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Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota

Publication ,  Journal Article
Sumner, DA; Wilson, NLW
Published in: Review of Agricultural Economics
June 1, 2005

The rate of return to ownership of California dairy quota is about 27% per year-well above that of typical financial assets, but in line with other measured returns to agricultural quotas. Ownership of dairy quota does not contribute positively to total variation of typical portfolios, including those of dairy farm assets, and so contributes little or no portfolio risk. A plausible alternative hypothesis for the high rate of return is that quota owners see significant risk of policy change that would reduce future quota values. That is, they face default risk in quota ownership.

Duke Scholars

Published In

Review of Agricultural Economics

DOI

ISSN

1058-7195

Publication Date

June 1, 2005

Volume

27

Issue

2

Start / End Page

245 / 258

Related Subject Headings

  • Agricultural Economics & Policy
  • 3801 Applied economics
  • 1402 Applied Economics
 

Citation

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Sumner, D. A., & Wilson, N. L. W. (2005). Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota. Review of Agricultural Economics, 27(2), 245–258. https://doi.org/10.1111/j.1467-9353.2005.00224.x
Sumner, D. A., and N. L. W. Wilson. “Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota.” Review of Agricultural Economics 27, no. 2 (June 1, 2005): 245–58. https://doi.org/10.1111/j.1467-9353.2005.00224.x.
Sumner DA, Wilson NLW. Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota. Review of Agricultural Economics. 2005 Jun 1;27(2):245–58.
Sumner, D. A., and N. L. W. Wilson. “Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota.” Review of Agricultural Economics, vol. 27, no. 2, June 2005, pp. 245–58. Scopus, doi:10.1111/j.1467-9353.2005.00224.x.
Sumner DA, Wilson NLW. Capitalization of farm policy benefits and the rate of return to policy-created assets: Evidence from California dairy quota. Review of Agricultural Economics. 2005 Jun 1;27(2):245–258.
Journal cover image

Published In

Review of Agricultural Economics

DOI

ISSN

1058-7195

Publication Date

June 1, 2005

Volume

27

Issue

2

Start / End Page

245 / 258

Related Subject Headings

  • Agricultural Economics & Policy
  • 3801 Applied economics
  • 1402 Applied Economics