An alternative unconstrained expected-utility maximization model of farm debt is developed using the location-scale parameter condition that incorporates the empirically validated hypotheses of decreasing absolute and constant relative risk aversion. Simulation-optimization results based on the...

For production risk with identified physical causes, the nature of risk, production characteristics, risk preference, and prices determine optimal input use. Here, a two-way classification for pairs of inputs – each input as being risk increasing or decreasing and pairs as being risk...

Mean-variance analysis in the form of risk programming has a long, productive history in agricultural economics research. And risk programming continues to be used despite well known theoretical results that choices based on mean-variance analysis are not consistent with choices based on...

This study examines the relationship between agricultural profits and farm household wealth across locations and farm sizes in U.S. agriculture. A multiperiod household model is used to develop hypotheses for testing. Results indicate that farmland has out-performed nonfarm investments over the...

Replaced with revised version of paper 02/15/06.

Replaced with revised version of paper 08/31/06.

This paper examines the role of risk aversion in setting herbicide label rates and application rates. Companies establish label rates to be efficacious for a wide range of conditions. The use of reduced rates of herbicide offer the opportunity to increase farm profit and reduce herbicide use, an...

The cotton harvesting industry is in the beginnings of its next technological advance, cotton harvesters that form cotton modules inside the machine then deposit them off the rows. These new machines eliminate the need for extra labor and equipment, but are more expensive than conventional...

Using a non-parametric linear programming approach, our contribution is (1) to examine the impact of incorporating risk in efficiency analysis and (2) to compare the efficiency measures with and without risk for continuous and rotation cropping systems. The model uses Nebraska cropping system...

One of the potential management practices of precision agriculture (PA) is the capability of varying input application rate across a field. A potential benefit of that practice is the reduction in yield variability. Temporal reduction in yield variability can also be achieved through irrigation...