THE EFFECTS OF INCREASING FLEX ACRES ON FARM PLANNING AND PROFITABILITY

Dynamic programming techniques were used to evaluate the effects of alternative levels of normal flex acreage requirements on a Midwestern corn-soybean farm and a Southeastern cotton farm. Results indicate that increasing normal flex acres from the current level of 15 percent to 35 percent would provide inducement for farmers in both regions to plant more soybeans. In general, the cotton farm incurs considerably higher expected losses from the change. Thus, there are unequal regional consequences of such a policy change