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Stochastic-Computerized-Activity-Budgeting For Sheep Enterprises

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  • Mill, Stephen J.
  • Longworth, John W.

Abstract

Queensland Department of Primary Industries and University of Queensland Stochastic-computerised-activity-budgeting (SCAB) facilitates and extends the traditional gross margins analysis for sheep activities. SCAB is one of the very few computerised management aids so far developed for Australian farm management situations. In the deterministic mode SCAB calculates gross margins based on point estimates of all the relevant parameters. In stochastic mode it generates a distribution of pay-offs (gross margins) based on the manager's subjective probability distribution for the relevant major uncertain paramaters. The variance of this distribution of pay-offs represents a measure of the risk associated with the activity given the manager's current knowledge and expectations.

Suggested Citation

  • Mill, Stephen J. & Longworth, John W., 1975. "Stochastic-Computerized-Activity-Budgeting For Sheep Enterprises," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 19(2), pages 1-11, August.
    • Handle: RePEc:ags:ajaeau:22560
    DOI: 10.22004/ag.econ.22560
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    References listed on IDEAS

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    1. Wilfred Candler & Michael Boehlje & Robert Saathoff, 1970. "Computer Software for Farm Management Extension," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(1), pages 71-80.
    2. Allan N. Rae, 1971. "Stochastic Programming, Utility, and Sequential Decision Problems in Farm Management," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(3), pages 448-460.
    3. I.D. McArthur & John L. Dillon, 1971. "Risk, Utility And Stocking Rate," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 15(1), pages 20-35, April.
    4. Anderson, Jock R., 1974. "Risk Efficiency in the Interpretation of Agricultural Production Research," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(03), pages 1-54, September.
    5. McArthur, I.D. & Dillon, John L., 1971. "Risk, Utility And Stocking Rate," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 15(1), pages 1-16, April.
    6. Byrne, P.F., 1964. "Parametric Budgeting Using a Model of the Sheep Enterprise," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(03), pages 1-42, September.
    7. Emilio M. Francisco & Jock R. Anderson, 1972. "Chance And Choice West Of The Darling," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 82-93, August.
    8. Cassidy, P.A. & Rodgers, J.L. & McCarthy, W.O., 1970. "A Simulation Approach to Risk Assessment in Investment Analysis," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 38(01), pages 1-22, March.
    9. Trebeck, David B. & Hardaker, J. Brian, 1972. "The Integrated Use Of Simulation And Stochastic Programming For Whole Farm Planning Under Risk," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 1-12, August.
    10. Ludwig M. Eisgruber, 1973. "Managerial Information and Decision Systems in the U. S. A.: Historical Developments, Current Status, and Major Issues," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(5), pages 930-937.
    11. David B. Trebeck & J. Brian Hardaker, 1972. "The Integrated Use Of Simulation And Stochastic Programming For Whole Farm Planning Under Risk," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 16(2), pages 115-126, August.
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    Cited by:

    1. Richardson, R.A. & Hardaker, J.B. & Anderson, Jock R., 1976. "Farm-level Decision Models for Developed Agriculture," 1976 Conference, July 26-August 4, 1976, Nairobi, Kenya 182312, International Association of Agricultural Economists.
    2. Longsworth, John & Menz, Kenneth M., 1977. "Training For Farm Management Decisionmaking," 1977 Occasional Paper Series No. 1 190969, International Association of Agricultural Economists.

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