The single index model (SIM), developed for analysis of financial assets, is assessed as a tool for evaluating the risk-return tradeoff faced in agricultural enterprise selection. This study tests whether some of the hypotheses underlying the SIM are valid when the SIM is used in agricultural...

A restricted profit function model of California agriculture is specified and estimated subject to prior information provided by economic theory. Symmetry, homogeneity, and convexity of the profit function are maintained in the estimation. Parameter estimates and elasticities are presented for...

A model of farmland accumulation analyzes the impact of credit allocation and the level of debt on farmland prices. The model stresses the importance of the real net wealth accumulated by the farming sector on the lending procedures for farmland purchases. It is shown that credit allocated on...

This article addresses (1) the differences in machinery cost estimating techniques, particularly for depreciation and opportunity cost, and (2) the necessary modifications in cost estimating techniques to account for the changing monetary base under inflation. The conditions under which capital...

Agriculture department programs in 43 states surveyed offer similar services in regulation, market promotion, and natural resource conservation but are organized differently. Two OLS equations were estimated to explain state agriculture department expenditures as a function of gross farm sales,...

An intergeneration transfer simulation model is used to project estate transfer costs and the value of transfers to the heirs before and after the tax reform act of 1976. Lower Federal estate taxes result for estates that qualify for the special use valuation of farmland provision of the new...

This study examines the question of income adequacy as it relates to the broader issue of an economically viable farm size in the Columbia Basin of Washington State. The issue is especially relevant because of possible limitations on farm size resulting from enforcement of the 1902 Reclamation...

Differential and variable interest rate pricing strategies are used for agricultural operating loans by the majority of South Dakota commercial banks. However, the prevalence does vary by legal organization. Significant differences were found among differential interest rate pricing structures...

Simulation is used to examine impacts of land expansion strategies and self-imposed borrowing limits upon growth and survival odds of a dryland wheat farm over a 15-year period. Compared to share-rent expansion, purchasing land shows only marginally great growth at best, with substantially...

Recent interest in equity financing for commercial agriculture has created the need to reexamine the required rate of return for agricultural equity. The required rates of return for ten publicly held firms with agricultural operations are examined with arbitrage pricing theory. The results...