INVESTMENT IN SITE SPECIFIC CROP MANAGEMENT UNDER UNCERTAINTY

This paper examines the impact of price uncertainty on farmers' adoption decision in site specific crop management using an option value model. It shows that price uncertainty could lead farmers to delay the investment 3 to 25 years as opposed to the net present value rule. Immediate investment is only worthwhile on high soil fertility and soil quality fields with high variability.

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Year of publication:	1999
Authors:	Isik, Murat ; Khanna, Madhu ; Winter-Nelson, Alex
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Crop Production/Industries \| Risk and Uncertainty

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Extent:	application/pdf
Series:	1999 Annual meeting, August 8-11, Nashville, TN.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 1999 Annual meeting, August 8-11, Nashville, TN Number 21684
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005525921