Economic Survivability of Mississippi Rice Farms: a Deterministic Simulation Approach

state in the country with more than 1.5 million This study evaluates the economic suracres (USDA, Crop Production). vivability of rice farms in the Delta area of Since 1981, rice acreage in the Mississippi Mississippi. A general whole-farm simulation River Delta region, as in other rice-producing model, FLIPSIM V, is used to simulate the regions of the country, has generally declined. operations of representative rice farms over a Part of this acreage reduction was the result 10-year period. Although farm size did not of participation in federal farm programs. In change for any of the representative farms 1983, the PIK program was partly responsible considered, the financial structure of these for reducing harvested rice acreage in infarms changed considerably. Crop mix was dividual states to levels 40 to 50 percent of found to cause significant differences in the their 1981 acreage. However, other factors economic growth and financial viability of rice have also had an impact on rice-acreage levels farms in the region. in recent years. In the early 1980's, rising production costs reduced the profit margins asso