SOUTHERN AGRICULTURE UNDER THE 2002 FARM BILL: A REPRESENTATIVE FARMS APPROACH
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The 2002 Farm Bill affects economic activity of farms and ranches in the southern United States. Using stochastic simulation techniques, key financial variables were projected for 39 representative farms and ranches in ten southern states. Results indicate 24 of 39 farms studied have more than a 40 percent likelihood of having annual cash flow deficits during the period 2002 through 2007. Results are largely consistent across commodities and between moderate and large size farms in the same geographic area.