An economic analysis of production responses for cotton and grain sorghum on the Texas High Plains
Farmers on the Texas High Plains, as in other areas of the state and nation, are continually faced with the problem of adjusting to changing conditions. Some of the conditions are changes in resource and product prices, changes in resource levels and technology, changes in enterprise alternatives, and changes in institutional factors. As resource and product prices change, farmers will change the use of existing resources among enterprise alternatives when attempting to maximize profits. For some resources such as stock resources , increasing resource prices from a reduction in the stock will provide incentives for farmers to adjust the resource use. New products or new enterprise alternatives may also offer opportunities for farmers to increase profits. Institutional factors, such as government programs, bank policies, land tenure arrangements, etc., affect farmer's profit maximization positions by affecting resource restrictions or resource costs.