In this paper a description is provided of the development and use of a target-MOTAD model for use in consultative work with farmers who are under financial pressure. The analysis of downside risk and introduction of a trade-off between financial and business risks are key features of this model...

Recent applications of risk analysis in corporate finance to farm firm decision making are reviewed in this paper. The inclusion of risk parameters modifies some of the traditional agricultural economics views on investment, financing and the portfolio choice problem. A clearer view emerges of...

Single-index models from portfolio theory have previously been adapted for risk efficient farm planning in North America. The potential for using single-index models in farm planning is considered in this paper both theoretically and in the light of two illustrative Australian case studies. It...

A model is developed from decision theory for evaluating probabilistic information, especially for decision makers who are risk averse. The value of information to such a decision maker is disaggregated into mean and variance effects. It is shown that the degree of risk aversion of the decision...

The objective of this paper is to give a brief exposition of the decision criteria commonly propounded for decisions under risk and uncertainty. The review of these criteria in the context of farm management decisions reiterates the inappropriateness of all except the expected utility...

In multi-period farm planning problems involving uncertainty, the usual case in the real world, planning must involve a continuous process of re-evaluation. In this dynamic situation it is necessary to know the number of periods to include in the decision model to ensure optimality. This is...

This study strengthens the empirical basis for risk analysis by identifying the importance which producers attach to different risk management strategies in New Zealand's deregulated farming environment. A nationwide survey covering eight farm types was conducted. As range of production,...

A simulation technique is advanced as a means of determining the probability of achieving various possible financial outcomes when assessing alternative investments. To this end a model is constructed and applied to a proposed investment in pasture improvement. Results are contrasted with a...

Farming is a high risk business because of the inherent variability of the natural environment in which it is placed and the markets in which its products are sold. Farmers have learned to cope with variability and have adopted management strategies which decrease risk to the farm firm. This...