s): Farm Management

Production Economics

Risk and Uncertainty

Issue Date: 2009

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/45806

Total Pages: 25

Record appears in: Southern Agricultural Economics Association (SAEA) > 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia





Author: Watkins, K. Bradley ; Hignight, Jeffrey A. ; Anders, Merle M.

Source: http://ageconsearch.umn.edu/record/45806?ln=en







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